Ethnocentrism
Polycentrism
Geocentrism
Based on political
orientation
Based on
geography
Strategic
Home Country
Orientation/Focus Oriented
Host Country
Oriented
Global Oriented
Function
Finance
Marketing
R&D
Product
Industrial products
Consumer goods
-
Geography
Developing
countries
-
US and Europe
Definition
Based on ethnicity
1-1
The McKinsey 7 S framework or model for
strategic fit was developed over thirty years ago by
strategy consultants McKinsey and in particular Tom
Peters and Robert Waterman, co-authors of the
classic book “In Search of Excellence” to help
implement strategies.
What Is The McKinsey 7 S Framework?
It was originally thought that to implement strategy
you needed to align strategy with structure (and
vice-versa).
This wasn’t enough and McKinsey developed the 7S model to show that a softer set of issues also
needed to be considered when implementing
strategy.
1-2
The 7 S’s are:
•Strategy – how the business intends to create a competitive advantage and
achieve its overall goals.
.
•Structure – the hierarchy of responsibility and accountability within the
organisation and how the business is organised functionally, geographically or by
product-market.
.
•Systems – the way activities and processes get the work of the business done
effectively and efficiently.
.
•Style – the culture of the business and the way the leaders behave towards
customers, employees and other stakeholders. What’s said is much less important
than what’s done.
.
•Staff – the personnel within the business and their individual skills, abilities and
attitudes. Different people are right for different organisations.
.
•Skills – specialist skills that the business has access to through the combination of
systems and staff – think core competences or distinctive capabilities.
.
•Shared values or subordinate goals depending on which version you read – the
core values and beliefs of the business.
1-3
transnational company
A commercial enterprise that operates substantial facili
ties, does business in more than one country and
does not consider any particular country its national
home. One of the significant advantages of a
transnational company is that they
are able to maintain a greater degree of
responsiveness to the local markets where they
maintain facilities.
A transnational corporation (TNC) differs from a traditional
MNC in that it does not identify itself with one national home.
While traditional MNCs are national companies with foreign
subsidiaries,[9] TNCs spread out their operations in many
countries sustaining high levels of local
responsiveness.[10] An example of a TNC is Nestlé who
employ senior executives from many countries and try to
make decisions from a global perspective rather than from
one centralized headquarters.[11] Another example of a
Transnational Corporation is the Royal Dutch
Shell corporation whose headquarters may be in The
Hague, Netherlands but its registered office and main
executive body where the decisions are made is
headquartered in London, United Kingdom.