1. Coordination by Standardization. Firms with widely dispersed operations often
standardize the ways that employees do their jobs and deal with customers. Standardization sets
universal rules and procedures that apply worldwide and enforces consistency in performance
of activities in geographically dispersed units. Rules and procedures about how employees
interact (also called formalization) aim to reduce workplace uncertainty and simplify the
exchange of ideas & resources.
2. Coordination by Plan. This type of coordination requires interdependent units to meet common deadlines and objectives. MNEs following a multidomestic strategy may opt to establish objectives and schedules that give interdependent units greater discretion in developing coordination systems. This process is often complicated by the difficulties imposed by distance and cultural differences. Greater expense, time, and possibility of error are inherent in planning across national boundaries.
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