Approaches to Internationalisation (BARTLETT & GHOSHAL)

Organisational Characteristics	Multinational	Global	International	Transnational
Configuration of assets & capabilities	Decentralised and nationally self-sufficient	Centralised and scaled globally	Sources of core abilities centralised: others decentralised	Dispersed, interdependent and specialised
Role of overseas operations	Sensing and exploiting local opportunities	Implementing parent-company’s strategies	Adapting and exploiting parent-company’s abilities	Differentiated contributions by national units to integrated worldwide operations
Development & diffusion of knowledge	Knowledge developed and retained within each unit	Knowledge developed and retained at centre	Knowledge developed at centre and transferred to overseas units	Knowledge developed jointly and shared worldwide

XTech supplies to a Global market using global suppliers.

XTech has a single presence in Asia (Tawian), Allied Technologies, with annual turnover of $3M (75% of the value created at XTech).

Allied provide service based on requirement stated by XTech.

Allied is an outsourcing of approx. 12% of XTechs revenue.

Within the Bartlett and Ghoshal model XTech is a Global company.

Recommendation:

Whichever option for expansion into China is chosen, XTech remain Global:

Key success factors and rare resources stem from its unique employee skills and know-how, and its technologies. These should be retained at the home base to avoid weakening these important sources of competitive advantage.