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Positioning a business on the Global Integration/Local Responsiveness Grid

Assign a score for each question from 1 to 5 1 A GLOBAL FACTORS To what extent customers have similar demands for functionalities and design across countries To what extent products or services have a high proportion of standards components across countries To what extent customers (or distributors) are themselves operating in different countries and are buying centrally your products or services To what extent significant economies of scale in your industry are important for the cost of the product (i.e. one needs very high volume to obtain low cost) To what extent the speed of introducing new products worldwide is important for competitiveness To what extent the sales of your product or service are based on technical factors or alternatively on cultural factors To what extent experience gained in other courtiers by a sister subsidiary can be successful if applied in other countries To what extent competitors in your industry operate in a standardised way across countries and we successful in doing so Very different 2 3 4 5 Very similar

Low proportion of standard components Buying locally

High proportion of standard components Buying centrally

Low economies of scale

High economies of scale

Speed is not that important Highly cultural

Speed is very important

Highly technical

No great benefits

Yes, highly beneficial

Competitors are localising

Competitors are successful in standardized approaches

To what extent customers Customer behave the same way behaviour is across countries very different J To what extent innovative Low critical activities (R&D, design) mass require concentration of expertise in order to be effective (critical mass) GLOBAL INTEGRATION SCORE Sum of A to J / 10 = . K To what extent pricing can Pricing has to be different from country to be coherent country without introducing across dysfunctionalities borders L To what extent distribution Not so channel management differs different from country to country M To what extent business Not too regulations and contexts different differs from country to country requiring a high degree of local practices N To what extent products or Low services require a high customisation degree of interaction with customers (customization) O To what extent Not so transportation costs or different customer interface are such that local operations are needed LOCAL RESPONSIVENESS SCORE Sum of K to O / 5 =

Customer behave in the same way High critical mass

Pricing can be very different Yes, very different Highly different

High customisation

Local operations are essential

One obtains scores between 1 to 5 and one can position the business on the Grid below. 5

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