Global Competitive Pressures and Host Country Demands

Doz, Yves I.; Bartlett, Christopher A.; Prahalad, C. K.
March 1981
California Management Review;Spring81, Vol. 23 Issue 3, p63
Academic Journal
This article examines the problems that multinational companies face when doing business in developing nations and how these issues decrease profitability in some ways. The article presents examples of problems faced by two U.S. corporations by demands made by their host countries and the unique market demands they face. Four management approaches are offered to deal with the pressures of global competition. Most obviously, the international corporation must be able to deal with multicultural demands by having a strong global policy. Managers need to have decision making skills that take not only local customs into account but the overall positioning of the product as well. Optimum organizational structure is presented for flexible decision making.


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