This document discusses an integration responsiveness framework for global firms and how learning can be incorporated. It notes two challenges for firms: high integration can provide scale efficiencies but may reduce responsiveness to local needs, while aiming for national differentiation can limit scale economies. The framework is an extension of previous models and introduces a dynamic learning element, as customer needs evolve over time requiring constant strategic development. Case studies of P&G show mixed global and local structures to balance these challenges.
3. Two opposite challenges:
High level of integration may offer the firm scale
efficiencies
BUT
May mean low levels of responsiveness of NM
conditions
Global Scale EconomiesVS. National
differentiation
4. In some markets, such as automobilies
[Schlie andYip, 2000], the convergence of
customers needs is far from global, and yet
no longer specific to a single nation either.
5. Extension of previous framework (IR Model)
Learning brings a dynamic element to the
basic IR model
P&G activities in detergents, paper goods.,
had a mixture of structures for integration
and responsiveness (Some subsidiaries
having global mandates, while others
regional and national)
6. Process of learning is always important for
globalization at the firm level.
Firms aim for IR Framework with learning
element in the long-term. (Conditions are
changing (customers needs, desires,
attitudes)) => Constant development of
strategy in foreign markets
![In some markets, such as automobilies
[Schlie andYip, 2000], the convergence of
customers needs is far from global, and yet
no longer specific to a single nation either.](https://image.slidesharecdn.com/jindraandpeter-150605164919-lva1-app6891/85/Jindra-and-peter-4-320.jpg)
