Chapter 11 Strategu in international business Flashcards
- 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
Strategy
Three key strategic objectives the firm that inspires to become globally competitive must seek
- Efficiency.
- Flexibility.
- Learning.
The firm must be efficient international value chains.
Efficiency
To accommodate diverse country specific risk and opportunities
Flexibility
Balancing exploration (knowledge) and exploitation (existing knowledge)
Learning
How to build the global firm
- strategy
- organizational structure
- organizational process
- organizational culture
- visionary leadership
A quality of senior management that provides inspirational guidance and motivation to personal, leading the firm to a better future
Visionary leader
Four major traits of visionary leaders
- International mindset and cosmopolitan values.
- Willingness to commit resources.
- Strategic vision.
- Willingness to invest in human assets.
The pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adapt
Organizational culture
The triple bottom line includes
People, profits, and planet
A series of actions or steps that are taken to achieve a particular objective
Organizational processes
A specific type of war team in which members come from two or more national or cultural background
Global team
An industry in which competition takes place on a country by country basis
Multi domestic industry
An industry in which competition is on a regional or worldwide scale
Global industry
Describes how internationalizing firms simultaneously seek global integration and local responsiveness
The integration responsiveness (IR) framework
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
Global integration
Many companies seek to respond to conditions in individual countries
Local responsiveness
For strategies based on the IR framework
- Home Replication strategy.
- Multi domestic strategy
- Global strategy.
- Trans. International strategy.
- 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
Home replication strategy
- managers recognize, and emphasize differences among national markets
- Products and services are adapted to shoot the needs and once of buyers in each country
Multi domestic strategy
- why not make the same thing, the same way, everywhere?
- emphasizes central coordination
Global strategy
- Combines advantages of multi domestic and global strategies
- standardized feasible; adapt where appropriate
Transnational strategy
- Reporting relationships inside the firm that specify the links between people, functions, and processes
- manage international operations
Organizational structure
- global integration
- More hierarchal
- top down decision-making
Centralized structure
- local responsiveness
- bottom down decision-making
- flat organizational structure
Decentralized structure
Different organizational structures
- export department
- international division
- Geographic area structure
- product structure
- functional structure
- Global matrix structure
Simplest organizational structure, in which a unit within the firm manages all export operations
Export department
Slightly more advanced
- in which all international activities are centralized within one organizational unit, separate from the firms domestic units
International division structure
Features control and decision-making that are decentralized to the level of individual geographic regions
Geographic area structure
Using the product structure, decision-making and management of international operations are centralized and organized by major product line
Product structure
The functional structure, organizes decision-making by functional activity, such as production and marketing
Functional structure
Blends the geographic area, product, and functional structures in an attempt to leverage the benefits
Global matrix structure
A plan distribution and delivery method of goods or services to a new target market
Market entry strategy
