Global, multinational
international, and transnational
companies.
Bartlett and Goshal (Bartlett, C.A. and
Ghosal, S. 1989: Managing Across the
Borders: The Transnational Solution,
Hutchinson, Business Books.) classify
four types of company:multinational
international,
global,
and
transnational companies.
Headquarters of INTERNATIONAL
company retains considerable control
over the subsidiary’s management
systems and marketing policy, but less
so than in the global company. Products
and technologies are developed for the
home market, extended to other
countries with similar market
characteristics, then diffused elsewhere,
and the developmental sequence is
decided on the basis of managing the
product lifecycle as efficiently and
flexibility as possible.
The
headquarters
of
the
MULTINATIONAL company decides
financial policy but otherwise
permits subsidiaries considerable
autonomy
in
determining
management style and responding
to local product needs and
markets.
Examples include Unilever and
Philips.
The GLOBAL company, exemplified by
such Japanese firms as Kao and NEC,
centralizes key functions – including
marketing and finance. Headquarters
produces the new technology and
disseminates it to subsidiaries.
Cost
advantages
are
achieved
through
economies of scale and global-scale
operations. The need for efficiency and
economies of scale means that products
are developed that exploit needs felt
across the range of countries. Specific
local needs tend to be ignored.
The TRANSNATIONAL company evolved
in
the
1980s
in
response
to
environmental forces and simultaneous
demands for global efficiency, national
responsiveness,
and
worldwide
learning.
The transnational model
combines features of multinational,
global, and international models.
A
product is designed to be globally
competitive, and is differentiated and
adapted by local subsidiaries to meet
local market demands.
Bartlett and Goshal define these four
terms precisely. But much of the recent
literature is ambiguous.“Global” is
sometimes used to describe any
strategy planned for more than one
country, and the term “transnational” to
mean “multinational” (in the preBartlett and Goshal sense).
Eom (Emo, S. B. 1994: Transnational
Management System: An Emerging Toll
for Global Strategic Management. Sam
Advanced Management Journal, pp.2227.) entitles his paper “Transnational
management systems: an emerging tool
for global strategic management.” In
order to avoid confusion we will use the
terms only in the sense employed by
Bartlett and Goshal.
Hofstede's research findings are invaluable
when applied and modified to your specific
situation and needs. They provide a starting
point for further analysis and research.
First, review the similarities and the
differences between your situation and that
of Hofstede's research sample (within the
same country), and decide how the
differences affect your application of the
model to the target workforce. In particular,
look for
(i) sub cultural differences,
(ii)industry
differences,(iii)differences
arising from the organizational culture.