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International Strategic Management > Lecture 5 > Flashcards

Lecture 5 Flashcards

1
Q

How to create competitive advantage

A
  • Market based outside-in models

- Resource based in-side out models

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2
Q

Market based outside-in models

A

Porter type models suggest that a firm must position itself against the 5 external, environmental forces (threat of entrants, substitutes, rivalry, powerful buyers and powerful suppliers)

Competitive advantage comes from the firm’s ability to structure itself against this.

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3
Q

Theory of competitive advantage

A

When the firm can create more value than its rivals and when the rivals cannot replicate the source of value that the firm creates

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4
Q

Resource based inside-out models

A

Focusing on the internal resources of the organisation in considering competitive advantage. Its unique clusters of resources determine profitability

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5
Q

Resources (Amit & Schoemaker, 1993)

A

What the firm has, they are firm-specific but tradeable

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6
Q

Capabilities (Amit & Schoemaker, 1993)

A

What the firm can do with what it has, non-tradeable

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7
Q

3 Characteristics of capablities

A
  • Valuable across multiple markets
  • They are embedded in the organisational routines of the firm
  • They are tacit (can’t be written down)
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8
Q

VRIN framework

A

Framework to evaluate resources

  • Value, must generate value for the firm
  • Rare, ideally unique
  • Inimitable, cannot be copied
  • Non-substitutable, cannot be substituted

They are necessary, but not sufficient for a sustained competitive advantage

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9
Q

Isolating mechanism

A

Refers to the economic forces that limit the extent to which a competitive advantage can be duplicated

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10
Q

There are two types of isolating mechanisms

A
  1. Impediments to imitation (legal restrictions, supperior access to inputs &customers, market size and scal economies)
  2. Early mover advantage (learning curves, reputation and buyer uncertainty, buyer switching costs, network effects)
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11
Q

How to be sustainable

A

A competitive advantage must be underpinned by resources and capabilities that are scarce and imperfectly mobile.

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12
Q

Human resource management

A

A field of theory and practice that deals with decisions related to policy & practice , that together help to shape the relationship between the firm and its employees.

Can be a source of competitive advantage, as it has the most direct influence on the human capital of an organisation.

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13
Q

4 Challenges of strategic human resource management

A
  1. The assignment issue (who will follow a local or global career path)
  2. The expat management issue
  3. The localisation issue (recruit local personnel)
  4. The skills development issue (different managers need different skills)
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14
Q

In the assignment issue, there are 2 options

A
  1. multi-domestic organisation, few global managers that go from place to place
  2. Global design, larger number of managers moving around. They integrate local personnel to aspire to a global career, they offer temporary assignments to other subsidiaries.
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15
Q

6 Major components for policy optimisation in expat management

A
  1. Strategic vision (purpose of the expat)
  2. Selection procedure
  3. Compensation (different prices in different countries)
  4. Tenure (length of the assignment)
  5. Support
  6. Career follow-up (develop career after repatriating)
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16
Q

Seven factors are critical to success in international work assignments

A
  • Tolerance of ambiguity
  • Behavioural flexibility
  • Goal orientation
  • Sociability & interests in other people
  • Empathy
  • Non-judgementalness
  • Meta-communication skills
17
Q

3 Main causes of failure with expats

A
  1. The job (responsibilities, visibility & recognition, support from the HQ, learning)
  2. Family (adaption, education, distance
  3. Local insertion (preparation, culture shock, local acculturation, political/social skills)
18
Q

4 Reactions to culture shock

A
  • Flight, mine is best, I don’t want to participate in yours (The isolated expat)
  • Fight, mine is best and I’ll show you why (The militant expat)
  • Follow, yours is the best (The assimilated expat)
  • Fit, yours is great, so is mine, lets make the most of both (The cosmopolitan expat)
19
Q

What is the reason for the localisation issue

A

There is a need to recruit & motivate local personnel,

  • to maximise local opportunities
  • helps break language barriers
  • reduce costs
20
Q

3 types of managers

A
  • Business managers
  • Country managers
  • Functional managers
21
Q

3 major layers of culture

A
  • Behavioural - observable, manifest
  • Values, beliefs and preferences - explicit/declared
  • Basic assumptions and meanings - invisible, taken for granted
22
Q

6 silent languages (Hall, 1960)

A
  1. Perception of time
  2. Perception of space and social distance
  3. Language of material goods, family and education
  4. The ease with which friendships are made & broken
  5. The means of agreement
  6. The influence of context

International Strategic Management (6 decks)

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