ABSTRACT
This chapter describes the benefits multinational companies (MNCs) can achieve using global integration or local adaptation. It explains the conflicting pressures of the global-local dilemma faced by international managers in MNCs. The chapter discusses the content of the basic multinational strategies: transnational, international, multidomestic, and regional. It focuses on a multinational strategy by using the diagnostic questions that help MNCs to cope with the global-local dilemma. Before considering more specific applications of the basic multinational strategies, one needs a basic understanding of the value chain. The chapter explores the unique challenges faced by emerging market MNCs when executing multinational strategies. Considering Starbucks’ recent leadership transition, the situation described in the Preview IB Emerging Market Strategic Insight illustrates how even phenomenally successful companies such as Starbucks must carefully select the best strategies to take their products or services international. The IB Emerging Market Strategic Insight shows the delocalization strategy of Nestlé in China, and how Metro works to find the right levels of local adaptation in emerging markets. The diversity and inclusion brief shows the importance of hiring local talent for today's transnational companies. It also considers multinational responses to crises related to risks in an international environment.
