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International model
Definition: An organizational model that is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over the research functionand local product and marketing strategies than is the case in the multinational model.
Advantage: Is that facilitates the transfer of skills and know-how from the parent company to subsidiariesaround the globe.
Disadvantage: It does not provide maximum latitude for responding to local conditions.
Example: Heinz
Multinational Model
Definition: An organization model that consists of thesubsidiaries in each country in which a company does business, with ultimate control exercised by the parent company.
Advantage: Where global efficiency is not required but adapting to local conditionsoffers advantage
Disadvantage: Is higher manufacturing costs and duplication of effort.
Example: Heinken
Global Model
Definition: An organizational model consisting of a company’s overseassubsidiaries and characterized by a centralized decision making and tight control by the parent company over most aspects of worldwide operations; typically adopted by organizations competitive strategy oncost considerations
Advantage: Is designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where themix of costs and skills is most favorable.
Disadvantage: It may be less responsive to consumer tastes and demands in different countries
Example: Sony
Transnational Model
Definition: Anorganicational model characterized by centralizing certain functions in locations that best achieve cost economies; basing other functions in the company’s national subsidiaries to facilitate greater localresponsiveness; and fostering communication among subsidiaries to permit transfer of technological expertise and skills.
Advantage: : It is an approach that enables managers to ‘’think globally but...
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