MNE Topic 3 Flashcards

1
Q

why go international
how achieve this

A

build a competitive strategy
undertaking different strategic action

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2
Q

strategic intent goals

A
  1. global scale efficiency (scale & scope)
  2. multinational flexibility/responsiveness (adaptability)
  3. worldwide learning and innovation (R&D and idea sourcing)
  • sometimes simultaneous sometimes contrasting
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3
Q

3 means to achieve a competitive advantage

A
  1. EOS
  2. Economies of scope
  3. National differences
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4
Q

Economies of scale

A

cost adv obtained due to size

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5
Q

Economies of scope

A

cost adv through sharing common certain resources/products

-common distribution channels
-global brand name
-pooling knowledge in different markets
-sharing R&D

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6
Q

National differences

A
  1. culture
  2. tastes
  3. behaviour
  4. local comp
  5. costs
  6. currency stability
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7
Q

Multinational flexibility

A
  • diff market opps from env
  • best one/attractive-> may change
  • understanding & risk
    -risk = policy, economic perf, ER, labour, resources, preferences, comp
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8
Q

worldwide innovation and learning

A

stimuli (trends) -> resources needed (capital/knowledge/tech)

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9
Q

Strategic objectives

A

(WHAT)
1. achieve global scale efficiency
2. implement with locally responsive flexibility
3. develop cross border learning capabilities

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10
Q

global scale efficiency

A

variation between value of output (revenue) over cost of factor

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11
Q

Strategic means

A

(HOW)
1. develop and leverage EOS
2. Sense and respond to national differences
3. Recognise and capture scope economies

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12
Q

MNE Environments

A

diversity of environments & capabilities
multiple learning opportunities = obj worldwide learning

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13
Q

CAGE Distances

A
  1. cultural
  2. administrative
  3. geographical
  4. economic
  • require time and inv management
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14
Q

cultural distance

A

attribute of society from interactions
- values/norms/dispositions
- customs
- foods
- languages
- ethnicities
- religions
- lack of trust

e.g. Heineken crossing differences

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15
Q

administrative distance

A
  • legal framework (Law -> civil, common, religious, pluralistic)
  • political structure
  • currency convertibility/stability
  • trade restrictions (regulatory/practice)
  • judiciary
  • human rights practice/speech freedom
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16
Q

geographical distance

A
  • physical distance
  • lack land border
  • time zones
  • climate/disease env
  • population density
17
Q

three economic distances

A
  • GDP/PPP differences
  • labour & other manufacturing costs
  • financial/Human/infrastructure/knowledge

e.g. Google -> china and russia

18
Q

worth operating internationally?

A
  • make difference to competitive performance of firm
  • how operate internationally is aligned with and strengthen choice of how compete strategically
19
Q

integration/responsiveness matrix

A

global coordination and local adaption

  1. global
  2. transnational
  3. international
  4. multinational
20
Q

strategy

A

making choices (to do and not do)
align choices of how operate
behave with those strategic choices

21
Q

international strategy

A

Exploiting home country innovations abroad

22
Q

global strategy

A

develop global efficiency, via different means
achieve best cost and quality positions for products

23
Q

multinational strategy

A

Differentiate product and service responding to national differences in preference/ industry/gov regulations

24
Q

transnational strategy

A

Manage costs and revenue simultaneously

Efficiency and innovation = important

Innovation- arise in many parts of world

25
Q

concentration of resources for transnational

A

Concentrated at home
- Core tech
- Global account team

Concentrated but not necessarily at home
- World scale production plants (labour intense – lower wage)

26
Q

industry characteristics and strategic choices

A

integration- responsiveness framework

27
Q

limitations of the IR framework

A
  1. strategy choice independent of industry context
  2. strategy can vary over time
  3. matrix org structures often lead to gridlock

-old fashioned

28
Q

amazon integration responsiveness matrix

A
29
Q

is transnational possible

A
  • matrix gridlock
  • flawed decision making
    -> primacy of home base thinking
    -> strength of voice = weight of argument
  • risk of losing control of operations in some countries
30
Q

transnational

A

pursuing simultaneously efficiencies (scope and scale), flexibility, learning globally

integrated network -> managed through matrix structure
business units x functions x geographical areas

31
Q

innovation

A

most important source of comp adv

  • learning from and in world
  • not all knowledge is in 1 place
  • knowledge valueless unless applied
  • cost of distance = falling rapidly
  • prospect for untapped knowledge sources globally
  • create knowledge through experimentation
  • connect and leverage knowledge sources

sensing + mobilising + applying

32
Q

metanational

A

beyond transnational

  1. develop flexibility
  2. multiple innovation processes - local central, global
  3. balance multiple perspectives
33
Q

how to develop flexibility - 4 ways

A
  1. specialised roles
  2. special teams
  3. introduce boundary - spanning roles
  4. disperse responsibilities (empower people to act)
34
Q

3As strategy

A
  1. Aggregation
  2. Arbitrage
  3. Adaptation
35
Q

Aggregation

A

pursuit of increased scale
to achieve greater efficiencies (sourcing) or effectiveness (brand recognition)

36
Q

arbitrage

A

pursuit of flexibility in sourcing and mkt access
increase competitive adv (adjust balance of supplies from diff countries depending on exchange and logistics rates)

37
Q

adaptation

A

pursuit of insight and innovation from mats
moving knowledge between mkts to apply elsewhere for comp adv

38
Q

AAA triangle

A

leaders - find which elements meet companies needs = prioritise

  • emphasis different As at different times of evolution
  • same industry can differ
  • one or 2 -> 3 is possible but challenge due to tensions/differences
  • org and strategy trade offs make hard to pursue multiple -> staffing/ operations/ marketing/leadership/metrics
39
Q

pursuing 1 or 2

A
  • Ghemawat’s argument differs in respect from Bartlett et al’s view on transnational strategy