MGMT3015 Corporate Strategy: Multinationality Model & Communication

This report provides an in-depth analysis of inter-organizational communication within the context of corporate strategy. It begins with a literature review, examining various perspectives on organizational networks and entrepreneurial networking. Identifying a gap in the literature regarding internationalization, the report proposes a Multinationality Model, encompassing multi-domestic, global, and transnational approaches, to enhance inter-organizational communication and improve firm performance. The model emphasizes localization versus standardization, competitive pricing, strategic alliances, and electronic distribution channels. An empirical application of the model is presented through the case study of McDonald's, illustrating the model's relevance and effectiveness in real-world scenarios. The report concludes by assessing the success of the Multinationality Model in achieving effective inter-organizational communication and driving corporate success.

Running head: CORPORATE LEVEL STRATEGY
Corporate Level Strategy
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
1. Research Question..............................................................................................................3
2. Literature Review...............................................................................................................3
3. Proposing a Multinationality Model for the Success of Inter-Organizational
Communication..........................................................................................................................7
3.1. Multinationality Approaches and Strategies...............................................................7
3.2. Dynamics of Inter-Organizational Communication based on the Multinationality
Model9
3.2.1. Localization versus Standardization........................................................................9
3.2.2. Competitive Pricing...............................................................................................10
3.2.3. Formation of a Strategic Alliance (Mergers and Acquisitions).............................10
3.2.4. Channels of Electronic Distribution and Tie Up’s with Local Distributors..........11
4. Empirical Application of the Multinationality Model – The Case of McDonalds...........12
4.1. Localization versus Standardization..........................................................................12
4.2. Competitive Pricing by McDonalds India.................................................................13
4.3. Use of Social Media Channels for Distribution........................................................13
4.4. Engagement with Local Distributors and Suppliers for the Smooth and Efficient
Delivery of Fast Food Services............................................................................................14
Conclusion – Assessing the Success of the Multinationality Model.......................................14
References and Bibliography...................................................................................................15

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Introduction
Inter-organizational communication refers to the process by which the transmission of
information as well as the reception of information takes place between two or more than two
purposeful partners and that too across organizational boundaries. Those involved in the
process of communication may be groups of people, individuals or software or computerized
agents (Shumate et al. 2017). Internationalization and inter organizational communication are
two entities that are connected to one other. When inter-organizational communication takes
place, it usually does so on a global scale, with mergers and acquisitions being drawn up
among or between companies located in different parts of the world (Gronroos 2016). This
paper engages in an in-depth literature review on the dynamics and micro-foundations of
inter-organizational communication. Upon addressing the gaps in the literature reviewed, the
report proceeds to suggest the theoretical model of Multinational communication for
implementation at the corporate strategic level and also provides an empirical application of
this model to demonstrate its relevance and its significance.
1. Research Question
Does a Multinational Corporate Strategy Improve the Performance of a Firm? Understanding
the Dynamics and Micro-Foundations of Inter-Organizational Communication with special
reference to the model of Multinationality
2. Literature Review
Essential Basics of Inter-Organizational Communication
Shumate et al. (2016) have carried out an in-depth study on the subject of inter-
organizational communication wherein the forms, processes and structures associated with
inter-organizational communication have been described by the authors. The authors have

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also indulged in research on how inter-organizational communication is something that is co-
created in an organization and among its stakeholders and how it is generated through the
exchange of messages. It is the argument of Shumate et al. (2016) that, research in the area of
inter-organizational communication is something that has its roots in boundary spanners and
organizational interlocks and also in communication especially when these are
conceptualized as networks. It is further argued by Shumate et al. (2016), that while
conventional theories on the topic of inter-organizational communication have focused a
great deal on sociological and economical explanations, recent theories on the same subject
tend to focus a lot on communication based mechanisms as well as socially constructed
relationships that are established between organizations and the affinity that is associated
with the act of inter-organizational communication. What the authors conclude upon their
research study is that inter-organizational communication may be understood as an umbrella
term for many different organizing acts and entities. Such entities include collaborations,
alliances, consortiums, coalitions, networks, joint ventures, partnerships, as well as
relationships. The organizing acts are those that include networking, contracting, bridging,
collaborating, referring, cooperating, sharing information, co-branding, joint problem solving
and the creation of new knowledge. Finally, it is argued by the researchers that the process of
inter-organizational communication is not something that is limited to only an organization
and its employees but also to the stakeholders of that organization.
Micro Foundations of Organizational Networks
Tasselli et al. (2015), have conducted in depth research on the micro foundations of
organizational networks. The researchers have provided a detailed overview concerning the
operations of such organizational networks and have also outlined a framework for future
research in this particular area. Three theoretical positions have been considered on the part
of the researchers in the course of doing their work. The first of these is what is termed as

