Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGCR > Internation business strategies > Flashcards

Internation business strategies Flashcards

1
Q

strategy

A

an intergrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

competitive advantage

A

firm achieves a competitve advantage by implementing a value-creating strategy that current and potential competitors are not simultaneously implementing/ cannot implement due to cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

above average return

A

return that exceed return that investor expect for a given risk levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

external analysis: 4 assumptions

A
  1. external environment affect how firm choose strategy
  2. similiar competitors will try to implement strategy
  3. resources difference are short lived. long term: everyone has the same resource
  4. strategic decisions makers want to make profit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

external analysis: 5 forces

A 
potential entrants: new entry of competitors 
suppliers: suppliers' bargaining postion
buyers
threats from substitue product/ service 
rivalry from existing firms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

internal analysis: 4 assumption

A
  1. firms acquire different resources
  2. unique in how they use the resources
  3. resources are not mobile between firms
  4. difference resources/ capabilities form the bases of competitive advatage, not their structural characteristic
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

internal analysis: resource based views

A

when firms acquired/ bundle their core competence well, leads to superior value that customers will pay for
VIRIN model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

external analysis: competitive advantage

A

takes offensive/defensive actio ns against the 5 forces

identify/ position/ influence/ anticipate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

internal analysis: competitive advantage

A

competitive advantage are difficult to sustain because core competence can be replicated or substituted
environmental change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

internal analysis: VRIN model

A

V: valuable
R: Rare capabilities
I: hard to imitate. firms might have a historical unique brand name, ambiguous use/cause of competence, socially complex
N: nonsubstitutable capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Cost leadership

A

set of action taken to produce goods/services with the lowest price relative to others and acceptable quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

differentiation

A

integrated sets of actions taken to produce goods or services (at an acceptable cost) that are different in ways that are important to them
appropriate when customer are value differentiated features than cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

cost leadership: key strategy elements

A

scale efficient plants
control of overheads
avoidane of marginal customer accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

cost leadership: resources and organizational requirements

A 
access to capital
process engineering skills
frequent reports
tight cost control 
specialization of jobs & functions 
incentives for quantitative targets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

differentiation : key strategy elements

A 
emphasis on branding
brand advertising
design 
service
quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

differentiation: resource & organization requirements

A 
marketing 
product engineering
creativity
product R&D
qualitative measurement & incentive 
strong cross functional coordination
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

3 sources of competitive advantage in internationalization

A

global efficiencies, multinational responsiveness, flexibility, leveraging competencies/ learning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Competitive advantage: Leveraging competencies & learning worldwide

A

transferring capabilities/ competencies that are not easily imitated/ substitute
transfering distinctive competencies: companies with unique competencies can expand global markets that lack the same competencies
competencies can be created anywhere within multinational operations (subsidiaries/ suppliers/ rivals)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

competitive advantage: global efficiency: 3 subcategory

A

split into 3
location efficiencies
economies of scale
economies of scope

20
Q

global efficiency: location efficiencies

A

base earch value creating activity where most favourable conditions exist (optimize value chain)
factors:
economic/political/ cultural conditions/logistics/factor costs
local skills needed to improve product- locate in industry cluster

21
Q

global efficiency: economies of scale

A

having operations in more than one country increase total volume of production, allowing production facilite

22
Q

global efficiency: economies of scope

A

diversifying portfolio of products to lower cost

23
Q

competitive advantage: multinational responsiveness/flexibility

A

realising international growth through adaptation to local conditions
local taste/ custom/ regulation/ need/demographics/ physical factors

24
Q

2 conflicting pressure on IB strategy

A

global integration and local responsiveness

leads to 4 types of international business strategy

25
Q

pressure for global integration

A

globalization of market
multilateral & regional reduction in trade barriers
if homogenixation of consumer demand, then compete on price
maximize efficiency gains of standardization on homogenous tastes

26
Q

pressure for local responsiveness

A

divergent consumer tastes &preference due to culture, history, nationalism economic distance, distribution channels
host gov. policies: variation in product, service standards, health, environment, financial regulation
optimize effectiveness of addressing heterogenous local demands

