CHAPTER 13

1. Strategy
- International strategy:
+ Samsung Electronics is a corporation focused on manufacturing a wide range of
consumer electronics products, including mobile phones, tablets, and televisions,
which are exported globally from South Korea.
+ ​Red Bull is a prime example of an international strategy. The company focuses on
transferring its core competencies from the domestic market to foreign markets where
local competitors lack these capabilities. Red Bull concentrates on building a strong
global brand, employing a unified marketing strategy worldwide. Its products are
essentially the same across all markets, with only minor adjustments to suit local
tastes. The company maintains tight control over research and development (R&D)
and marketing at its headquarters in Austria, while empowering foreign subsidiaries
to adapt certain aspects of their operations to local conditions.
+ As an international streaming service, Netflix operates on a globally integrated
platform accessible in more than 190 countries across the world. Netflix offers a
considerably unified library available to all subscribers except for some restricted
content due to regional regulations. However, they still practice local responsiveness
to some degree by producing local content. Take “Squid Game” or “Money Heist” for
example.
- Global standardization strategy:
+ Apple views the entire world as a single, massive market, offering a standardized
range of products and services to consumers globally. Specifically, Apple has
approached the smartphone market through its flagship iPhone product line. The
company has established a global distribution network, making iPhones available in
most markets worldwide. Moreover, new iPhone releases are often synchronized
across multiple countries, fostering a sense of global unity and anticipation.
+ Microsoft, for instance, offers the same products such as Word and Excel across the
world, with the only modification being translating it to a market’s local language.
- Localization strategy:
+ KFC's global success can be attributed in part to its effective localization strategy. By
tailoring its offerings to suit local preferences, KFC has successfully penetrated
various markets. In India, for example, the menu has been modified to include
vegetarian options to accommodate the country's predominantly vegetarian
population. Additionally, KFC carefully translates its menu and marketing materials
into local languages to enhance consumer connection. In Vietnam, the iconic slogan

1
 "Finger-lickin' good" was translated as "Vị ngon trên từng ngón tay" to better
resonate with Vietnamese consumers.
+ Nestlé and all of the separate brands that fall under its umbrella have a very diverse
product portfolio that varies from one region to another. Furthermore, each regional
branch has a high level of control over its marketing campaigns, product variations,
and operations. Nestlé has mastered local adaptation across the world by developing
completely local flavors that cater to local palates exclusively sold in certain countries
such as Maggi Special Masala in India and Deep Macha KitKat in Japan.
- Transactional strategy:
+ Toyota has adopted a flexible strategy in developing and manufacturing the Toyota
Corolla line. They not only produce standard versions but also create special editions
customized to reflect local demands and preferences.
In the Japanese market, where the Corolla is manufactured and consumed the most,
Toyota focuses on creating standard versions with advanced technology and fuel
efficiency. Features such as hybrid systems and advanced safety technologies are
often integrated to meet the needs of Japanese consumers for efficiency and safety.
However, in other developed markets such as Europe and North America, Toyota
focuses on providing Corolla versions with stylish designs and more features to
attract buyers. At the same time, they also enhance the vehicle's handling and
performance to reflect the sporty and diverse driving preferences of consumers in
these markets.
+ McDonalds, for instance, offers its Big Mac product across all its franchises both
domestically and internationally. Outside of the United States, however, McDonalds
also offers products that can appeal to local customers in foreign markets, such as
India’s Veggie Maharaja Mac or Singapore’s Seaweed Shaker Fries.
CHAPTER 14
1. Control systems: consider the use of Key Performance Indicators (KPIs). These are
measurable values that demonstrate how effectively a company is achieving its key business
objectives. By setting KPIs and tracking progress, organizations can identify areas where they
are falling short. This information can then be used to make changes in how resources are
allocated, leading to improved efficiency.
2. Organizational Structure
● Verticle:
- Centralized:
+ Apple exemplifies a highly centralized approach. Top leadership makes critical
decisions regarding product design, software features, and hardware specifications.
This ensures a meticulously crafted user experience across all Apple devices, from

