EVOLUTION OF INTERNATIONAL

BUSINESS & GLOBAL MANAGEMENT

 INTERNATIONAL BUSINESS
VS.
GLOBAL MANAGEMENT

International Business Global Management

STAGES IN THE EVOLUTION OF INTERNATIONAL
BUSINESS & GLOBAL MANAGEMENT

Domestic

Export / International

Multinational / Multidomestic

Global

Transnational
 DOMESTIC
• Operates only within its own
country.
• Uses domestic suppliers.
• Primarily follows domestic
market trends & resources.
• Competitive strategies, plans,
and tactics remain largely
targeted to a domestic audience.
• Caveat: the internet has
blurred the distinction between
domestic & international.
EXPORT / INTERNATIONAL
• Export companies have a
product/service/technology that they
send overseas but whatever they send
is managed by distributors; they have
zero to very few expatriated staff
overseas.
• International companies have a
dedicated international division which
travels frequently to monitor
distribution and sometimes even the
assembly, presentation, and display of
the products they export.
 MULTINATIONAL
•Organizations that own or control
production and/or service facilities in
one or more countries other than the
home country.
• Centralized HQ in the home country
may strictly coordinate operations
throughout all its subsidiaries
worldwide OR choose to grant
varying degrees of autonomy to its
subsidiaries.
• Products may be exported back to
home country, other countries, or
even sold in the host country.
 MULTIDOMESTIC

• A company that has

multidomestic operations
customizes its products to each
country in which it does business.
• The product features are tailored
to the preferences, tastes, lifestyle,
and other unique features that
define the locality where it
operates.
 GLOBAL

•A Global enterprise integrates all

of its units and focuses its marketing
strategies on a worldwide scale.
• The product (or service) then
becomes nearly identical wherever
it is sold (or rendered).
 TRANSNATIONAL

• A transnational enterprise
operates vast facilities and does
business in more than one country.
• All of its units worldwide regularly
coordinate with each other and
with HQ.
• It does not consider any particular
country as its national or home
base.
•Each overseas unit has a great
degree of autonomy and is
programmed to be responsive to
the needs of its host country.