1. 9 Robert Uberman, Multinational Corporations (MNCs)

2. The ADL model – a successful attempt to find a balance between the BCG and McKinsey/GE approaches Based on well established product development model – the product life- cycle one Yet, defining certain guidelines in establishing competitive position of business segments Including market growth and relative market share measures in a list of possible indicators (Max, Hajluf pp. 280-281)

3. Robert Uberman, Multinational Corporations (MNCs) The ADL model – product life-cycle concept (1) Personal vehicles Solar energySpecialized tourism Office software GeneticsBicycles Coal (USA) EmbryonicGrowthMaturityDecline

4. Robert Uberman, Multinational Corporations (MNCs) ADL Model– Product life cycle concept (2) – Evolution of key economic parameters

5. Robert Uberman, Multinational Corporations (MNCs) ADL model – the competitiveness/product life cycle matrix Source: Hax, Majluf, ”Strategic Management”, p. 198, adapted

6. Robert Uberman, Multinational Corporations (MNCs) ADL Model – recommended strategy thrust (selection) Natural growth Selective growth Hold position or withdraw Divest Grow with the industry Find nicheKeep up with leaders Sell out Build slowly market share Hold nicheRenew offerDissolve Build aggressively market share Exploit nicheHold position Each of the strategies prescribed is presented in the model

7. Robert Uberman, Multinational Corporations (MNCs) ADL model – an example of specific recommendations: natural growth – hold position Keep traditional offer and markets Backward integration Process re-engineering Conventional cost cutting Cost efficiency oriented R&D Outsourcing

8. Robert Uberman, Multinational Corporations (MNCs) ADL model - critics Common to the critique of the life cycle approach 4 Porter’s claims: –length of life cycle phases may vary substantially from industry to industry, –sometimes industries’ development don’t follow the model, –MNCs may influence product life cycle (f.e. delaying introduction of new products) –competition may develop differently then assumed in the ADL model.

9. Portfolio approach to a strategy formulation – conclusions – critics Critic of the balanced portfolio approach: –MNCs shall not be treated as a dynamic set of diversified businesses – there must be an unifying factor –preposition of maintaining a balanced portfolio lead to a wave of unjustified mergers and acquisitions –preposition of maintaining a balanced portfolio lead to disregarding potentially profitable projects Robert Uberman, Multinational Corporations (MNCs)