Bartlett and Ghoshal (1991) identified four distinct types of multinational corporations (MNCs), which are depicted in the image at the end of this article. These four types can be seen to illustrate, which strategic outlook MNCs have towards managing their subsidiaries, and how these MNCs balance the potential needs of global integration and global differentiation. Each MNC should ideally choose the strategic model that satisfies the needs of the environment, and chose the strategic model that will secure global competitiveness.
The Bartlett & Ghoshal Model indicates the strategic options for businesses wanting to manage their international operations based on two pressures: local responsiveness & global integration
‘Local responsiveness’ =
- Do customers in each country expect the product to be adapted to meet local requirements?
- Do local (domestic competitors) have an advantage based on their ability to be more responsive?
'Global integration’ =
- How important is standardisation…