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International Management > Exam 2 > Flashcards

Exam 2 Flashcards

0
Q

Informal international cooperative alliance

A

Usually limited in scope and time, a marriage of convenience, often unknown to competitors, easy to dissolve, no contract required, no legal entity

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1
Q

3 types of alliances

A

Informal international cooperative alliance, formal international cooperative alliance, international joint venture

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2
Q

Formal international cooperative alliance

A

Deeper involvement requiring exchange of proprietary company knowledge and sources, more difficult to dissolve due to contracts, visible to competitors, no legal entity

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3
Q

International joint venture

A

Deep involvement due to requirement of exchange of a lot of stuff, entire separate legal entity

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4
Q

ICA

A

International cooperative alliance

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5
Q

IJV

A

International joint venture

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6
Q

Management structures

A

Dominant parent, shared management, split control management, independent management, and rotating management

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7
Q

Dominant parent management structure

A

One controls or dominates strategic AND operational decision making, usually due to equity stake

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8
Q

Shared management

A

Both parent companies contribute approximately the same number of managers to the alliance organization often due to similar technical contributions

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9
Q

Split control management

A

Partners often share strategic decision making and split functional due to different technologies

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10
Q

Independent management

A

Alliance managers act more like managers from separate firms

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11
Q

Rotating management

A

Key positions rotate among partners

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12
Q

The soft side of alliance management

A

Commitment and trust

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13
Q

Attitudinal commitment

A

Willingness to dedicate resources and face risks to make the alliance work

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14
Q

Calculative commitment

A

More practical and includes alliance partner evaluations, expectations and concerns regarding potential rewards because businesses require tangible outcomes for a relationship to continue

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15
Q

Two types of trust

A

Credibility and benevolent

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16
Q

Credibility trust

A

Confidence that a partner has intent and ability to meet promised commitments

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17
Q

Benevolent trust

A

Confidence that the partner will behave with goodwill and with fair exchange

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18
Q

Export department

A

Created when exports become significant, deals with international sales of all products

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19
Q

Foreign subsidiaries

A

Subunit of multinational located in another country

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20
Q

Types of subsidiaries

A

Minireplica, transnational

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21
Q

Minireplica subsidiaries

A

Scaled down version of parent company, uses same technology and produces same products as parent

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22
Q

Transnational subsidiaries

A

Each subsidiary contributes what it does best/most efficiently anywhere in the world

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23
Q

International division vs world wide geographic structure

A

International division is just one unit of MNC that focuses on the international aspect (not great when company has multiple countries) worldwide geographic structure has a geographical unit for each world region

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24
Q

Worldwide matrix structure

A

Geographic divisions focus more on local responsiveness while product divisions focus on global efficiencies and global products

25
Q

Problems with matrix structures

A

Slow decisions, too bureaucratic, too many meetings, too much conflict

26
Q

Transnational network structure

A

Network of functional, product and geographic subsidiaries dispersed worldwide, consist of dispersed subunits, specialized operations, and interdependent relationships

27
Q

Metanational structure

A

Encourages organizational learning and entrepreneurialism, targets emerging markets

28
Q

Chain of multinational structure

A

Expired departments, product/geographic structure, matrix or transnational network

29
Q

Control system

A

Helps link organization vertically, up and down the hierarchy, basic functions include mess hinging performance of subunits and providing feedback to subunit managers

30
Q

Coordination systems

A

Horizontal organizational links, provide information flows among subsidiaries to for coordination and sharing of best practices

31
Q

6 basic horizontal coordination systems

A

Textual communications, direct contact, liaison roles, task force, full time integrators, teams

32
Q

Types of knowledge

A

Explicit (what to know) tacit (who to know)

33
Q

Global integration solution

A

Conduct business similarly throughout the world

34
Q

Local responsiveness solution

A

Respond to differences in markets/customize to country or regional differences

35
Q

4 broad multinational strategies

A

Transnational, international, multi domestic, regional

36
Q

Transnational strategy

A

BEST LOCATION Top priority is to seek location advantages and gain economic efficiencies from operating worldwide, location advantage of dispersing value chain activities worldwide

37
Q

International strategy

A

GLOBAL selling global products and using similar marketing technique at worldwide

38
Q

Multi domestic strategy

A

LOCAL the company attempts to offer products that attract customers by closely satisfying their cultural needs, emphasis on local responsiveness

39
Q

Regional strategy

A

COMBINATION Managing raw material sourcing, production, marketing, and support activities with in a particular region

40
Q

When to choose a transnational rather than an international

A

Select a transnational when the benefits of dispersing activities worldwide offset the costs of coordinating a more complex organization

41
Q

4 global drivers

A

Markets, cost, governments, and competition

42
Q

4 participation strategies components

A

Exporting, licensing, strategic alliances, foreign direct investment

43
Q

Exporting strategies

A

Passive exporter, indirect exporting and direct exporting

44
Q

Passive exporter

A

Company that treats and fills overseas orders like domestic orders

45
Q

Licensing

A

Contractual agreement between a domestic licensor and a foreign licensee which often generates only low revenues, licensee has valuable patent which licensee pays royalties to use

46
Q

International strategic alliances

A

Cooperative agreements between firms from different countries to participate in business activities

47
Q

FDI

A

Foreign direct investment- companies own and control directly a foreign operation (symbolizes the highest stage of internationalization)

48
Q

2 business models with the internationalization of small businesses

A

Small business stage model, born global firms

49
Q

Small business stage model

A

(6 stage model) passive exporting, export management, export department, sales branches, production abroad, the transnational

50
Q

Born global firms

A

Companies that begin as multinationals at inception and globalize rapidly

51
Q

Global culture

A

Managerial/worker values that view strategic opportunities as global, not just domestic

52
Q

International sales intensity

A

Initial sales/total sales

53
Q

Pros of being a small business

A

Speed

54
Q

Pros of being first movies

A

First to introduce product, innovative, have first access to resources

55
Q

4 types of ecommerce

A

B2C, B2B, C2C, and C2B

56
Q

2 indicators of global presence of ecommerce

A

Secure server, and Internet hosts

57
Q

Secure server

A

An Internet host that allows users to send and receiver encrypted data

58
Q

Internet hosts

A

Computers connected to the Internet with their own IP address

59
Q

2 factors to keep in mind when picking a market

A

Market inefficiencies, and attractive demographic (high literacy rate, Internet population of at least 5%)

International Management (3 decks)

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