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Unit 4 Strategy Analysis Paper

1363 Words6 Pages

The matrix represents four basic strategies between global integration (vertical axis) and national responsiveness (horizontal axis). Quadrant one represents a global strategy, where the company is focused on economies of scale whit a low price tactic. Quadrant four represents the opposite situation with a multi-domestic strategy. In this case, the company adapts its products to satisfy high demands of differentiation. Quadrant 2 represents an international strategy, where companies take advantage of core competencies that competitors in the local country haven't. Finally, the third quadrant represents a transnational strategy, where needs for integration and differentiation are high (Luthans & Doh, 2015).
After determining which strategy to use, is time to implement it and for that, there are 3 areas to cover. The first one is the location, which country and where in it, the firm will be established. The decision will be based on the opportunities the country offers like raw materials, subsidies, …show more content…

Is critical as an Ecuadorian company to reduce the power of distance inside the company, as well with all the suppliers and customers, showing equality in all the layers. Is also imperative to maintain the Ecuadorian group culture inside the company and transmit that to all suppliers and customers. However, is important to foment individual challenges and objectives. Business concerning the difference in uncertainty avoidance is the most significant. Since British has short term plans, not detailed and Ecuadorians have long term details plans, this can cause planning problems. To solve this the company should focus on short term plans with clear long-term goals and clarify their customers that some process in Ecuador takes longer than the UK due to governmental

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