International Business Multinational Strategies and Structures Flashcards
Concerning the Integration Responsiveness framework, what are the 2 main factors that need to be nicely balanced?
Global Integration and Local Responsiveness
What are the 4 factors that are considered in the integration-responsiveness framework?
i) Cost Reduction
ii) Organisational Culture and Identity
iii) Local Demand
iv) Consumer preferences
What is the key differences between centralization and decentralization?
Corporate control vs subsidiary initiatives
What are the 4 multinational strategic choices for MNCs?
i) Home Replication
ii) Localisation (Multi-domestic)
iii) Global Standardisation
iv) Transnational
What are the 4 organisational structures?
i) International Division (Yun Nan Bai Yao)
ii) Geographical Area (Based on regions all over the country)
iii) Global Product Division
iv) Global Matrix
What are the 3 types of international staffing approaches?
i) Ethnocentic Staffing (Home countries - Expatriates manage operations abroad)
ii) Polycentric Staffing ( individuals from host country)
iii) Geocentric Staffing (best individuals regardless of nationality)
What are the 3 types of international Compensation?
i) Ad Hov Compensation Method (Short Term)
ii) Localization method
iii) Balance Sheet method
What is the difference between strategic alliances and acquisitions?
SA are voluntary agreements between firms
Alliances fall into 2 categories; contractual (non-equity) and equity-based
while
Acquisition is equity-based foreign direct investment in which an investor acquires 100% equity of the target
What is a joint venture?
2 or more firms create a legally independent company to share resources and capailities to develop a competitive advantage
What are the 4 factors to consider in a strategic alliance?
i) Partner
ii) Entry Mode
iii) Location
iv) Scope of work
What is a merger?
2 firms agree to integrate their operations on a relatively co-equal basis
There are few TRUE mergers because one firm usually dominates in terms of market share, size, or asset value
What is a competitive action?
a strategic or tactical action that the company takes to build or defend its competitive advantage
What is a competitive response
a strategic or tactical action that the company takes in response to counter the effects of competitors’ action in the market
What is competitive rivalry?
The ongoing sets of competitive responses an actions that firms take to have a competitive advantage in the market
What is competitive dynamics?
The total set of competitive actions and responses taken by firms in a market