Based on political orientation Based on geography Ethnocentrism Polycentrism Geocentrism Definition Based on ethnicity Based on political orientation Based on geography Strategic Orientation/Focus Home Country Oriented Host Country Oriented Global Oriented Function Finance Marketing R&D Product Industrial products Consumer goods - Geography Developing countries US and Europe 1-1

What Is The McKinsey 7 S Framework? The McKinsey 7 S framework or model for strategic fit was developed over thirty years ago by strategy consultants McKinsey and in particular Tom Peters and Robert Waterman, co-authors of the classic book “In Search of Excellence” to help implement strategies. What Is The McKinsey 7 S Framework? It was originally thought that to implement strategy you needed to align strategy with structure (and vice-versa). This wasn’t enough and McKinsey developed the 7-S model to show that a softer set of issues also needed to be considered when implementing strategy. 1-2

The 7 S’s are: Strategy – how the business intends to create a competitive advantage and achieve its overall goals. . Structure – the hierarchy of responsibility and accountability within the organisation and how the business is organised functionally, geographically or by product-market. . Systems – the way activities and processes get the work of the business done effectively and efficiently. . Style – the culture of the business and the way the leaders behave towards customers, employees and other stakeholders. What’s said is much less important than what’s done. . Staff – the personnel within the business and their individual skills, abilities and attitudes. Different people are right for different organisations. . Skills – specialist skills that the business has access to through the combination of systems and staff – think core competences or distinctive capabilities. . Shared values or subordinate goals depending on which version you read – the core values and beliefs of the business. 1-3

transnational company A commercial enterprise that operates substantial facilities, does business in more than one country and does not consider any particular country its national home. One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.

A transnational corporation (TNC) differs from a traditional MNC in that it does not identify itself with one national home. While traditional MNCs are national companies with foreign subsidiaries,[9] TNCs spread out their operations in many countries sustaining high levels of local responsiveness.[10] An example of a TNC is Nestlé who employ senior executives from many countries and try to make decisions from a global perspective rather than from one centralized headquarters.[11] Another example of a Transnational Corporation is the Royal Dutch Shell corporation whose headquarters may be in The Hague, Netherlands but its registered office and main executive body where the decisions are made is headquartered in London, United Kingdom.