Topic > Wesfarmers Strategic Plan Essay - 810

Multinational Strategy: Organizations adopting a multinational strategy focus on achieving local responsiveness. A product similar to the home country market is developed in a foreign market. The difference between the two products is that the one developed in the foreign market will be customized according to the needs of that market. This leads to a duplication of production facilities for the organization and therefore an increase in operating costs. The foreign market is autonomous and therefore is responsible for its own marketing, research and development and production without any control from the headquarters. As a result, the transfer of skills and expertise from the headquarters to the foreign branch is very rare. This strategy is recommended for organizations that wish to achieve local responsiveness without having the pressure to reduce operating costs.2. International Strategy: Organizations that incorporate an international strategy focus on creating value by transferring skills, competencies, and products to foreign markets that do not possess the same ones. The product offered in the home country market will be similar to the foreign market. The possibility of customizing a product is limited. Headquarters has control over research and development, marketing and product strategy. This type of strategy is recommended where there is pressure to achieve local responsiveness and cost reduction