Strategic Management Fall 2017 / 2018 By: Tarek Mokhtar

Strategic Management / Lecture 22
Strategic Management
Fall 2017 / 2018
By: Tarek Mokhtar

Outline:
Multi-Domestic Strategy
Strategic Analysis… What is it?
When do we apply such strategy?
Social Responsibilities (SR)….What is it? How important it is

and why? Is it part of Strategic Planning? How? Is there any
examples of companies following SR? Give an example.
Multi-Domestic Strategy Defined
Characteristics of a multi-domestic strategy.
 It is a way for a company to customize their products for a
specific country. For instance, a prime example of a multi-
domestic company is a restaurant known for their golden arches
and their hamburgers. This company can be found in a many
countries.
 However, not every country that hosts the golden arches eats
meat. When this large food chain set up business in India, they
customized their menu so that none of their sandwiches
contained meat because of how sacred cows are.
.
Multi-Domestic Strategy Defined
Characteristics of a multi-domestic strategy.
Another major characteristic is that decision-making is not done at one
central location. What this means is that management and other
decision making individuals need to be able to understand the unique
needs and wants of the local customers.
If all decisions were made at one local area, say in the United States,
the needs of other countries might not be met because they are not
located there to see what customers are demanding from their products.
Being located within the walls of the country, decision makers can see
firsthand what customers want. They also can better understand
customs, religious practices, and other situations, both political and legal
that may vary from country to country.
Multidomestic Strategy
 A multi-domestic strategy is an international marketing approach that
chooses to focus advertising and commercial efforts on the needs of a
local market rather than taking a more universal or global approach.
 This means that companies employing this marketing strategy will

seek to understand the culture of various local markets and tailor their
entry into those markets based on the demographics of that area.
 With this approach, a great deal of effort is made to adapt advertising

and presentation to appeal to local sensibilities, rather than using a
mass market approach.
 In order for a multi-domestic strategy to be successful, it
is important to invest a great deal of research into the
various localities where the products are actively
marketed. This can often provide valuable insights into the
nuances of the prevailing culture in an area, which leads
to inspiration on how to present the products to best
advantage.
 By taking the time to learn how to connect with
consumers, it is possible to use the multi-domestic
strategy to create a wide range tactics that can be adapted
to fit markets that share a lot of similarities, while still
customizing the advertising and marketing efforts to
match exactly with the local culture.
 While employing a multi-domestic strategy can be
somewhat costly on the front end, the effort can pay off in
a big way. Assuming the products do in fact capture the
attention and the loyalty of the local populace, those early
efforts can yield returns over a number of years, possibly
even decades. For this reason, any business seeking to
become established and build a loyal client base in a
number of different geographical areas will want to
consider the potential of this particular marketing
strategy.
Strategic Analysis Consists of 4 Points:
1- Analysis of Environment
a. Internal Environment
b. External Environment
S….W…..O…..T…..
2- Strategy Formulation
a. Vision
b. Mission
c. Objectives
d. Strategies
Strategy Implementation
a. Plans
b. Programs
c. Procedures
Strategic Control
a. Evaluation
b. Control
Social Responsibilities:
What is it?
Is it important to be included in your strategic plan? Why?
Let us discuss it in details & Real examples.

DEFINITION of 'Social Responsibility'
Social Responsibility is the idea that businesses should balance
profit-making activities with activities that benefit society; it
involves developing businesses with a positive relationship to the
society in which they operate.
The International Organizational Standardization (ISO)
emphasizes that the relationship to the society and environment
in which businesses operate is "a critical factor in their ability to
continue to operate effectively. It is also increasingly being used
as a measure of their overall performance."
Social Responsibility Concerns
 Not everyone believes that business should have a social
conscience. Economist Milton Friedman stated the “Social
responsibilities of business are notable for their analytical
looseness and lack of rigor."
 Friedman believed only individuals can have a sense of
social responsibility. Businesses, by their very nature, cannot.
Some experts believe that social responsibility defies the
very point of being in business: profit above all else.
Recognizing how important social responsibility is to their customers,
many companies now focus on and practice a few broad categories of
corporate social responsibility (CSR).
1. Environmental efforts: One primary focus of corporate social
responsibility is the environment. Businesses regardless of size have a
large carbon footprint. Any steps they can take to reduce those
footprints are considered both good for the company and society as a
whole.
"European companies have really led the way on environment efforts,
such as green energy usage, eco-friendly office and travel policies, and
ensuring that businesses take a responsibility for controlling if their
net impact is positive or negative," said Richard Stevenson, head of
corporate communications at ecommerce platform.
2. Philanthropy:
Businesses also practice social responsibility by donating
to national and local charities. Businesses have a lot of
resources that can benefit charities and local community
programs.
3. Ethical labor practices:
By treating employees fairly and ethically, companies can
also demonstrate their corporate social responsibility. This
is especially true of businesses that operate in
international locations with labor laws that differ from
those in the United States.
4. Volunteering:
Attending volunteer events says a lot about a company's sincerity. By doing good
deeds without expecting anything in return, companies are able to express their
concern for specific issues and support for certain organizations.
"Ethical labor and volunteering are no-brainers – consumers and partners want to
hear that a business is building something more than just revenues. Even modest
steps such as 'open door days' can be a great way to build links to your community
and reflect that you aim to make valuable, long term impact," Stevenson added.
With millennial now holding buying power majority, the face of consumerism has
changed completely, according to DeeAnn Sims, founder of creative agency, SPBX.
"This new wave of buyers is demanding transparency, and when given the choice,
will almost always choose a brand or product tied to a socially conscious cause
rather than a corporate big name brand," Sims said.
Sims also said that this places CSR at the forefront of modern day business practices.
Questions
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Strategic Management / Lecture 22

Fall 2017 / 2018

By: Tarek Mokhtar

Strategic Analysis… What is it?

When do we apply such strategy?

Social Responsibilities (SR)….What is it? How important it is

 This means that companies employing this marketing strategy will

 With this approach, a great deal of effort is made to adapt advertising

Is it important to be included in your strategic plan? Why?

Let us discuss it in details & Real examples.

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