kfederln's blog for Tenet Healthcare

In this chapter four basic strategies are discussed: international, global, multidomestic, transnational. An international strategy takes a parent company’s knowledge and expertise into foreign markets. Local adaptation is minimal. Global strategy involves the offering of standardized products and services with minimization of manufacturing, R&D, and marketing activities. This strategy utilizes economies of scale, with little to no need for local adaptation. Multidomestic strategy is a decentralization of control, allowing for flexibility in markets and changes in demand. Transnational strategy optimizes the trade-offs associated with learning, local adaptation, and efficiency. Tenet Healthcare has created its Global Business Center in the Philippines, following a transnational approach. It is an optimal location for business services that are used by all units in the US. Otherwise the healthcare industry is not well-suited for international strategizing.