Chapter 12 - Strategy And Organisation In The International Firm Flashcards
Strategy
A planned set of actions that a manager takes to make best use of a firm’s resources and core competencies in order to gain a competitive advantage
Visionary Leadership
A quality of senior management that provides superior strategic guidance for managing efficiency, flexibility and learning
Organisational Culture
The pattern of shared values, behavioural norms, systems, policies and procedures that employees learn and adopt
Organisational Processes
Managerial routines, behaviours and mechanisms that allow the firm to function as intended
Global Team
An internationally distributed group of employees charged with a specific problem-solving or best-practice mandate that affects the entire organisation
Multi-Domestic Industry
An industry in which competition takes place on a country-by-country basis
Global Industry
An industry in which competition is on a regional or worldwide scale
Global Integration
Coordination of the firm’s value-chain activities across countries to achieve worldwide efficiency, synergy and cross-fertilisation, in order to take maximum advantage of similarities between countries
Local Responsiveness
Meeting the specific needs of buyers in individual countries
Home Replication Strategy
An approach in which the firm views international business as seperate from and secondary to its domestic business
Multi-Domestic Strategy
An approach to firm internalisation where headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and peruse local responsiveness
Global Strategy
An approach where headquarters seeks substantial control over its country operations to minimise redundancy and achieve maximum efficiency, learning and integration worldwide
Transnational Strategy
A coordinated approach to internationalisation in which the firm strives to be more responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning
Organisational Structure
Reporting relationships inside the firm that specify the links between people, functions and processes
Export Department
A unit within the firm that is charged with managing the firm’s export operations
International Division Structure
An organisational design activities are centralised within one division in the firm, seperate from domestic units
Geographical Area Structure
An organisational design in which management and control are decentralised to the level of individual geographical regions, whose managers are responsible for operations within their region
Product Structure
An arrangement in which the management of international operations is organised by major product line
Functional Structure
An arrangement in which management of the firm’s international operations is organised by functional activity (such as marketing or production)
Global Matrix Structure
An arrangement that blends the geographical area, product and functional structures to leverage the benefits of a purely global strategy while keeping the firm responsive to local needs
