Strateries
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The rationales of these strategies are the Local responsiveness and the need for globalization. Depends on the characteristic of these elements, different strategies “Global, Transnational and Multi domestic “”are formulated in the conglomerate firms.
With the Global strategy the conglomerates exhibits high degree of global integration and low local responsiveness, from the above industry I wish to quote “pharmaceutical and Movie industries as example for “Global strategy. Because of Pharmaceutical industries product standardization and Inherent stringent control in the Quality of the product, process and procedures manufacturing activities, the subsidiaries in the foreign land are forced to follow the parent company even though they have R & D or production or customer in the overseas. Some more the products are not customized or compromised for satisfying the local responsiveness except the quantity and the price range.
In my view , the strategies and practices in Movie industry are totally different from different parts of the world but in the nutshell mostly they try to standardize their product to the local needs and seldom try to customize to the local responsiveness and this Even applies to Hollywood to the entire local (with respect to the individual countries’) cinema industries. Since the product is standardized and decisions are centralized based on the home market I would like to argue “ Movie industry is the example for the global strategy .So I believe Pharmaceutical industry and Movie industries mostly follows Global strategies.
Multi domestic strategies, these strategies exhibits low level of global integration and high level of local responsiveness, i.e. Policies, procedures, strategies, decisions are decentralized with the respect to the local responsiveness, even product also heavily customized to the local needs and demand. With this context I no need to reinforce, Automobile and Bear industries are the example for this strategies. Because in both industries the products are need to be customized to the local demand. For the automobile industries