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individual agency perspective. According to such a perspective, people by virtue of
independent cognitions and characteristics are seen to shape networks. A network pattern
perspective is also considered by the researchers as well as a co-evolution perspective. The
former suggests that networks form people using structural configuration while the latter
demonstrates that people in their networks and idiosyncracies co-evolve, as do they in their
differentiated structures. The researchers conclude that individual behavior, outcomes and
attitudes are those that cannot be understood fully unless the structure of an organizational
context is considered, and that change and social network structuring within an organization
is something that can seldom ever be understood without first considering the psychology of
all purposive individuals who are involved in the working of the organization. For the
purpose of guiding future research, key research questions have been identified on the part of
the researchers with each question relating to the three different theories or perspectives that
have been used to carry out this study.
Dynamic Process Model for Entrepreneurial Networking in Situations of Uncertainty
Engel et al. (2017), have worked on a dynamic process model with regard to the
subject of entrepreneurial networking in uncertain circumstances or conditions. According to
the researchers all the studies that have been conducted on the subject of entrepreneurial
networking so far are those that have focused a great deal on overly planned as well as
instrumental perspectives. The researchers extend and complement current models of
uncertainty as critical boundary conditions and efforts are made to explain why as well as
how entrepreneurs are seen to carry out networking activities at a time when desired ties are
not capable of being identified well in advance. Dynamic process model of entrepreneurial
networking is something that has been well fleshed out on the part of researchers and
networking has been positioned by the researchers, through this study as an act of
entrepreneurial behavior. Thus, a new perspective of entrepreneurial networking has been

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offered by the researchers through this work, that is a dynamic process model which can be
deployed at a time when entrepreneurial networking activities need to be carried out by
managers of organizations or by business owners under conditions of uncertainty or when a
crisis is looming in the horizon.
Understanding the Specific Dynamics of Inter-Organizational Communication
Heath and Isbell (2017), have focused on understanding the dynamics of inter-
organizational communication, arguing that the process of inter-organizational
communication is one that is quite complex, and that it needs to be studied as a special form
of communication and as a specific style of leadership. The authors also argue that successful
collaborative relationships in the area of inter-organizational communication are those that
are grounded in principles of egalitarian participation and democratic functioning. Finally, an
important argument made by Heath and Isbell (2017), is that inter-organizational
communication is something that requires a specific language of practice in order for it to be
implemented in the desired manner.
Gaps in the Literature Reviewed
The literature that has been reviewed above addresses a number of important areas for
study and consideration as far as the dynamics of organizational networks is concerned.
However, little attention is paid by the scholarship reviewed, to the process of
internationalization or multi-nationalism, an aspect that plays a key role in the
communication that has carried out between or among organizations today, given the fact that
most organizations engaging in business activities with one another are those that are spread
across different parts of the globe (Gronroos 2016).

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3. Proposing a Multinationality Model for the Success of Inter-
Organizational Communication
The Multinationality Model is a model which I believe can assure the success of a firm
and improve its performance by ensuring good and effective inter-organizational
communication in a number of different ways. There are essentially three aspects to the
Multinationality Model that needs to be borne in mind. The first is the multi domestic
approach, the second is a global strategy or a global approach and the third is a transnational
approach (Mukherjee et al. 2018). All of the three approaches are those that can be deployed
interchangeably on the part of multi-national corporations so that such firms can perform to
the best of their ability and ensure a high profit for stakeholders irrespective of the location in
which the operations are being carried out.
3.1. Multinationality Approaches and Strategies
The first aspect of the Multinationality strategy, that is, the multi domestic approach is
one where a global product or a service can be modified in a manner in which it is capable of
meeting local requirements in a successful manner. In other words, the global service or
product is reshaped and marketed in a way in which the product or service is regard to be
acceptable for consumption by the people living in the location where the firm has expanded
its operations to. Such a strategy is one that entails a considerable amount of investment in
both time, as well as financial resources (Mukherjee et al. 2018). A lot of time has to be spent
in understanding what local needs and requirements are, what it is that it is preferred by the
local population with regard to the global service or product that is about to be marketed here
or which is already in the process of being marketed, and how such needs and requirements
of the local people can be met without the firm having to strain its financial resources by too
considerable an extent. The first stage of this strategy entails an investigation into local needs

