I Domestic II International or III Multinational IV Global
Transnational
Strategic Domestically Export-orientated, multi- Multi-national Global
Orientation orientated domestic
against home
competitors
Stage of Initial foreign Competitive positioning Explosion Global
Development investment internationally
Structure Domestic-i.e. Functional of Divisional Worldwide Matrix, transnational functional plus home structure by geographic by
Import/purchasing product or region product
Dept plus Divisionalised
International structure by
geographical region
Market Moderate, Large, multi-domestic Very large, Whole world
Domestic multi-national
Source Adler N. pp. 7-8; in Daft R “Organisational Theory and Design” 6th Edition p.259.
Domestic means the home market, there may be some exports often these ate through agents and the firms does not se itself as anything except a local provider for local tastes.
Multi-domestic means that the firm has different competitive and product design issue sin each of its theatres of operation, sometimes warehouses and offices will be established abroad.
Multination means marketing and production facilities in many other countries and has more than one third of its sales outside the home area. Explosion happens if these take off due to their potential for growth.
Global organisations are interlinked competitively across the world and not just on a domestic-domestic basis.they transcends a single country of origin. Structure is extremely complex and often evolves into an international matrix of geographical scope versus product ranges.
Global firms like Procter and Gamble, Unilever and Matsushita operate in 40-75 countries. The structural problems of holding these together and getting synergistic responses from each are colossal.