MATCHING STRATEGY TO FOREIGN OPERATING ENVIRONMENTS Research Paper - 1

MATCHING STRATEGY TO FOREIGN OPERATING ENVIRONMENTS - Research Paper Example ness are facing, their use of the IR framework must based on managerial perceptions alongside the pressures placed by global integration and the pressures from local responsiveness. In applying international decision making it is essential to base on the capability of transferring and adapting the parent firm’s knowledge or capabilities of the foreign markets. A company planning on conducting its operations outside the borders of its local authority should have a good knowledge of the different trends prevailing in the different international markets. Companies applying international decision making should be able to apply international strategy to influence and control all decisions pertaining to strengths and weaknesses posed by companies operating in the markets they intend in venturing into. This will provide them with a leverage point as they will be able to determine and structure their products and services in such manners that reflect on the needs of foreign markets therefore being able to stand the competition posed by other companies. A good example is that Carrefour which is an international retailer is able to make good international decision making which entails the application of different standardized hypermarkets to venture into different countries where it carries out its activities or business. The best strategy to apply in such occasions where international decision making is required involves the use of International strategy (Cavusgil, Knight, & Riesenberger, 2011). This strategy can be described as a company’s ability to take its strength from the domestic market and use the same strategy in entering or venturing into international strategy. A good example of a company that uses this strategy is Wal-mart supermarket. This is because the company has taken the strategy which it uses on its country base to venture and introduce their goods in other countries yet still succeed in the international markets. Moreover, International strategy