© 2016 Robert M. Grant
www.contemporarystrategyanalysis.com 1
Instructors’ Manual to Accompany Contemporary Strategy Analysis (9h edn. Wiley, 2016)
CHAPTER 12. GLOBAL STRATEGIES AND THE
MULTINATIONAL CORPORATION
Introduction
Given that internationalization and the design of global strategy have been such important management
issues in recent years, most instructors will probably give prominence to this topic in their courses in
strategic management. How many sessions are devoted to global strategy and the management of the
MNC will depend, first, on whether students are a required to take a course in international business in
Class Outline
Introducing the international dimension raises a wide range of strategic management issues, and no single case
will include them all. Hence, instructors need to choose cases on the basis of the issues that they wish to give
the greatest priorities to.
If there is sufficient time available, I like to use two cases: one that that deals with a company extending its
activities abroad (for this purpose I have used are my own cases on Chipotle Mexican Grill, Haier, Outback
In relation to international expansion, I address two questions:
• Under what circumstances can a company extend its competitive advantage from its home market to
In relation to reconciling global strategy with national differentiation case, I address the following questions:
• What are the benefits of global integration in this industry and how significant are they? To what
Cases
Chipotle Mexican Grill, Inc.: The International Challenge (R. M. Grant, Contemporary Strategy
Analysis: Text and Cases, 9th edn., Wiley, 2016)
The case addresses the question of whether Chipotle Mexican Grill can replicate its massive success
within the US in overseas markets and, if so, how? Chipotle’s few international forays have met with
limited success. To what extent is the Chipotle restaurant concept, its strategy, and its business system
Haier Group: Internationalization Strategy (R. M. Grant, Contemporary Strategy Analysis: Text and
Cases, 9th edn., Wiley, 2016)
The rise of Haier from a near-bankrupt, state-owned refrigerator factory in Qingdao, China to become the
world’s biggest domestic appliance company (in terms of units sold) is a remarkable tale of
entrepreneurial leadership by CEO Zhang Ruimin. It has also involved a strategy that flouts most of the
conventional principles of international business expansion. Is Haier’s international success down to its
unconventional strategy or in spite of it? Given its present position and the capabilities it has developed in
the design, manufacture, and marketing
Outback Steakhouse: Going International (Available from the Instructor Companion Site to
Euro Disney: From Dream to Nightmare (Available from the Instructor Companion Site to
advantage, and the complex mode of entry that Disney devised (a joint-venture, licensing contract, and
management contract). The subsequent difficulties of Euro Disney underline the complex cultural issues
that are especially important for international service companies.
Vodafone in 2012: Rethinking International Strategy (Available from the Instructor Companion Site to
In early summer 2012, CEO Vittorio Colao is addressing Vodafone’s continued need to improve its
financial performance. Despite considerable progress since becoming CEO, Vodafone’s leading position
in the world’s market for mobile communications has not translated into outstanding performance. A
critical issue for Colao is the extent to which Vodafone can benefit from its extensive international scope.
The wine industry is particularly interesting for the study of international strategy. International trade in
wine is substantial (not least because wine production is concentrated into a dozen countries in the world).
At the same time, wine drinking customers and preferences are highly differentiated. New World wine
producers – the Australians in particular – have pioneered global strategies (including global brands) in
wine. However, the design and implementation of BRL Hardy’s international strategies face complex
challenges because of the conflicting pressures for globalization and local adaptation.
innovation and new product development through supporting initiatives at the local level. P&G Japan has
developed an innovative system of face cleaning and moisturizing. The challenge is to assess its potential
in other markets and manage its international rollout. This calls for an analysis of the conflicting forces of
globalization and localization within the context of product development in the cosmetics business.
on the challenges of cross-cultural management. The corporate values and management systems of the
Four Seasons group must be reconciled with the national culture of France and the traditions and norms of
the George V.
encounters significant difficulties arising from the need to adapt to national conditions and from the
challenges of integrating overseas acquisitions. The case provides a good introduction to the competitive
advantages offered by global strategies and the need reconcile globalization with national adaptation.