Finical Analyze

1. Microsoft would be plotted between international strategy and global standardization strategy, but closer to global standardization as cost pressures are becoming more intense over time. McDonald’s would be plotted between localization and transnational strategies. McDonald’s has always faced pressure to be locally responsive (because of consumers’ food tastes and local customs) but cost pressures are increasing so a more transnational strategy would be appropriate. Google would be plotted between the international strategy quadrant and the localization strategy quadrant because customer responsiveness is important to their business, and cost pressures are low. Dow Chemicals and Coca-Cola produce commodity-type products, where price competition is intense and where local differentiation is relatively unimportant; thus they will be positioned in the global standardization quadrant. Pfizer is perhaps less likely to experience cost pressures or pressures for local responsiveness so it should fall in the lower left quadrant under international strategy.

2. Global standardization industries are those where the pressures for local responsiveness are low (but not zero) because the product serves universal needs. Cost pressures can be intense and a global strategy is appropriate. Bulk chemicals, pharmaceuticals, television manufacture, personal computers, and airline travel all have these characteristics. In contrast, localization strategy industries are those where pressures for local responsiveness are paramount that is, where the product demands customization for local preferences. Moviemaking, branded food products and fashion retailing also fall toward this end of the spectrum. However, even here the trend is for a shift toward a more global industry. Thus certain foods are becoming much more universal hamburgers, pizza, sushi, french fries whereas Hollywood movies may be helping to create a more uniform global culture by exporting American culture. Fashion...