Module 1 Flashcards
Acquisition
Market entry strategy that results in expansion of company’s employee base and facilities.
Assignees
Employees who work outside their home countries.
Authority
Relates to the scope of responsibilities that define the area in which a manager or supervisor is empowered to make decisions.
Balanced Scorecard
Measurement tool to evaluate organizational strategy; looks at financial, customer, operations, and learning and growth measures.
Benchmarks
Best practices extracted from the activities and achievements of organizations throughout a sector.
Brownfield Operation
Market entry strategy in which a company repurposes, through expansion or redevelopment, an abandoned, closed, underutilized industrial or commercial property.
Center of Excellence
HR organizational alternative established as an independent department that provides services within a focused area to internal clients.
Chain of Command
Refers to a line of authority within an organization.
Civil Law
Legal system based on written code ( laws, rules, or regulations).
Common Law
Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.
Contract Manufacturing
Market entry strategy that involves contracting for the manufacture of components or products as a means of lowering labor costs.
Corporate Social Responsibility (CSR)
Recognition of the impact a corporation has on the lives of its stakeholders (including shareholders, employees, communities, customers, and suppliers) and the environment; can include corporate philanthropy, sustainability, and employee rights and workplace safety
Cosourcing
Arrangement in which an enterprise and a vendor share different tasks within a larger complex, often strategic responsibility.
Culture
Shared system of values, beliefs, and attitudes
Data Mining
Process of searching through large databases to identify relationships and trends.
Dedicated HR
HR organizational alternative that allows business with different strategies in multiple units to apply HR expertise too each unit’s specific needs.
Dilemma Reconciliation
Process of charting a course through cultural differences.
Due Diligence
Process of investigation and evaluating the details of a business decision that may affect its outcome before mergers, acquisitions, partnerships, alliances, and outsourcing.
Due Process
Agreed procedures through which a government’s written and publicly disclosed laws are enforced.
Environmental Scan
Survey of external environments to identify potential opportunities and threats.
Equity Partnership
Market entry strategy that involves acquiring partial ownership through purchase of shares; may be general (sharing proportionally in control, profits, and liabilities) or limited (no managerial authority, liability limited to investment).
Ethnocentrism
Approach to managing operations in which headquarters maintains tight control over international operations by staffing key positions in subsidiaries with headquarters personnel.
Extraterritoriality
(1) state of being beyond the jurisdiction of local laws; (2) extension of the power of a country’s laws over its citizens outside that country’s sovereign national boundaries.
Extraterritorial Laws
Laws that extend certain legal requirements of a home country to the activities of its citizens traveling abroad and its entities (for example, corporations) operating in host countries.
Foreign Corrupt Practices Act (FCPA) U.S.
U.S. law that prohibits bribery of foreign government officials by U.S. persons or firms, including their non-U.S. subsidiaries and third-party agents (for example, supply chain partners)
Foreign Direct Investment (FDI)
Investment of foreign assets into domestic structures, equipment, and organizations
Formalization
Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.
Forum Shopping / Jurisdiction Shopping
Situation in which a plaintiff brings suit in a jurisdiction more likely to be sympathetic to his or her claims.
Franchising
Market entry strategy in which a trademark, product, or service is licensed for an initial fee and ongoing royalties.
Front-back Structure
Organizational structure that divides an organization into “front” functions, which focus on customers or market groups, and “back” functions, which design and develop products and services.
Functional HR
HR organizational alternative in which headquarters HR is staffed with specialists who craft policies; HR generalists may be located within divisions or other locales to implement these policies, adapt them as needed, and interact with employees.
Functional Structures
Organizational structure in which departments are defined by the services they contribute to the organization’s overall mission, such as marketing and sales, operations, and HR.
Geocentricism
Approach to managing operations in which management talent can come from any location in the enterprise.
Geographic Structure
Organizational structure in which geographic regions define the organizational chart.
Global Integration (GI)
Strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.
Global Organization
Type of organization that views the world as a single, global market and offers global products that have little or no national variation or that have been designed with customizable elements.
Globalization
Growing interconnectedness and interdependency of countries, people and companies.
Glocalization
Characteristic of an organization with a strong global image but equally strong local identity.
Governance
Rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes or conduct.
Greenfield Operation
Market entry strategy in which a company builds a new location from the ground up.
