Why do you think it would make better strategic sense

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Assignment: L'Oréal markets 34 brands of cosmetics, fragrances, and hair care products in 130 countries. The company's international strategy involves manufacturing these products in 42 plants located around the world. L'Oréal's international strategy is discussed in its operations section of the company and in its press releases, annual reports, and presentations. Why has the company chosen to pursue a foreign subsidiary strategy? Are there strategic advantages to global sourcing and production in the cosmetics, fragrances, and hair care products industry relative to an export strategy?
Question: Assume you are in charge of developing the strategy for a multinational company selling products in some 50 countries around the world. One of the issues you face is whether to employ a multidomestic, transnational, or global strategy.

  • If your company's product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy? Why?
  • If your company's product is large home appliances such as washing machines, ranges, ovens, and refrigerators, would it seem to make more sense to pursue a multidomestic strategy or a transnational strategy or a global strategy? Why?

Reference no: EM133305703

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