International Strategy

Question 1

Q: What factors to consider when choosing a foreign market entry mode?

Answer 1

IMAGEM
home country factors, home environemntal factos, market, production,
commitment factors level of control
attitude and experience goals and objectives
product factors resources and capablieiies

§Goals and objectives of the firm, such as desired profitability, market share, or competitive positioning

§Degree of control desired regarding decisions, operations, and assets involved in a venture

§The firm’s financial, organizational, and technological resources and capabilities (strengths and weaknesses)

Question 2

Q: Avalia Exporting, global sourcing, licensing and franchising, collaborative ventures, equity joint vevnture, whole owned subsidiary regarding control available to the focal over foreign operations, resource commitment, flexibility, risk(not for all types of risk).

Answer 2

imagem

Question 3

What are the advanatges of exporting?

Answer 3

increase overal volume of sales
improve market share
increase economies of scale 
diversify customer base
stabilize sales fluctuations associated with seasonality
minimize the cost 
minimize the risk
maximize the flexibility

Question 4

What are the disavantages of exporting

Answer 4

sensitivie to tarrifs
sensitive to exchange rates
fewer opportunities to learn about customers
may require the firm to learn new capabilities

Question 5

advanatges of licensor

Answer 5

low investment
low effort once established
low involvement
loe-cost initial strategy

Question 6

disadvantage of licensor

Answer 6

limites control oover assets abroad
performance depend on foreign license
runs the risk of creating future competitor

Question 7

advanatges of franchising

Answer 7

low effort once established
low investment
can internationalize quickly to many markets
can leverage franchisee local knowledge

Question 8

disadvantages of franchising

Answer 8

risks losing reputation because it has limited control aroad
risks creating a future competitor
maintaining control can be difficult

Question 9

What’s FDI, green field,

Answer 9

manufacture

maufacture administration and marketing

Question 10

What’s the advantages of collaborative ventures?

Answer 10

help you learn and achieve goals that could have not achieved alone
helps overcome the risk and high costs of international business

Question 11

Why do so many Aliances ad EJV fail?

Answer 11

Incompatibility 
incongruent goals
opportunistic behavior
culture class
assymetry
inadequate management of the alliance /EJV

Question 12

What are 4 Cs of a strategic alliance?

Answer 12

Complementarity
congruent goals
compatibility
change (HOW WILL THE OTHER 3C’S CHANGE OVER THE COURSE OF THE ALLIANCE)

Question 13

What’s liability of foreigness?

Answer 13

china in other markets stereoptype

Question 14

entry mode choice is a choice of what?

Answer 14

firm’s internal strenghts and weaknesses and external environemnt

Question 15

What determines the choice between standardization and adaptation/localization?

Answer 15

global convergence of tastes
need for costs reductions and efficiency
cultural differences
presence of strong local competitors or strong global competitors
availability and differences in distribution channels
local restrictctions

Question 16

What’s 4 choices of strategies when operating globally regarding pressures for local responsiveness
and presurres for global inetgation

Answer 16

GLOBAL STARTEGY-

transnational strategy
-homereplication startegy (home replication markets are not considered a priority, only a way of adding incremental sales, products are not adopted, no information flow back to home

multidomestic strategy

Question 17

what is homereplication strategy and its downsides?

Answer 17

little control over how products are marketed
rely heavily on foreign intermediaries
LIMITS CA ABROAD

Question 18

multidomestic

Answer 18

Local managers operate foreign subsidiaries and have high levelof independece and autonomy to be locally responsive

Products and services are adapted to suit the needs and wants of buyers in each country

Country managers are often nationals of the host country

Knowledge flows between subsidiaries is limited

Question 19

downsides of multidomestical

Answer 19

Strategies cultures business processes can differ considerably between countries and between home country and host country.

Reduced economies of scale

Limited information sharing and learning opportunities

Subsidiaries have little incentive to share knowledge and experience with managers in other locations or in the home country

Inefficiency (operations, marketing, manufacturing etc)

Question 20

downsides of global

Answer 20

Downsides?

o Strategies, cultures, business processes can differ considerably between countries and between home country and host country

o Subsidiaries have little incentive to share knowledge and experience with managers in other locations or in the home country

o Reduced economies of scale

o Limited information sharing, limited learning opportunities

o Inefficiency (operations, marketing, manufacturing etc)

Question 21

What’s transnational staretgy

Answer 21

o To be responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning.

o Combine the major advantages of multidomestic and global strategies, while minimizing their disadvantages. o Standardize where feasible; adapt where appropriate.

Standardize where feasible; adapt where appropriate.

Question 22

downsides of transnational

Answer 22

o To be responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning.

o Combine the major advantages of multidomestic and global strategies, while minimizing their disadvantages. o Standardize where feasible; adapt where appropriate.

Standardize where feasible; adapt where appropriate.