MG2005 IMPORTANT Flashcards
what are the generic international strategy matrix
- global strategy
- international strategy
- transnational strategy
- multi-domestic localization strategy
what is the international strategy
- involves expanding a company opertaions outside domestic market while maintaing a centralized management approach
- companies may establish partnership or jointp ventures with local business to navigate cultural and regulatory differences
In international strategy what do they typically focus on
- the exporting of product, services ti foregin markets
international strategy centralized or decentralized
however they keep decision making and product development centralised in the home country
international strategy is useful for companies looking for?
Leveraging their resources and capabilities to access new markets without significant adaptations
what is the global strategy
involves the standardization of product, services and market strategies adpating them to their target market.
what is there global strategy main goal
to obtain economies of scale by producing and selling the same thing worldwide
what does the global strategy emphasizes
the importance of efficiency and cost reduction and through centralized decision making , production and distribution
what do global strategy still need to take into account
local responsivness and regulations to ensure market acceptance.
what is transnational strategy
it is a combination of both intenational and global strategies.,
what is the transnational strategy aim ?
to both have global integration and local responsivness
transnational strategy centralised on decentralised
both. It keeps centralised key decision making and core competencies.
Yet keep decentralised market strategies, production development so that they can adapt to each market target.
what does transnational strategy allows
global synergies while also remaining flexible and responsive to the adaptations of the local markets
what is multi-domestic localisation strategy
it involvers the adaptation of products, services and marketing strategies to meet the preferences of the local markets
what does multi-domestic localisation strategy priorities
customization and decentralization
what do multi-domestic localisation strategy establish
they establish separate business units or subsidaries of each target market giving them autonomy to tailor their offering to local markets, cultural norms and regulatory requirements
what is the goal of multi-domestic localisation strategy
to maximiza market shares and competitivness
what is the john dunnings OLI framework
assumes that firms posses ownership specific advantage [o], location specific advantage [L], and internalization advantage [i] that drive their internalization strategies
what is the emphasizes in the OLI framework
emphasizes using resouces from one country to another and considers market
- conditions
-assets
- institutions
-capabilites
OLI Applications
understand why firms invest abroad and how they key their advantages int different places
useful for studying technolofy transfers and differences between devloped and developing economies in international investment
OLI Drawbacks
doesn’t focus on indiviudal factos
social ties
or human capital
does not fully cover complexities of emerging markets and small firms
johanson and vahle’s network internationalization model
it is a model that emphasized the importance of experential knowledge and learning in foreign market.
views internationalization as a process of increasing commitment and involvement over time. It aligns with the notion that firms start, with lower commitment activities [like exports] and progress to higher commitment modes [like FDI]
application of johanson and vahle’s network internationalization model
understanding how firms expand internationally by leveraging relationships.
helps explain the importance of experential knowledge in the internatinalization process
drawback of johanson and vahle’s network internationalization model
relies heavily on the assumption that firms learn and adapt gradually over time.
May not fully acount for rapid internationalization or born-global firms
