1. The document discusses different types of multinational corporations (MNCs), including transnational corporations, parent enterprises, and foreign affiliates such as subsidiaries and associates. 2. It defines the difference between strategy and tactics, noting that strategy focuses on long-term goals and overall resources while tactics utilize specific resources for shorter-term sub-goals. 3. The document outlines different levels of strategy for companies, including corporate, business, and functional levels.

1. INTERNATIONAL STRATEGIC MANAGEMENT
(SECTION- A)- 2010
1. TYPES OF MNCS: ‐ MAIN THREE TYPES OF MNCS ARE GIVEN BELOW: ‐
(a) Transnational Corp.: ‐ Incorporated or Unincorporated enterprises comprising parent
enterprises and their foreign affiliates.
(b) Parent enterprise: ‐ controls assets of other entities in countries other than its home country,
usually by owning a certain equity capital state (usually 10% or more)
(c) Foreign Affiliate: ‐ Is an incorporated or unincorporated enterprise in which an investor, who is
resident in another economy, owns a stake that permits a lasting interest in the management of
that enterprise, A subsidiary, associate, and branches are all referred to as foreign affiliates.
Subsidiary: ‐ Is an incorporated enterprise in the host country in which another entity
directly owns more than half of the shareholding voting power and has the right to appoint or
remove a majority of the members of the administrative, management, or supervisory body.
Associate: ‐ Is enterprise in the host country in which an investor owns at least 10%but not
more than half of the shareholders voting power.
Branch: ‐ Is a wholly or jointly owned unincorporated enterprise in the host country.
2. Difference between Strategy and Tactics.
Breakdown: The Difference between Strategy and Tactics
Strategy Tactics
Purpose
To identify clear broader goals that advance the
overall organization and organize resources.
To utilize specific resources to achieve
sub-goals that support the defined
mission.
Roles
Individuals who influence resources in the organization. They
understand how a set of tactics work together to achieve goals.
Specific domain experts
that maneuver limited resources into
actions to achieve a set of goals.
Accountability Held accountable to overall health of organization.
Held accountable to specific resources
assigned.
Scope
All the resources within the organizations, as well as broader
market conditions including competitors, customers, and
economy. Yet don’t over think it, to paraphrase my business
partner Charlene Li, “Strategy is often what you don’t do”.
A subset of resources used in a plan or
process. Tactics are often specific tactics
with limited resources to achieve broader
goals.
Duration Long Term, changes infrequently.
Shorter Term, flexible to specific market
conditions.
Methods
Uses experience, research, analysis, thinking, then
communication.
Uses experiences, best practices, plans,
processes, and teams.
Outputs
Produces clear organizational goals, plans, maps, guideposts,
and key performance measurements.
Produces clear deliverables and outputs
using people, tools, time.
3. WHAT ARE THE DIFFERENT LEVELS OF STRATEGY?

2. CORPORATE LEVEL (Which business should we be in?’)
BUSINESS LEVEL (Which product markets should we be in within this business or industry?’)
FUNCTIONAL LEVEL (Target market definition,Product-line depth and breadth, Branding
policies, Product-market development plan,Line extension and product elimination plans)
4. Define strategic intent?
Strategic intent is defined as a compelling statement about where an organization is going, that
brieflyconveys a sense of what the organization wants to achieve in long-term.
It encompasses an active management process that focuses the organization on the essence of
winning. It is stable over time and lengthens the attention span of the company. Because it involves a
broad and long-term target, it should be worthy of the personal attention and commitment of top
management. It creates a sense of urgency and improvement drive.
5. WHAT IS ENVIRONMENTAL SCANNING?
Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and
relationships within an organization’s internal and external environment. It helps the managers to decide the
future path of the organization. Scanning must identify the threats and opportunities existing in the environment.
6. WHAT IS SOCIAL RESPONSIBILITY?
Social responsibility entails developing businesses with a positive relationship to the
society which they operate in.
According to the International Organization for Standardization (ISO), this relationship to
the society and environment in which they operate is "a critical factor in their ability to
continue to operate effectively. It is also increasingly being used as a measure of their
overall performance."
7. What is strategic alliance?
An arrangement between two companies that have decided to share resources to
undertake a specific, mutually beneficial project. A strategic alliance is less involved and
less permanent than a joint venture, in which two companies typically pool resources to
create a separate business entity. In a strategic alliance, each company maintains its
autonomy while gaining a new opportunity. A strategic alliance could help a company
develop a more effective process, expand into a new market or develop an advantage
over a competitor, among other possibilities.
8. What are generic strategies?
Basic approaches to strategic planning that can be adopted by any firm in
any market or industry to improve its competitive performance. The
three fundamental marketing strategiesare: differentiation strategy, focus strategy,
and low cost strategy.

3. 9. Distinguish between Expansion and diversification?
Explansion :- A business strategy in which growth is obtained by increasing the number
of stores or business' product and service offerings in which customers can buy a
company’s new line of product and services or can buy the existing one in the new
stores.
Diversification:-Diversification is a business development strategy allowing a company
to enter additional lines of business that are different from the current products, services
and markets.
10.Why do companies go global?
There can be any reason for a company to global, few can be:-
Domestic markets are well penetrated; share and revenue growth are static
Foreign markets are growing, developing, showing attractive potential
Competitors are investing in new overseas opportunities
Customers are expanding globally and expecting their domestic partners to
follow
Foreign partners offer attractive capabilities, technologies, market access
Costs and regulatory pressures are lower overseas.
11. What is competitive advantage?
An advantage that a firm has over its competitors, allowing it to generate greater sales
or margins and/or retain more customers than its competition. There can be many types
of competitive advantages including the firm's cost structure, product offerings,
distribution network and customer support.
12.What do you mean by transnational strategy?
An international business structure where a company's global business activities are
coordinated via cooperation and interdependence between its head office,
operational divisions and internationally located subsidiaries or retail outlets. A
transnational strategy offers the centralization benefits provided by a global
strategy along with the local responsiveness characteristic of domestic strategies.