Effective Strategies in MNEs for Mitigating Conflicting Demands in Case of Global Efficiencies and Local Responsiveness

Running head: INTERNATIONAL BUSINESS STRATEGY
INTERNATIONAL BUSINESS STRATEGY
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1INTERNATIONAL BUSINESS STRATEGY
Topic: Effective strategies in MNEs for mitigating conflicting demands in case of global
efficiencies and local responsiveness.
Introduction
International strategies are used for the development of the business in the
international market and to consolidate their place in the competitive business scenario. In
most of the MNEs, companies are trying to enhance their market by exporting the product at
the initial basis and then approach for the proper movements. There is some merger process
along with the collaboration or franchising to enter the international market. Most of the
companies follow that policy. The entering company needs to maintain some ethical basics
like increase in market size of the nation, economic scale and learning of the nation, and
advantage of the location the business wants to establish (Miska, Stahl and Mendenhall
2013). The approach of marketing also considers the choice of customers and the need for the
product in that particular market. The international business opportunity comes through the
investment that the company initially does to internationalise the business. There are some
same field competitors as well but the technological development and innovative
infrastructure help the new business to make a good ground for them. There are different
strategies in business unit to develop the operating system that encourages market
responsiveness for each country, the new company needs to analyse the process to control the
mannerism to encourage market opportunity of the business.
The thesis statement of the essay highlights the legitimate international business
strategy for new company and the impact of transnational business approach in the global and
local market is also important in this case. The realisation of business in the international
market is important and CSR team of the organisation helps to manage the perspective for the
organisation.

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Conflicting demands of the organisation
Organisation has to deal with some conflicting demands as the innovation and
technologies improvement will be there in other similar companies, so demand for the new
company will be high in order. As enlighten by Sun et al. (2012) increasing institutional
complexity is the first conflict that comes in that case and fragmentary pressure in devolution
to local authorities will be there. The force form the globalised process and change in
business infrastructure is important in that case. The innovative advancement in companies
may challenge the process. Increased market access in targeting country may consider as the
conflicting demand for the organisation (Verbeke and Asmussen 2016). Greater
commoditization of product and services and importance of scale economies is importance to
grab the market in case of business administration. Harmonization of regulation and technical
operating standard is important for the quality standard increase for the organisation. The
wider use of international business approach delivers better opportunity in business by
making their ground.
The effect of the globalised market
The globalisation of business mitigates the territory and advances those products in
international market. The opportunity of globalised business encourages the process
exporting business from one specific nation to another. The choice of customer of that place
is important and trade barriers are relaxed through the process. Technical operating standard
and professional improvement in business help the entire process. As stated by Tregear
(2015) the international strategy helps in case of globalised the business. In case of globalised
business market, company allows making operating standards and equal standard set of
business advancement is there (French et al. 2012). The trade barriers are mitigated and
company allows doing business in different nations. The taste and trade culture of those

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companies are important in that case but the CSR team will take care of that. The
technological advancement and deregulation of barrier in investment are there and quality
standard is maintained throughout the process.
Innovation and changes in the organisation
Innovations are important for business enhancement. Improvement in technological
forces helps the organisation to find some better technologies that initiate some changes in
revenue generation and need for product. The life cycle of products is become shorten by the
use of new technologies as the technologies enhance the use of products and machines. The
rapid diffusion through new technologies is quite common matter and production rates
increase through the process. As mentioned by Ormiston and Wong (2013) the impact of
innovation creates some external pressures on other companies. The innovation will be high
at the end and the process of marketing and manufacturing the product needed to be unique.
As commented by Cavusgil et al. (2014) the product is needed to be important in market
standard and in case of a global market the product should have a range of extent. The
competitive force against other companies will diminish if the quality of the product has the
delivering guts to beat other companies. There are four basic strategies that company based
on in case of international transaction of products. Global strategy, transnational strategy,
International strategy, and Multinational strategy are the four significant strategies that
maintain a high and low graph in pressure for local responsiveness and cost pressure
structure.
Transnational strategy
Transnational strategy is a business approach to selling one product and promotes a
particular product all over the world. This is an approach that most of the companies do for
the retention of their target customers all over the world (Stahl et al. 2012). This is a way to