This presentation analyzes the different strategies adopted by multinational enterprises (MNEs) to coordinate their international operations. It describes international, multi-domestic, global, and transnational strategies, highlighting their strengths and weaknesses. As a case study, it examines Procter & Gamble's strategy over time, from initially using an international approach in the 1930s, to adopting multi-domestic and eventually transnational strategies as it expanded globally. The transnational strategy allows P&G to balance global efficiency with local responsiveness but also poses management challenges to coordinate decision-making across subsidiaries.

1. STRATEGY & STRUCTURE Strengths and Weaknesses of the Multinational Enterprises’ strategies Anne-Charlotte Bazoud Gabrielle Colombier Franziska Guehlcke Marcus Bormann Arnaud Katz

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4. I. Context To be successful in an increasingly globalised world, companies have to enter into new foreign markets and to adapt their strategies.

6. III. Strengths and Weaknesses of the strategies adopted by MNEs

7. Typology of strategies Efficiency Responsiveness Learning Efficiency Learning Responsiveness

8. Typology of strategies LEARNING International strategy « Miniature replica » of parent Centralised decision making I.E. Hilton Carrefour Production and marketing function in each host “ Trying to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies. ”

10. Typology of strategies EFFICIENCY Global strategy Centralised decision making Global integration I.E. Standardized product The wireless industry, the credit card industry (American Express) Dispered value/supply chain “ Strategy focusing on increasing profitability by reaping cost reductions from experience curve and location economies. ”

12. Typology of strategies RESPONSIVENESS Multi-domestic strategy “ Strategic and operating decisions are decentralized to Strategic Business Units in each country to allow products to be tailored to the local market.” De-centralised decision making Local operations I.E. Johnson & Johnson

14. Typology of strategies Transnational strategy EFFICIENCY RESPONSIVENESS LEARNING “ A combination of the multi-domestic and global strategies. Firms seek to achieve both global efficiency and local responsiveness.” Joint decision making Dispersed value chain Flexibility I.E. Verifone, a subsidiary of Hewlett-Packard

16. IV. Case study: Procter and Gamble

19. Case study: Procter & Gamble P&G’s strategies

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