2
 iPhones to MacBooks. Within this structure, engineering teams function with a clear
hierarchy. Senior leadership dictates project goals and timelines. While some
collaboration exists, individual teams primarily focus on executing these
pre-determined plans.
+ McDonald’s is a prime example of a centralized organizational structure. Decisions,
policies, and processes are primarily determined at the corporate level and then
standardized across its franchises worldwide. This centralization ensures consistency
in product quality, service, and customer experience across locations. McDonald’s
success in achieving operational efficiency on a global scale is often attributed to its
centralized approach.
- Decentralized:
+ Johnson & Johnson employs a decentralized structure, with individual departments
and subsidiaries operating semi-autonomously. This approach allows the company to
adapt its products and marketing strategies to meet the needs of different markets and
industries, such as pharmaceuticals, consumer health, and medical devices. The
company credits its decentralized approach for enabling its global success and
responsiveness to unique market demands.
+ Amazon Web Services (AWS): While Amazon operates with some centralized
decision-making, AWS, its cloud computing arm, follows a more decentralized
approach. AWS teams have significant autonomy to make decisions quickly and
develop services that meet customer demands in various regions. This
decentralization enables AWS to innovate rapidly and respond effectively to
competitive pressures in the cloud industry.
● Horizontal
- Divisional structure: Johnson & Johnson is a good example of this structure. The company
has thousands of products and lines of business. It structures itself so each business unit
operates as its own company with its own president
CHAPTER 15
CHAPTER 16
1. Countertrade
Ví dụ chung (trong sách):
● Saudi Arabia agreed to buy ten 747 jets from Boeing with payment in crude oil, discounted at
10 percent below posted world oil prices.
● General Electric won a contract for a $150 million electric generator project in Romania by
agreeing to market $150 million of Romanian products in markets to which Romania did not
have access.

3
● The Venezuelan government negotiated a contract with Caterpillar under which Venezuela
would trade 350,000 tons of iron ore for Caterpillar earthmoving equipment.
● Albania offered such items as spring water, tomato juice, and chrome ore in exchange for a
$60 million fertilizer and methanol complex.
● Philip Morris shipped cigarettes to Russia, for which it received chemicals that can be used to
make fertilizer. Philip Morris shipped the chemicals to China, and in return, China shipped
glassware to North America for retail sale by Philip Morris.
★ Barter: Person A has two chickens but wants to get some apples; meanwhile, Person B has a
bushel of apples but wants some chickens. If the two can find each other, Person A might
trade one of his chickens for a half-bushel of Person B's apples.
★ Counterpurchase:
- A German company sells $100 million worth of machinery to a Brazilian company.
As part of the deal, the German company agrees to purchase $10 million worth of
Brazilian coffee over the next two years.
- Real-Life Scenario: Boeing has engaged in counterpurchase agreements, where it
sells airplanes to developing countries and agrees to buy locally produced goods like
textiles or agricultural products.
★ Offset:
- A defense contractor sells fighter jets worth $1 billion to India. As part of the offset
agreement, the company agrees to invest 30% of the deal's value in Indian aviation
manufacturing facilities or purchase components from Indian suppliers.
- Real-Life Scenario: Many aerospace companies (like Airbus and Lockheed Martin)
use offsets when selling military equipment to countries that require domestic
economic benefits as part of the deal.
★ Switch Trading: A South African mining company agrees to barter gold for construction
equipment with a Russian firm. However, Russia has excess construction equipment and no
need for gold. A Swiss trading company steps in to buy the gold and pay Russia in cash,
facilitating the exchange.
★ Compensation or Buybacks: A U.S. company provides machinery for a steel plant in China
and agrees to be paid over ten years in the form of finished steel products from the plant.

CHAPTER 17:
1. Country factors
- Clothing brands frequently locate production facilities in lower-wage countries such as
Bangladesh or Turkey, where skilled workers produce high-quality garments
- Ireland's low rate of corporation tax has attracted large multinationals, including Google and
Microsoft, to the country

