International Strategy for Car Industry Assignment 2022

QUESTION 3:
1. The most appropriate international strategy for Car industry:
- Global strategy is the most proper of car industry.
- Globalization has brought about the convergence of the best practices in the production system
from both worlds.
- Consolidation of the car industry will continue, this in fact is part of the globalization by the
automobile industry. They have created a concentrated firm structure, whereby the big car
manufacturer will control the business and exert extraordinary power over the small suppliers. At
the same time moved the part production, sub-assembly and final assembly lines close to the
final market, whether regional or local. This study will examine the global strategies adopted by
other car makers and Honda Motor in the context of mergers and acquisitions, managerial
dichotomies and how relevant is corporate social responsibilities to the car maker and their
organizational performances.
2. The most appropriate international strategy for Consumer
goods products industry:
- Most consumer goods companies are multinationals (known as MNCs on a global scale), and
they have the following characteristics when applying the above strategy:
 This company establishes subsidiaries or affiliates in each of its foreign markets and
appoints local managers to operate independently and respond locally.
 Their products and services are tailored to the needs and desires of buyers in each
country.
 Headquarters recognize the differences between national markets, subsidiaries are
permitted to differentiate their products and practices by country.
- The reasons for choosing this strategy include four points:
 Can meet the specific needs of each market more precisely.
 Can respond more swiftly to localized changes in demand.
 Can target reactions to the moves of local rivals.
- One typical example is Unilever. They have successfully applied this strategy on a world scale
in period 1990-2000.Their success like:
 Producing products with good quality from local raw materials.
 Lower product costs through subsidiaries.
- But currently, many companies aim to change to more effective strategies for adding value by
adapting products to each market. The shift to a transnational strategy is one of the trends.
This strategy can be chosen when businesses face great pressure both to reduce costs and
adapt to local conditions.