484 Chapter 9

Question 1

Why do Internationalization

Answer 1

because you can
market seeking
asset seeking
brand seeking
resource seeking
because you have to(Strategic response)

Question 2

Entry strategies/ownership structures

Answer 2

Export/import
wholly owned subsidiary
mergers and acquisitions
alliances and joint ventures
licensing
franchising

Question 3

Stage One: Exporting

Answer 3

Most common 1st stage
run by export department
ancillary to domestic business
direct and indirect

Question 4

Stage Two: International Division

Answer 4

Australia, japan, Italy, etc.

Question 5

Stage two: sales subsidiary

Answer 5

overseas sales office
response to market growth
better marketing, sales and service support

Question 6

Stage Three: International Division

Answer 6

Assembly or production of product overseas
requires sophisticated organization structure
corporate decision to invest in international
Capita, equipment, personnel.

Question 7

Stage four: Multinational

Answer 7

serve national or regional market
coordination between H.Q. and local operation
need personnel with expertise

Question 8

Stage Five: Global or Transitional

Answer 8

minimize costs, maximize returns
need depends on industry
requires flexibility and global management perspective
location specific

Question 9

Stage Six: Alliances, joint ventures

Answer 9

leverage combined firm resources
(people, equipment, technology, R&D)
Access to IPR
economies of scale
trust among partners is a challenge

Question 10

Coalition

Answer 10

Short term

Organizational level

Question 11

Cooperation

Answer 11

Short Term

individual level

Question 12

Collaboration

Answer 12

Long term

broad focus

Question 13

Communication

Answer 13

long term

narrow focus

Question 14

Foreign Market Entry

Answer 14

market entry barriers
resources
opportunity in market
strategic goals
industry

Question 15

Licencing

Answer 15

selling the rights to use brand names, technology and other IPR

Question 16

Franchising

Answer 16

contractual rights to use name and business concepts

Question 17

licensing advantages

Answer 17

high profit, low investment

licensee pays for equiptment and facilities

Question 18

licensing disadvantages

Answer 18

loss of control

could become competitors

Question 19

franchising advantages

Answer 19

fast way to enter a market

boost slow economy sales

Question 20

Strategic alliance

Answer 20

companies combine resources, costs, risk, technology and people

Question 21

Joint Venture

Answer 21

two existing companies agree to form a third company

Question 22

Joint venture advantages

Answer 22

avoid market barriers
shared costs and risks
advantageous to smaller local partners

Question 23

joint venture disadvantages

Answer 23

shared profits
joint venture can represent a merging of cultures
equal ownership, power struggles

Question 24

Wholly owned affiliates advantages

Answer 24

all of the profits

complete control

Question 25

wholly owned affiliates disadvantages

Answer 25

greater expense
greater risk
all losses if the venture failes

Question 26

Greenfield approach

Answer 26

build

Question 27

greenfield pros

Answer 27

high control
location economics
can pick location, workers, technology

Question 28

greenfield cons

Answer 28

expensive
time consuming
requires experience
ownership risk

Question 29

acquisition pros

Answer 29

high control
rapid market entry
offers location economics
mgt and staff in place

Question 30

acquisition cons

Answer 30

risky due to ownership
cultural differences
potential buying problems
mgt and staff inherited

Question 31

India

Answer 31

one billion consumers

Question 32

india dance

Answer 32

bollywood dance off

Question 33

india business examples

Answer 33

land rover
Tata
starbucks and tata

Question 34

Doing business in India

Answer 34

shake hands is ok, 
Nameste
not big drinkers
vegetarian
suit and tie
dont be suprised if they wear traditional clothes
be on time
title is important
no touching
point with palm
eat with right hand
bargaining is considered normal
indians are quite accepting of foreigners