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GCS > Global Integration/Local Responsiveness > Flashcards

Global Integration/Local Responsiveness Flashcards

1
Q

What are the four basic strategies to compete in international markets?

A

Global Standardisation
Transnational
International/Home Replication
Localisation/Multidomestic

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2
Q

What is Global Standardisation?

A

Based on standardised products worldwide

Centres on world-wide excellence

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3
Q

What is Transnational (Glocal) strategy?

A

Think globally, act locally

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4
Q

Advantages of transnational strategy?

A
  • Cost effective and locally responsive
  • Promotion of innovation in different subsidiaries
  • Engages in global learning and diffusion of innovation
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5
Q

Disadvantages of transnational strategy?

A
  • Organisationally complex

- Difficult to implement

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6
Q

Advantages of Global Standardisation?

A
  • Strategic goal to pursue a low cost strategy on a global scale
  • Leverages low cost advantages
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7
Q

Disadvantages of Global Standardisation?

A
  • Too much centralised control

- Lack of local responsiveness

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8
Q

What is International/Home Replication strategy?

A

Emphasises replication of home country competencies

Take products produced for domestic market and sell international with minimal local adaptation

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9
Q

Advantages of International/Home Replication strategy?

A
  • Easy to implement

- Leverages home country advantages

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10
Q

Disadvantages of International/Home Replication strategy?

A
  • Lack of local responsiveness

- Foreign customer alienation

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11
Q

What is Localisation/Multi-domestic strategy?

A

Focuses on a number of foreign countries/regions each regarded as a stand-alone local market worthy of attention and adaptation

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12
Q

Advantages of Localisation/Multi-domestic strategy?

A

Max local responsiveness

Local autonomy

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13
Q

Disadvantages of Localisation/Multi-domestic strategy?

A

Duplication costs

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14
Q

What is the integration-responsiveness framework?

A

MNC’s subject to conflicting pressures for cross-border integration and local responsiveness

Explains strategies and organisational settings of MNC’s

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15
Q

Draw the integration-responsiveness framework

A

high | Global | Transnational/Glocal
| Standard- |
| isation | (Global Matrix)
| (GPD) |
|___________ |________
cost reduction | Home | Multi-domestic
| Replication |(Geographic
| (International | Area)
low |___Divison)_ _|__________
low high
local responsiveness

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16
Q

What are the four organisational structures appropriate for each strategy?

A

Global Product Divisions
Global Matrix
International Divison
Geographic Area

17
Q

Match the strategy to the organisational structure

A

Global Standardisation = Global Product Divisions
Transnational = Global Matrix
International/Home Replication = International Divison
Localisation/Multidomestic = Geographic Area

18
Q

Integration-responsiveness framework abbreviated

A

GS (GPD) | TS/Glocal (GM)
_________|______________
HR (ID) | MD (GA)
Local responsiveness

19
Q

What is Global Product Division?

A
  • Treat each product division as stand alone entity
  • Supports global standardisation
  • Full worldwide responsibility for its activities
    e. g. EADS
20
Q

What are the advantages of Global Product Division?

A
  • Attention to cost efficiencies

- Reduction of inefficient duplication in multiple countries

21
Q

What are the disadvantages of Global Product Division?

A

Little local responsiveness

22
Q

What is Global Matrix?

A 
Manager may manage Asia and Product Division 1 
         EU
HQ /
|       \ Asia\_\_O - Manager 
|                     |
|\_\_\_\_\_\_\_\_PD1
|
PD2
23
Q

What are the advantages of Global Matrix?

A
  • Often used to alleviate disadvantages associated with GA + GPD structures
  • Intended to support goals of Trans/Glocal
24
Q

What are the disadvantages of Global Matrix?

A
  • Often difficult to deliver
  • May add layers of management
  • Slows down decision speed and increase costs
  • Whilst not showing significant performance improvement
25
Q

What is International Division structure?

A

Handle all international operations by a division created for control
e.g. Starbucks

26
Q

What are the advantages of International Division?

A

Appropriate for home replication

27
Q

What are the disadvantages of International Division?

A

Problem of coordination

28
Q

What is Geographic Area structure?

A 
Brings workers together in geographical divisions
Country manager stand-alone
Appropriate for localisation strategy
Local responsibilities 
e.g. Avon
29
Q

What determines the success or failure of firms?

A

Combination of

  • Industry based competition (IBV, Porters 5)
  • Firms=specific resources and capabilities (RBV)
  • Institutional conditions (IP, formal and informal)

GCS (4 decks)

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