Chapter 11 Strategu in international business

Question 1

• a plan set of actions that managers employed to make best use of the firms and core competencies to gain a competitive advantage
• managers start by examining the firm specific strengths and weaknesses. they then analyze particular opportunities and threats that confront the firm

Answer 1

Strategy

Question 2

Three key strategic objectives the firm that inspires to become globally competitive must seek

Answer 2

1. Efficiency.
2. Flexibility.
3. Learning.

Question 3

The firm must be efficient international value chains.

Answer 3

Efficiency

Question 4

To accommodate diverse country specific risk and opportunities

Answer 4

Flexibility

Question 5

Balancing exploration (knowledge) and exploitation (existing knowledge)

Answer 5

Learning

Question 6

How to build the global firm

Answer 6

• strategy
• organizational structure
• organizational process
• organizational culture
• visionary leadership

Question 7

A quality of senior management that provides inspirational guidance and motivation to personal, leading the firm to a better future

Answer 7

Visionary leader

Question 8

Four major traits of visionary leaders

Answer 8

1. International mindset and cosmopolitan values.
2. Willingness to commit resources.
3. Strategic vision.
4. Willingness to invest in human assets.

Question 9

The pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adapt

Answer 9

Organizational culture

Question 10

The triple bottom line includes

Answer 10

People, profits, and planet

Question 11

A series of actions or steps that are taken to achieve a particular objective

Answer 11

Organizational processes

Question 12

A specific type of war team in which members come from two or more national or cultural background

Answer 12

Global team

Question 13

An industry in which competition takes place on a country by country basis

Answer 13

Multi domestic industry

Question 14

An industry in which competition is on a regional or worldwide scale

Answer 14

Global industry

Question 15

Describes how internationalizing firms simultaneously seek global integration and local responsiveness

Answer 15

The integration responsiveness (IR) framework

Question 16

Coordination of the firms value chain activities to achieve worldwide efficiency, synergy, and cross fertilization in order to take maximum advantage of similarities between countries

Answer 16

Global integration

Question 17

Many companies seek to respond to conditions in individual countries

Answer 17

Local responsiveness

Question 18

For strategies based on the IR framework

Answer 18

1. Home Replication strategy.
2. Multi domestic strategy
3. Global strategy.
4. Trans. International strategy.

Question 19

• the firm basically replicates what it does in the home country
• firm, distributes products through an intermediary and doesn’t adapt them to local customers

Answer 19

Home replication strategy

Question 20

• managers recognize, and emphasize differences among national markets
• Products and services are adapted to shoot the needs and once of buyers in each country

Answer 20

Multi domestic strategy

Question 21

• why not make the same thing, the same way, everywhere?
• emphasizes central coordination

Answer 21

Global strategy

Question 22

• Combines advantages of multi domestic and global strategies
• standardized feasible; adapt where appropriate

Answer 22

Transnational strategy

Question 23

• Reporting relationships inside the firm that specify the links between people, functions, and processes
• manage international operations

Answer 23

Organizational structure

Question 24

• global integration
• More hierarchal
• top down decision-making

Answer 24

Centralized structure

Question 25

• local responsiveness
• bottom down decision-making
• flat organizational structure

Answer 25

Decentralized structure

Question 26

Different organizational structures

Answer 26

• export department
• international division
• Geographic area structure
• product structure
• functional structure
• Global matrix structure

Question 27

Simplest organizational structure, in which a unit within the firm manages all export operations

Answer 27

Export department

Question 28

Slightly more advanced
- in which all international activities are centralized within one organizational unit, separate from the firms domestic units

Answer 28

International division structure

Question 29

Features control and decision-making that are decentralized to the level of individual geographic regions

Answer 29

Geographic area structure

Question 30

Using the product structure, decision-making and management of international operations are centralized and organized by major product line

Answer 30

Product structure

Question 31

The functional structure, organizes decision-making by functional activity, such as production and marketing

Answer 31

Functional structure

Question 32

Blends the geographic area, product, and functional structures in an attempt to leverage the benefits

Answer 32

Global matrix structure

Question 33

A plan distribution and delivery method of goods or services to a new target market

Answer 33

Market entry strategy