As discussed in the book and in class, firms operating internationally can follow a 1) international, 2) multidomestic (what the book calls localization), 3) global (what the book calls global standardization), or 4) transnational strategy. These are idealized forms that have a number of characteristics that will be covered in class. Note that the books characterization of one axis being pressures for cost reduction is incorrect. This axis is actually pressures for global integration, and refers to forces requiring companies to be more integrated and coordinated across national boundaries. Thus, cost is not a key aspect of any of these four strategies.
You will research Nestl. You should learn about the firm and consider its strategic orientation (also called strategic pattern and MNE strategy). Go to the companys website and other secondary sources. As you research the company, it may be helpful to look at its main products/services, mission statement, management team home country, and organizational structure, particularly as they relate to international activities. Based on your research, think about which one of the four strategic orientations the firm is focusing on. As typically firms use a combination of strategies, several may fit. As such, each group is being assigned a different strategy.
Groups 1 and 2 will argue that Nestl has multidomestic strategy. Groups 3 and 4 will argue that Nestl has a global strategy. Groups 5 and 6 will argue for a transnational strategy.
There are two components of this assignment: a written and oral component.
Written Component
Each group will submit a typed (11-12 point font, single spaced) one paragraph to one page statement (excluding reference page, group number and group member names) about the firms strategic orientation. In the first sentence, you should state what strategic orientation you are arguing for. Then, use company data and the characteristics of the strategic orientation to justify your view. Use a data-driven approach, drawing on specific evidence you have collected about the firm to justify how all points fit the strategic orientation. For example, the firms organizational structure supports this orientation is not compelling. Instead, explain what aspects of the structure suggest that this structure (and hence the firm) is highly related to one strategic orientation over others. Also, refrain from mentioning company data irrelevant to selecting a strategic orientation such as firm history. Only state information that is relevant to strategic orientations. Be sure to explain why your selected orientation fits better than the other three options given the data you found about the firm and through applying your understanding of the four strategic orientations. Also, please include in-text citations for the information found about the company as well as textbook or class discussion for the strategic orientations.
In summary, the group should include all the following (while excluding any and all information irrelevant to strategic orientations):
1) The groups number with group member names
2) The strategic orientation being argued for
3) Evidence (with in-text citations) that directly support your arguments. Have a minimum of 3 points. Exclude irrelevant information (i.e. information that does not suggest a type of strategic orientation, but is filler or background in nature).
4) Reasoning (with in-text citations) for why other strategic orientations do not fit as well. Have a minimum of 3 points. Again, exclude information irrelevant to strategic orientations.
5) References for all citations in APA format
I am in group 5.
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