Nowadays, companies are becoming global, but its necessary that they act strategically at a local level. How global companies unlock the value of sustainable and profitable growth, balancing the main three tradeoffs of multinationals? What does it take for multinationals to successfully execute global strategies? I have compiled a whole framework, where 6 key tensions are the core, between Headquarters and Subsidiaries. By understanding this framework managers could fine tune their global strategies implementations and leverage from the new globalisation trend: local at a global scale.

1. Making Global Strategies to Work
What does it take for multinationals to successfully execute global strategies?
Identify the right balance between global integration and local responsiveness, while
managing all 6 key tensions according to market conditions, interests and vision. In a
hyper connected world, global scale meets local agility.
World-Scale Innovation
Local Differentiation
Global Efficiency
The tradeoffs
of a
multinational
Global
integration
Regional/local
responsiveness
Sustainable & Profitable Growth
HeadQuarter
Subsidiaries
People Architecture CultureRoutines
Capabilities Resources Values
Centralization
Punishment
Networks
Change management
Product
diversification
Decentralization
Change leadership
Reward
Hierarchy
Market
diversification
Architecture CultureRoutines
Resources Capabilties
Competitive
advantage
Coordination Cooperation
Industry Key Success Factor
Communication
&
Feedback
Communication &
Feedback
Social
Economic
Environmental
Value
Creation
Strategy Implementation and Execution
Due Process
Attitude
Motivation
Purpose
Organizational
Commitment
Compiled by: Felipe Afanador Cortés
Strategy Formulation at a
corporate, business and
functional level
Voluntary execution and
vision/purpose alignment
from a bottom –up
approach. A coalition of
effective people supporting
the strategy and balancing
the tensions at at levels.
6 key tensions