“The choice of strategy for a multinational firm must depend upon a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing that strategy (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a localization strategy, others a global or international strategy, and still others a transnational strategy.” Is this statement correct?
Yes, this statement is correct. There is a cost benefit trade off with strategy choice. The cost of structure and controls for different strategies can differ widely. Transnational is usually very high, while localization is quite low. On the other hand, a localization strategy does not confer the many benefits of international, global, or transnational strategies. Remember that the strategy must fit with the competitive environment of the firm and the organizational structure and control system of the form must be consistent with its strategy.
Answer 2: Yes, in terms of the information that any business strategy has its masterminds and its convicts. In any case, expenditures and advantages contrast with each method. While the expenses for confinement methodology are low, the expenses of actualizing a transnational system are higher. Be that as it may, the advantages acquired with every system frequently coordinate their dangers. The decision of system must fit the requirements of each firm, for each firm has diverse issues and objectives. The decision of methodology for a multinational firm should rely on an examination of the advantages of that system as far as esteem formation with the expenses of executing that system.