4
- A business that plans to expand into a new country must consider the local language. If the
local population does not speak or understand the business's primary language, it may need to
invest in translation services or hire local employees who can communicate effectively with
customers. Similarly, religious beliefs and practices can influence consumer behaviour. For
example, a food business expanding into a predominantly Muslim country would need to
ensure its products are Halal.
- Tesla built its Gigafactory in Nevada, USA, due to significant government incentives such as
tax breaks, subsidies, and support for renewable energy initiatives. Similarly, Singapore
attracts high-tech industries by offering grants for R&D and advanced infrastructure.
2. Technological factors affects location decisions
a) Companies like TSMC or Intel choose locations with strong government incentives and
advanced infrastructure (e.g., Taiwan, Arizona) to offset the high fixed costs of establishing
billion-dollar semiconductor plants. Centralizing production in one or very few locations
reduces overhead costs and achieves economies of scale.
Example 2: Pharmaceutical R&D: Due to high R&D costs, pharmaceutical firms set up
research hubs in biotech clusters like Cambridge (UK) or Boston (USA) to leverage existing
infrastructure, skilled labor, and proximity to research institutions.
b) Dell and Lenovo establish multiple assembly plants globally because the minimum efficient
scale for producing PCs (250,000 units annually) is low compared to global demand. This
decentralized approach helps them cater to regional markets efficiently.
Example 2: Automobile Manufacturing: Tesla centralizes production of certain models in
high-output factories (e.g., Gigafactory Nevada) because the minimum efficient scale for cars
is relatively high. However, for local responsiveness, they have additional factories in Europe
(Germany) and Asia (China).
3. Production factors
- Companies producing perishable products like dairy (e.g., Nestlé or Danone) set up
manufacturing facilities close to raw material sources (farms) or major markets to minimize
transportation time and ensure freshness.
Dairy Example: Nestlé’s milk processing plants are located near cattle farms to ensure fresh
milk supply and reduce spoilage.
Bakery Example: Krispy Kreme places production hubs near urban centers to deliver fresh
doughnuts quickly.
- Businesses manufacturing heavy products (e.g., steel or cement) tend to locate close to raw
material sources to reduce transportation costs.
+ Example: Cement Industry: Companies like Lafarge set up plants near limestone
quarries as raw material transportation is costly.

5
 + Example: Steel Industry: ArcelorMittal locates steel plants near mines to minimize
logistics costs for iron ore.
CHAPTER 18:
- Distribution strategy:
+ Strabucks: employs a multichannel distribution strategy to make its products more
accessible to customers. First, the brand has established a global network of direct
stores, creating a physical destination for customers to experience not only
high-quality products but also Starbucks' signature ambiance and service.
In addition, Starbucks has recognized the potential of online channels and developed
a convenient mobile application. This app allows customers to place orders, make
payments, and accumulate rewards points, creating a seamless and interactive
experience with the brand.
Furthermore, Starbucks leverages the popularity of websites and social media
platforms to engage and connect with customers. They use Facebook, Instagram,
Twitter, and their official website to share information about products, events,
promotions, and foster multidimensional interaction with their customer community.
- Communication strategy:
+ Coca-Cola is considered a master in product communication. The company has
employed various marketing strategies to build and maintain a strong brand presence.
In 2011, Coca-Cola launched the "Share a Coke" campaign, replacing its traditional
logo on cans and bottles with the phrase "Share a Coke with," followed by individual
names. This approach created personalization and a strong connection with
customers, encouraging them to share Coca-Cola with family, friends, and loved
ones. The success of this campaign stemmed from the personalized experience, deep
customer engagement, and its ability to spark sharing and interaction on social media,
thereby fostering a large community of Coca-Cola fans.
CHAPTER 19
+ The Ethnocentric Approach: Japanese companies such as Panasonic, Sony, and Hitachi are
good examples of companies that take an ethnocentric approach. Due to a lack of competence
among HCNs and the requirement for corporate communication in the Mastec organisation,
the staffing method for subsidiaries in Thailand, Vietnam, and India adopted an ethnocentric
structure.
A Japanese company sets up an office in the United States and sends a Japanese executive
from their headquarters in Tokyo to staff the new office in Chicago.
+ Polycentric Staffing Policy: For the staffing process of McDonald’s, it can be found that
McDonald’s is adopting Polycentric approach as they are hiring local employees in each
countries. This approach is suitable for McDonald’s because there are different culture and