27
Q

motive for global integration (7)

A

standardize products & processes to maximize scale, experience and learning effects
capitalize on converging preferences
source materials/inputs
directly engage global rivals
build global image
leverage expanding cross national connectivity
respond to globalization
exploit improvement on global logistic/ communication

28
Q

motives for local responsiveness

A

customize products & services to local preferences/values
promote a local profile/goodwill by supporting national agenda
tap local inputs/ capabilities
adapt to circumstance/environment
accomodate differences in distribution channels& services

29
Q

global strategy

A

firm views world as single market
primary goal is to create standardized products
low cost because value chain is built on location economics, products may be high quality
target global niche
decision are centralized: tight HQ coordination
low pressure for local responsiveness+ high pressure for global integration

30
Q

international strategy

A

applying competencies from home to overseas operation (leveraging competencies)
foreign markets lack these competencies
centralized HQ control
foreign operation led by expatriates from home country
low pressure for local responsiveness+ low pressure for global integration
eg. Apple

31
Q

localization strategy

A

management see overseas operation as portfolio of independent business adapted to national preference & condition
customisation: maximum local responsiveness
separate production, marketing, R&D in each market
decentralization
low experience curve/ location economies
high cost structure
high pressure for local responsiveness & low pressure for global integration
eg. IKEA (changes), Walmart

32
Q

translational strategy

A

complex process of leveraging competencies/ learning world wide
shared decision making- decentralized
balance between concentration for location economies/low cost and dispersion to meet local preferences
high pressure for local responsiveness and global integration
eg. Zara

33
Q

responsiveness vs differentiation

A

differentiation: what makes firms different from others
responsiveness: adapt to local condition
McDo making vegetarian burgers–> responsiveness to indian culture, but not differentiating if everyone else is doing it

34
Q

frugal innovation

A

innovation that aims to radically lower the price for products aiming at bottom of pyramid consumers
more price oriented, but also culture oriented

35
Q

product life cycle

A

new product: product in hom country, export
maturing product: rivals emerged, some production shift to other industrialized countries, some imports to home, others shift production
standardized product: cost is now factor, assembly shift to emerging market, home start primarily import

36
Q

exception life cycle theory

A

luxury good–> low cost, people start doubting it
short life cycle product might not make it low cost stage
product locate near rare specialist, can’t be imported

37
Q

life cycle theory overtaken by globalization aspect

A

simultaneous introduction of product in other parts of the world
offshoring/near shoring/ reshoring
globally dispersed production: components come from different places, assembly in different place
increase number of product/service with global leadership

38
Q

National diamond

A 
competive successful industry arises by interacting with 4 elements 
Factor condition
deman conditions 
related/supporting industries
firm strategy, structure, rivalry

plus maybe chance and governement

39
Q

National diamond: Factor condition

A

basic factors : (must be supported by advance to succeed)
natural resources, climate, location, demographics
advance factor:
communication, skilled labour, research, technology

40
Q

National diamond: Demand condtion

A 
size
sophisication (variety) 
demanding customers (quality)
41
Q

national diamond: related+ supporting industries

A

provide advantage in innovation and upgrading through:
quick/ constant flow of information
ongoing exchange of ideas+innovation
successful industries within a country tend to be grouped into clusters of related industries

42
Q

National diamond: firm strategy, structure and rivalry

A

vigorous domestic rivalry improves a company’s competitiveness
intense competitiveness of japanese markets forces manufacturers to continually developed + fine tune new products

43
Q

national competitive advantage: poltical implication

A

promoting free trade is in home country best interest bc promote rivalry
not always in the short-term interest of the firm
government can’t make their own clusters, but they can help clusters grow

44
Q

national competitive advantage: location implication

A

disperse production activities to countries where they can be performed most efficiently

45
Q

national competitive advantage: first-mover implication

A

invest substantial financial resources in building first mover, or early- mover advantage

46
Q

limitation of national competitive advantage

A

implicit stages model of internalization: become competitive in home market then internationalize
increasingly points on diamonds are virtual rather than domestic
risk becoming rationale for government to side with certain companies

MGCR (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions