Multinational strategies

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Multinational strategies

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Strategic management in the multinational company

The best general strategy which a company can use in managing its operations is through selling its product at a lower cost. A company like IKEA has used the low-cost strategy by dropping prices of its goods, minimizing transportation and storage costs, and utilizing low-cost manufacturing processes. The approach represents the techniques which the companies sustain and achieve competitive advantage (Cullen &Parboteeah, 2013).

Response posts

In response to the use of low-cost strategy used in the multinational company, I affirm that the use of low cost, is the best mechanism of improving the management in the multinational company, because it not only minimizes the transport and storage costs, but also increases efficiency through sales revenues, and offers lower priced products. Moreover, it also encourages the workers in a company, to make a decision that keeps the headquarters lean (Cullen &Parboteeah, 2013).

In response to the use of low-cost strategy used in a multinational company, I disagree with your post concerning the use of a low-cost approach, as a mechanism of improving the operations of a multinational company. I think that the use of low-cost strategy may drive the multinational companies into losses, due to the high cost involved in the production (Cullen &Parboteeah, 2013).

I think the use of low-cost strategy has an advantageous and disadvantageous approach to management. The advantage is premised on the fact that it helps companies to craft competing plans that aim at attracting more customers. Nonetheless, the plan is disadvantageous because every business enterprise seeks to make a profit; therefore, companies which lower the cost of its products may produce goods which are of low quality to meet the production cost (Cullen &Parboteeah, 2013).

Conversation with Dr. Kirk Fleming

A Summary of the Multinational Strategy

The use of differentiation strategy, resource pro, low-cost strategy, competitive strategies differentiation strategy are examples of a multinational approach(Flemmings, n.d).

Low cost strategy

The use of low-cost strategy involves selling service and goods equal to that of the competitor, to make a profit(Flemmings, n.d).

Multinational diversification strategy

The use of a diverse multinational strategy takes two forms, for example, there is the related diversification where a company controls a small business similar to the central business through sharing of activities, while in unrelated diversification, the company controls diverse business to increase its profits(Flemmings, n.d).

Competitive strategies

The use of competitive strategies involves techniques which aim at directing the service and products of the competitor through adding new products, while resource pro consists of using different resources and strategies such as adding new features and reducing prices(Flemmings, n.d).

The use of an offensive competitive strategy is suitable for the Kirk company because it is a company experiencing rapid growth through the United States (Flemmings, n.d).

If Kirk hired me to train his Chinese employees to become soft and flexible thinkers, I would cover a content which is premised on the adaptation to change. The content can be delivered through seminars and workshops which helps address failures which they may encounter, thus enabling them to become flexible in their thinking (Flemmings, n.d).

Multinational strategies like competitive strategies may influence the workshop training program because it requires employees who are ready to excel by taking risks (Flemmings, n.d).



Cullen, J.B &Parboteeah, K. P. (2013). Multinational Management. A Strategic Approach.

Secondly, watch my conversation with Dr. Kirk Fleming, AVP at ResourcePro: