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Coaltions

In: Business and Management

Submitted By marywanjiru
Words 294
Pages 2
Koza, M. P., Tallman, S. and Ataay, A. (2011), The strategic assembly of global firms: A microstructural analysis of local learning and global adaptation. Global Strategy Journal, 1: 27–46. doi: 10.1002/gsj.4
The article examines the idea of multinational firm as a strategic entity, which is a simpler way of organizing foreign markets through direct investments work of. In 1976, multinational firm was described as a hierarchy with host country subsidiaries adopting products and capabilities of parent firms to local markets. 1989, came the idea of the transnational firm is described as a less bureaucratic firm that has differentiated subsidiary roles and control is mostly based on organizational culture and administrative heritage.

It continues to examine the global multibusiness firm (GMBF), a more appropriate model, incorporates insights of earlier model but also identifies evolving business technologies and managerial management which have changed the strategic face of global business. Strategic assembly involves constructing firms in a forward looking manner with the aim of gaining and maintaining competitive advantage. There are three stages of international firms, multinationals, transnational and global multibussiness.

And finally, the article talks about, more recent concept of transnational firms which has shifted focus of global strategy away from tension between local market and scale based economies. International companies of today are embedded in a turbulent environment which is direction and pace.GMBF construct proposes which are changing the international business environment. It identifies the resources needed so as to gain competitive advantage and also the strategic purpose of the resources. A case study of Renault group and Renault Turkey identifies the nature of relationship and dynamic character of global assembly.

NAME: IRUNGU MARY...

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