Page 365 -

CHAPTER 11 • GLOBAL/INTERNATIONAL ISSUES 331

FIGURE 11-1
A Comprehensive Strategic-Management Mode

Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability

Perform
External Audit
Chapter 3

Implement
Generate, Implement
Develop Vision Establish Strategies— Measure
Evaluate, Strategies— Marketing,
and Mission Long-Term and Select Management and Evaluate
Statements Objectives Finance, Performance
Strategies Issues Accounting, R&D,
Chapter 2 Chapter 5 Chapter 9
Chapter 6 Chapter 7 and MIS Issues
Chapter 8

Perform
Internal Audit
Chapter 4

Chapter 11: Global/International Issues

Strategy Strategy Strategy
Formulation Implementation Evaluation
Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40.

distinct national markets, and the climate for international business today is more favorable
than in years past. Mass communication and high technology have created similar patterns
of consumption in diverse cultures worldwide. This means that many companies may find
it difficult to survive by relying solely on domestic markets.
It is not exaggeration that in an industry that is, or is rapidly becoming, global, the
riskiest possible posture is to remain a domestic competitor. The domestic competi-
tor will watch as more aggressive companies use this growth to capture economies of
scale and learning. The domestic competitor will then be faced with an attack on
domestic markets using different (and possibly superior) technology, product design,
manufacturing, marketing approaches, and economies of scale. 2

Multinational Organizations

Organizations that conduct business operations across national borders are called
international firms or multinational corporations. The strategic-management process is
conceptually the same for multinational firms as for purely domestic firms; however, the