6
 government policies in every country. By hiring the local employees, these local employees
are able to amend the company strategy and policy according to the local policy and culture.
This helps McDonald's meet the different needs of customers in many countries
A South African company setting up an office in Brazil would hire a Brazilian to fill an open
position.
3M has Americans in key positions at its headquarters, and local managers at some of its
facilities outside the United States.
+ Geocentric Staffing Policy: Google a good example of the geocentric approach to hiring
staff. Google understands that looking for the best talent is not restricted to age, gender,
nationality or even to individual experience, but stems from diversity and individuals'
abilities. In the event that Google has to enter into a partnership agreement with individuals or
companies in a foreign country, nationals of that country who are part of the staff at Google
are expected to take the leadand ensure that the partnership eventually succeeds
A Chinese company might fill a position in their Mexico office with an employee from the
United Kingdom.
● EXPATRIATE: Toyota, Ford, General Motors, Tesla, BMW, and other automakers have
expatriates in some key management positions for their regional offices. Similarly, Pfizer and
other multinational pharmaceutical firms have expatriates in overseas offices.
● TRAINING FOR EXPATRIATE MANAGERS:
+ Cultural:
- Daimler offers workshops on cultural differences. For expatriates heading to India,
training covers topics like family-centric decision-making, the role of religion in daily
life, and the importance of personal relationships in business dealings.
- Google provides immersive cross-cultural training before expatriates move abroad.
For instance, managers relocating to Japan learn about hierarchy in business
interactions, bowing etiquette, and how indirect communication is used in
negotiations.
+ Language:
- Many companies, like PwC, partner with language-learning platforms (e.g., Rosetta
Stone) to allow expatriates to learn at their own pace before and during their
assignment.
- Some firms, like Toyota, provide full immersion language programs. For example, an
expatriate heading to China might spend 2-3 weeks in a Mandarin-speaking
environment before relocating to practice real-world conversational skills.
+ Pratical:
- HSBC offers practical training sessions where expatriates learn about housing,
banking, and transportation in their destination country. For example, those moving to

7
 the UK might receive guidance on opening bank accounts, renting homes, and using
public transit.
- Nestlé provides expatriates with legal and compliance training. Managers moving to
Middle Eastern countries, for instance, are trained on local labor laws, visa
requirements, and customs regulations.
● REPATRIATION OF EXPATRIATES:
+ When expatriates working for Unilever or Procter & Gamble in Asia move back to the United
States or Europe, these consumer goods companies need to help manage the logistics of the
move, including the transportation of the workers’ belongings.
+ Shell provides expatriates and their families with reentry counseling and cultural reintegration
support. This helps employees adjust back to their home-country work culture and personal
life after years abroad, which can often feel unfamiliar.
+ PwC provides family support programs, such as school placement for children or spousal
career counseling, upon the repatriation of expatriates. For instance, an employee returning
from a three-year assignment in the Middle East might receive assistance enrolling their
children in local schools or helping their spouse find employment.
+ Toyota conducts reverse cultural training sessions to help employees readjust to Japanese
corporate culture after working in overseas subsidiaries. For instance, an expatriate returning
from a U.S. branch might undergo a workshop to reacquaint themselves with Japan's
hierarchical work environment.
● PERFORMANCE APPRAISAL: Google has seven performance management of human
resources tools and processes to sustain company performance and growth. The performance
measurements are:
+ annual performance
+ monthly performance check-in
+ Googlegeist survey
+ annual upward feedback survey
+ meritocracy
+ objective and key result (OKR).
The first performance measure is the annual performance review. There will be monthly performance
check-ins for one to one on their working themes such as their career development, coaching, and
personal issues if any. Next, Googlegeist is a regular engagement survey that covers almost everything
to be measured. Annual Upward Feedback Survey is a feedback review from supervisors on their
direct reports which is almost the same as “ 360-degree review”. Meritocracy is compensating people
unequally based on their performance through prizes, bonus and stock equity. The last performance
measure for Google is objectives and key-results that are based on traditional goals such as balance
scorecard.

8
 ● COMPENSATION:
- Airline companies, such as Southwest Airlines, have compensation packages that
prioritize international airline industry standards.
- Fast-food companies, such as Burger King and Wendy’s, have competitive
compensation packages for expatriates in regional corporate positions. These
compensation packages are also designed to reduce problems in the workplace, such
as employee burnout, especially in high-stress jobs.
CHAPTER 20