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and requirements while the second stage involves arriving at methods and solutions for
adapting the global service or product to local needs (Gronroos 2016).
The second strategy of the Multinationality model is of course the global strategy. As per
this strategy, global goods and services are marketed across countries, regardless of the needs
and requirements of the local community (Fey et al. 2016). Such a global strategy is one
which demands that local people conform or adjust their requirements to the nature and type
of the product or service that is being marketed, primarily because the product or service is
global in nature and that its characteristics or basic nature is not capable of alternation if the
product or service is to retain its international character in the first place. While such a
strategy may appear to be a bit risky in the sense that it may not go down well with the local
people in the region or area where the products or services are being marketed, it is an
ambitious strategy that involves convincing local markets and customers in local areas of
operation of an international business that the global products and services are worth making
a purchase of, without any modifications having to be made to their character in order to suit
the needs and requirements of the local population. Such a strategy may or may not work
well at the domestic level (Fey et al. 2016).
The third and final strategy of the Multinationality model is of course the transnational
strategy or approach. Such a strategy is one where global products and services are partly
made to retain their international character while catering to local needs and requirements at
the same given time. This is one of the best strategies for international firms to work with
when engaging inter-organizational communication (Gronroos 2016). If a global firm is to
collaborate with local firms and business ventures for the expansion of its operations, then it
has to try and meet the local requirements as best as it can while making sure that its products
and services retain their global character and appeal as well, leading to huge profit for the
first in the long run. The people in the regions or countries where the global products are

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being marketed are likely to be impressed by the fact that the services that they opt for are
international in character but which also at the same time meets their specific needs, that is,
needs that are unique to the region or country that they belong to. The transnational approach
involves huge investment on part of a global firm but it is likely to reap the greatest rewards
for such a firm in the long run (Mukherjee et al. 2018).
3.2. Dynamics of Inter-Organizational Communication based on the
Multinationality Model
3.2.1. Localization versus Standardization
One of the key aspects of the dynamics of inter-organizational communication, based
on the Multinationality model is the emphasis on localization of products as opposed to
standardization. If inter-organizational business communication is to be carried out using the
internationalization model or Multinationality model, then the organizations will need to
arrive at an understanding as to how the products and services that are being marketed can be
localized well enough to meet the requirements of the local customer base, while ensuring the
standardization of the business process at the same given time (Rani et al. 2015). If the
communication is to reap successful rewards for the collaborators involved in the long run,
then the global services and products will have to be shaped in a way that these are in demand
among the local target customer base but which also do not lose their international appeal,
and retain some kind of international brand value, in order to come across as appealing to the
target customer base among whom the product is being marketed. While localization is
something that is likely to take a lot of time and the investment of plenty of resources, it
forms a key part of the dynamics of inter organizational communication, based on the
Multinationality model. International firms need to modify products and services to local
standards if these products and services are to sell well in such destinations in the long run
(Fey et al. 2016).

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3.2.2. Competitive Pricing
Inter-organizational communication if it is carried out along the lines of the
Multinationality model, is something that will have to focus a great deal on competitive
pricing if the communication is to reap successful rewards for the investment that is made in
the marketing of goods and services. Prices, in spite of the international appear of the
products and services, will have to be kept competitive for the most part, primarily to root out
local competition, that is, the appeal of local companies that are manufacturing and
distributing similar products but for a much lesser price. While this may be a little difficult to
do with regard global products and services that are branded, the prices need to be kept
affordable or within the reach of the target customer base in the regions or countries where
the global firms are carrying out their operations in. If pricing is not competitive, then
operations might result in a substantive loss in revenue for the companies in the long run.
Apart from ensuring that the prices of the global products and services are competitive at all
times, efforts must also be made by the firms involved to raise the matter of discount offers in
their communication, as offering discounts can also attract a wide customer population to the
sale of goods and services (Gronroos 2016).
3.2.3. Formation of a Strategic Alliance (Mergers and Acquisitions)
A global firm that intends on expanding its operations across various countries of the
world needs to enter into mergers and acquisitions with local firms and companies, with the
formation of strategic alliances being an important feature of inter-organizational
communication that is based on the Multinationality model (Fey et al. 2016). When a global
firm merges with a local firm that offers the same products and services as the global firm,
then it is able to meet the needs of the local population a whole lot better, than it would have
been able to as a global firm that was attempting to modify its products and services based on
local needs. A lot of the homework that needs to be done in order to make sure that the

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products and services that are about to be marketed are those that meet the demands of the
local target customer base, will be taken care of on the part of the local firm or company that
the global firm merges with, or which it acquires. The former in this situation will gain all the
expertise and the knowledge that is needed to engage in the manufacture of goods and
services that are global in nature but which also correspond to what it is that the local
population is demanding at present (Mukherjee et al. 2018).
3.2.4. Channels of Electronic Distribution and Tie Up’s with Local
Distributors
Taking recourse to social media channels for the adequate marketing of goods and
services on the part of the international firms is another vital aspect of inter-organizational
business communication based on the Multinationality model. Since the firms are likely to be
headquartered in a certain destination but its operations expand, to many other destinations,
using social media channels for the promotion of goods and service will go a long way in
helping the firms to make such products known to the target customer base in the areas where
it is operating (Gronroos 2016). By using electronic channels of distribution and
communication, international firms can reach out to a very large customer base in a limited
period of time, and reap a huge profit upon doing so, even it if makes its products and
services available at a competitive rate or if it has to offer frequent discounts and rebates to
get its products and services to be liked by the local people of the areas where these are being
marketed. Efforts must also be made by the firms that are involved in business
communication based on the Multinationality model to coalesce with local distributors, as
much as it is possible to do so, allowing the distributors to retain a decent portion of the profit
margin, as local distributors will have a good idea of how the products and service are to be
shipped to local destinations and marketed among the local customer base, far better than
those running the operations of the global firm will have (Rani et al. 2015).

