Global Strategy: Applied Frameworks

Apr 19, 2025

Thinking globally? Use these tools to make smart international decisions.

1. CAGE Distance Framework (Assessing a New Country)

C (Cultural): [ ] Language, religion, values, social norms. (How different are their tastes?)
A (Administrative): [ ] Laws, regulations, political systems, trade blocs. (How easy is it to do business?)
G (Geographic): [ ] Physical distance, borders, transport, climate. (How far is it really?)
E (Economic): [ ] Income levels, infrastructure, resource costs. (Can they afford your product?)
Action: For each target country, score its distance on CAGE. Greater distance = higher cost/risk.

2. Integration-Responsiveness Framework (How to Operate Globally)

Pressures for Global Integration (Standardization):
- Are cost savings from global production/marketing high?
- Are customer needs similar worldwide?
Pressures for Local Responsiveness (Adaptation):
- Are customer needs/tastes very different locally?
- Do local governments have specific demands?
Your Strategy Choice:
- Global: Standardized, cost-efficient (e.g., Intel)
- Multi-Domestic: Localized, adapted (e.g., Unilever’s historical approach)
- Transnational: Both efficient AND responsive (the holy grail, e.g., P&G)

Golden Rule: Don’t assume your home-country strategy will work everywhere. Analyze and adapt!