Michael_A._Hitt,_R._Duane_Ireland,_Robert_E._Hosk

372 Part 3: Strategic Actions: Strategy Implementation

Figure 11.12 A Distributed Strategic Network

Distributed Strategic Center Firms

Main

Strategic

Center

Firm

ownership of McDonald’s restaurants will reach 90 percent.^110 McDonald’s’ franchising

system is a strategic network. Overall, McDonald’s headquarters serves as the strategic

center firm for the network’s franchisees. The headquarters office uses strategic and

financial controls to verify that the franchisees’ operations create the greatest value for

the entire network.

11-6 Implementing International Cooperative Strategies

Strategic networks formed to implement international cooperative strategies result in

firms competing in several countries.^111 Differences among countries’ regulatory environ-

ments increase the challenge of managing international networks and verifying that, at a

minimum, a network’s operations comply with all legal requirements.^112

Distributed strategic networks are the organizational structure used to manage inter-

national cooperative strategies. As shown in Figure 11.12, several regional strategic center

firms are included in the distributed network to manage partner firms’ multiple coop-

erative arrangements.^113 The structure used to implement the international cooperative

strategy is complex and demands careful attention to be used successfully.