Chapter 4 Flashcards
Think Global Act Local
High Pressure for cost and High local response
Transnational
Think Global, Act Local and Geocentric
Global
Think Global Act Global
Ethonocentric
Benefits global integration (pressure for cost) are high and local differences are low
Global
Multidomestic
Thinks Global Acts local
Polycentric
High local response and Low pressure for cost
Multidomestic
When a firm’s competitive position in one country is significantly influences by its position in other countries
Global Strategy
When local differences are substantial, the firm’s strategies must be adapted to meet thee particular conditions of each local market. Cross national diversity
Multidomestic Strategy
The strategy that emphasizes global learning, flow of skills and products offerings should flow not only from headquarters to the foreign subsidiary but also from foreign subsidiary to headquarters.
Transnational Strategy
Meet both high global pressure for cost and high local responsiveness
Transnational
Product Managers at headquarters make product decisions for the global market, input from overseas local subsidiaries is often discouraged
Global Strategy
MNC’s ability to ensure that its various operating units around the world act in accordance with its overall policy in a system- atic, coordinated, and consistent manner
Strategic Control
Four strategies to compete on an international and global scale
Transnational
Global Cost Leadership
Multidomestic
Regional
knowledge can be codified (that is, expressed in words and numbers) and easily communicated and shared in the form of hard data, manuals, codified procedures, or universal prin- ciples.
Explicit Knowledge
knowledge is not easily visible and expressible, making it difficult to share or communicate with others. It consists of the “know-how” or learned skills that result from personal experience, that is, learning by doing.
Tactic/Implicit Knowledge
