Begriffe Flashcards
Porters Diamond Framework
used to explain national competitive advantage. It is analysing why some nations are outperforming others in specific industry
Greenfield operation
involve building new plants and facilities from scratch
Global standardization
the ability to use standardized marketing messaging and campaigns across markets, countries, and cultures.
Multidomestic strategy
an international marketing approach that chooses to focus advertising and commercial efforts on the needs of a local market rather than taking a more universal or global approach.
Transnational strategy
a plan of action whereby a business decides to conduct its activities across international borders. This strategy is invested in overseas operations and assets, connecting them to every nation in which the company operates.
choose the production country with the lowest costs
metric structure difficult to implement because of organizational complexity
multinational enterprise
is an enterprise producing goods or delivering services in more than one country
aces low pressure for both local responsiveness and cost reduction
International strategy
xporting or importing goods and services while maintaining a head office or offices in their home country
a firm sells the same products or services in both domestic and foreign markets. This strategy is advantages when the multinational enterprise faces low pressure for both local responsiveness and cost reduction
CAGE distance framework
identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies. It may also be used to understand patterns of trade, capital, information, and people flows.
winners curse
the party who wins an auction of a commodity of uncertain value with a fair number of bidders typically pays more than the asset is actually worth.
Managerial hubris
form of self delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary
Horizontal integration
a business strategy in which one company acquires or merges with another that operates at the same level in an industry. Horizontal integrations help companies grow in size and revenue, expand into new markets, diversify product offerings, and reduce competition.
Backward integration
Backward integration is a form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that supplies the products or services needed for production.
forward integration
Forward integration is a business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are ahead in the value chain of its industry, this might include among others direct distribution or supply of the company’s products.
credible commitment
commitment in an international strategic alliance concerns a partner’s intention to continue in a relationship and if a partner intends to continue in the relationship and put effort for maintaining the alliance
break-even analysis
break-even analysis is a financial calculation that weighs the costs of a new business, service or product against the unit sell price to determine the point at which you will break even. In other words, it reveals the point at which you will have sold enough units to cover all of your costs
real option perspective
real option gives a firm’s management the right, but not the obligation to undertake certain business opportunities or investments. Real option refer to projects involving tangible assets versus financial instruments. Real options can include the decision to expand, defer or wait, or abandon a project entirely.
Cost leadership
Cost leadership is a business-level strategy employed by companies who wish to gain a competitive advantage by being the lowest-cost producer of a service, production process, or commodity.
is fairly well isolated from threats of powerful suppliers to increase input prices, because it is more able to absorb price increases by accepting lower profit margins
A hostile takeover
A hostile takeover occurs when an acquiring company attempts to take over a target company against the wishes of the target company’s management. An acquiring company can achieve a hostile takeover by going directly to the target company’s shareholders or fighting to replace its management.
related linked strategy
occurs when a firm moves into a new industry that has important similarities with the firm’s existing industry or industries. Because films and television are both aspects of entertainment, Disney’s purchase of ABC is an example of related diversification.
Unrelated diversification
Unrelated diversification occurs when a company enters an industry that bears no significant resemblance to the company’s current industry or industries. Unrelated diversification can help SBU businesses balance their cash flows.
Dogs
hold small market share in a low-growth market, low unstable earnings combined with neutral or negative cash flows
-> havest or divest
cash cows
a product or strategic business unit within the organisation’s mix which is characterised by high market share and low market growth; a Cash Cow produces the revenue required to develop and support less successful or newer products.
Question mark
low market share
high growth market
earnings. low unstable growing
-> hold or increase market share
stars bcg
earnings: high, stable, growing cash flow: neutral relative market share. high market growth high -> hold or invest for growth
SBU
strategic business units
A Research Strategy
is a step-by-step plan of action that gives direction to your thoughts and efforts, enabling you to conduct research systematically and on schedule to produce quality results and detailed reporting.
Human asset specific
It is the management of employees as assets, combining many conceptual elements of an employee’s life cycle through an organization focusing on that people are a company’s most important assets.
Physical-Asset Specificity
Equipment and machinery that produce inputs specific to a particular customer or are specialized to use an input of a particular supplier are examples of physical asset specificity.
Corporate acquisition
Acquisition strategy involves finding a methodology for the acquisition of target companies that generates value for the acquirer. The use of an acquisition strategy can keep a management team from buying businesses for which there is no clear path to achieving a profitable outcome.
licensing
The term licensing agreement refers to a legal, written contract between two parties wherein the property owner gives permission to another party to use their brand, patent, or trademark.
Franchising
Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers.
Joint venture
A strategic joint venture is a business agreement between two companies that make the active decision to work together, with a collective aim of achieving a specific set of goals and increasing each company’s bottom line.
in house
considering you are hiring from within, the organization is able to manage its team and control processes more easily. In contrast, outsourcing increases the amount of time that the consultant would need to understand the issue and the way the organization and the team works, reducing team control.
R&D
An R&D strategy is defined a coherent set of interrelated choices across decision concerning: organizational architecture, processes, people, and project portfolios.
Incumbent firms
Incumbent firms are businesses already established in each market or industry. Advantages. Established firms can achieve internal economies of scale which lower long run average cost and make them more competitive in price terms against potential rivals.
INCREMENTAL INNOVATION
With Incremental Innovation, the new products are only slightly better than previous product or service versions and only in small changes to existing product formulations or service delivery methods.
