international strategy foundation

Question 1

What are non-equity entry modes

Answer 1

export and contractual agreements (licensing/franchising)

Question 2

What are equiti (FDI) entry modes

Answer 2

joint ventures and WOS (green-fields, acquisitions, ..)

Question 3

What if the definition of green field

Answer 3

building a subsidiary from the ground up

Question 4

what is a joint venture

Answer 4

establishing a firm that is jointly owned by two or more otherwise independent firms

Question 5

what is franchising

Answer 5

a form of licensing incl. that the franchisee agrees to abide by strict rules

Question 6

Explain the international business model

Answer 6

Its 5 Vs. Value proposition, value creation, value delivery, value capture and value allocation

Question 7

What are the 5 Ps for strategy - Mintzberg

Answer 7

Plan, ploy, pattern, position, perspective

Question 8

What is the OLI framework

Answer 8

its about understanding why companies choose to do business in foreign countries. O - ownership advantages (competitive advantage, which can be leveraged abroad too) ask: why and when to internationalize, - location specific advantage (benefits of locating value-adding activities outside home) ask: where, - internalization specific advantages (is internalization necessary to generate/use of assets) ask: how to internalitionalize

Question 9

What is the main argument surrounding market entry mode and location influence

Answer 9

Simply looking a the L, location, is not enough to decide entry mode (collaborative or not). It only has some impact. It is not as much about location as assumed

Question 10

What are cognitive bias of decision makers when entering foreign markets

Answer 10

Representative bias (decisions tend to be based on how similar a situation from the past)
Availability bias (judgements are made based on examples available in decision-makers minds. If it worked before we do it again)

Question 11

What is non-market strategies?

Answer 11

It is about non-economic elements -> political arrangements. We say there are 4 pillars. 1) strategic goals (objectives pursued meant to shape public opinion. 2) Strategic options (lobbying, activists). 3) Resources and capabilities (development and use of firm political resources.) 4) institutions: formal and informal