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4. Empirical Application of the Multinationality Model – The Case of
McDonalds
McDonalds is a good example of a firm that has made use of the Multinationality model
in order to expand its operations to different parts of the globe, such as in the country of India
(Pradhan 2018). McDonalds has its chain operating in all important Indian cities and towns
and all the different dynamics of inter-organizational communication with regard to the
Multinationality model can be seen working out clearly when one looks at the operations of
the McDonalds fast food chain in India. McDonalds in India is operational in the capital city
of Delhi, as well as in important metropolises such as Kolkata, Bangalore, Mumbai, Chennai
and Coimbatore (Peggs 2018).
4.1. Localization versus Standardization
McDonalds has modified its burgers and fries to suit the tastes of Indian customers in
particular as a result of which it has managed to do so well for its business here in India. For
this purpose, McDonalds has engaged with local chefs and food specialists, has discovered
that a substantive part of the Indian population is vegetarian and that has introduced a number
of innovative foods like vegetarian burgers, and vegetarian sandwiches that can be easily
consumed by vast sections of the customer base that is averse to eating non vegetarian food.
The vegetarian foods that have been offered by McDonalds have been received very well by
the local Indian population and there is a huge demand for such foods today by the fast food
chain’s target customer base in India (Peggs 2018). The non-vegetarian burgers offered by
McDonalds in India have also been innovated with in order to meet local needs and
requirements, by adding a whole lot of Indian spices and ingredients to these burgers while
retaining the characteristic elements of the McDonalds burger at the same given time. The
localization techniques that have been adopted by McDonalds in India have worked
exceedingly well for the company, as it has managed to introduce and implement such

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techniques without causing any disruption to the standardized business processes of the
company (Peggs 2018).
4.2. Competitive Pricing by McDonalds India
McDonalds India has made its burgers and fries available in the country for a very
standard price, a price that is in keeping with the rates that are offered by local burger and
fast food joints in Indian cities and towns. As a result, it has managed to attract the interest
and the desire of its target customer base in India very well. The local people in India have
felt attracted to and eager to buy McDonalds burgers and fries as they do not have to shell out
an exorbitant sum of money to do so. By sticking to competitive pricing, a key feature of the
dynamics of inter-organizational communication based on the Multinationality model,
McDonalds India has kept its rivals at bay by cooperating with local distributors and
manufacturers to make its burgers and fries accessible at competitive Indian prices (Pradhan
2018).
4.3. Use of Social Media Channels for Distribution
Internationalization requires firms to take recourse to social media channels for the promotion
of its products and services, and McDonalds has managed to do just that to ensure successful
business operations here in India. McDonalds India engages in the widespread use of social
media networks in order to make new additions to its list of products and services known to
its customer base in India. Promotional offers, and discounts and rebates are also announced
vide social media channels on the part of McDonalds India as by doing so, it is able to
communicate successfully its target customer base far more successfully than it could have
through the distribution of leaflets or word of mouth advertising (Pradhan 2018).

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4.4. Engagement with Local Distributors and Suppliers for the Smooth and
Efficient Delivery of Fast Food Services
McDonalds India does engage with local suppliers and distributors in India to ensure that its
burgers, and fries are always produced and made available to customers on time. Distributors
are allowed a cut of the profit margin and suppliers are negotiated with at the best prices so
that it is high quality meat, fish and other ingredients that McDonalds India is able to use in
order to make its burgers and other dishes that are so popular among its target population
(Peggs 2018).
Conclusion – Assessing the Success of the Multinationality Model
The Multinationality model definitely helps firms to be successful in their business
operations overseas as it provides them with the important caveats and strategies that need to
be implemented in order to be successful in their business. Inter-organizational
communication which is usually global in nature, is definitely one that benefits from
international strategies as incorporated under the Multinationality model. Firms that engage
with each other across oceans in order to make products and goods available to a vast
customer base located in more than one country or even in one continent are able to shape
and execute their operations in the best possible way through the use of the Multinationality
model, as is clearly evident from the case of McDonalds in India. The model states how firms
engaging in business operations across nations have to standardize and localize goods and
services, keep pricing competitive, enter into mergers and acquisitions with local firms and
franchises and engage in electronic forms of distribution and promotion in order to cater to an
international customer base in the best possible way, meeting local needs and keeping the
profit high at all times.

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