High-Context Culture
Culture that is characterized by complex networks of relationships, which are as important as work and often blur the line between business and social lives; rules are implicit and often applied flexibly.
Hybrid Culture
Organizational Structure that mixes elements of the functional, product, and geographical structures.
Insourcing
Transferring a previously outsources function back in-house
International Emergency Economic Powers Act ( IEEPA), U.S.
U.S. law that clarifies and restricts executive powers to block international transactions and freeze foreign assets.
International Organization
Type of organization that is beginning to export products or services to foreign countries; may open production facilities or service centers, but products/services, processes, and strategies are developed in the home country.
Joint Venture
Market entry strategy that is the product of an agreement between two or more parties to create a new economic entity to produce a product or service together; all parties contribute equity and share in revenues, expenses and control.
Jurisdiction
Authority of a legal body to administer justice within a certain geographical territory or subject matter.
Licensing
Market entry strategy in which a firm in the host country is granted the rights to produce or sell a product.
Line Units
Work groups that conduct the major business of an organization, such as the production or marketing functions.
Local Responsiveness (LR)
Strategy that emphasizes adapting to the needs of local markets; allows subsidiaries to develop unique products, structures, and systems.
Low-Context Culture
Culture in which relationships tend to have less history; individuals know each other less well and don’t share a common database of experience, so communication must be very explicit.
Management Contract
Market entry strategy in which a foreign company is brought in to manage and run the daily operations of the business; decisions about financing and ownership reside with the host-country owners.
Matrix Structure
Organizational structure that has ties to both product and geographic divisions and attempts to balance local needs with global efficiencies and economies of scale; employee participating in a project may have two bosses: one from the product side and one from the geographic side.
Mission Statement
Concise expression of the essential purpose and value a company provides.
Multi-Domestic Organization
Type of organization that is a decentralized portfolio of subsidiaries; goals and strategies are developed locally because of competitive demand, and knowledge is shared on a local rather than global level.
Offshoring
When a company relocates processes or production to a lower-cost, international location in the form of subsidiaries or third-party affiliates.
Open Sourcing
Way of eliciting innovative ideas from non employees of contractors; term derives from the software development realm, in which certain ideas and tools are freely shared in the programming community; practice has now been applied to product and service development.
Organizational Structure
Way in which an organization arranges its lines of authority and communication; the way its component parts are differentiated and linked.
Outsourcing
when a company contracts with a third-party vendor for the supply of products, serves, or component parts.
Polycentrism
Approach to managing operations in which host-country nationals usually staff and manage the local subsidiary; these employees do not usually get promoted to headquarters positions.
Product Structure
Organizational structure in which functional departments are grouped under major product divisions.
Prosecutorial Remedies and Other Tools to End the Exploitation of Children Today (PROTECT) Act, U.S.
U.S. law that authorizes fines and/or imprisonment for U.S. citizens or residents who commit sexual offenses against minors in foreign countries abroad; applies to liaison with child prostitutes and prohibits possession and distribution of child pornography.
Regiocentrism
Regional approach to managing operations; communication and coordination are high within the region but not as high between the region and headquarters.
Rule of Law
Concept that stipulates that no individual is beyond the reach of the law and that government exercises its authority only in accordance with written and publicly disclosed laws that are enforced through agreed procedures.
Sarbanes-Oxley (SOX) Act, U.S.
U.S. law that covers issues such as responsibility of boards and senior management to provide accurate and complete financial reports and conflict of interest by auditors and stock analysts; requires administrators of defined contribution plans to provide notice of covered blackout periods and provides whistleblower protection for employees.
Shared Service HR
HR organizational alternative in which each country or unit, rather than having to develop its own expertise in every area, can supplement its resources by selecting what it needs from a menu of shared services.
Sharia
Body of Islamic religious law; affects a broad spectrum of behaviors: religious, commercial, and manners and morals.
Social Media
Web-based tools and technologies used to share information and turn communication into interactive dialogues with internal or external audiences.
Span of Control
Refers to the number of individuals who report to a supervisor.
Staff Units
Work groups that assist an organization’s line units by performing specialized services such as accounting or HR.
Stakeholder Concept
Theory that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities.
Strategic Alliance
Market entry strategy that involves a number of companies loosely or tightly joined for a variety of purposes, including manufacturing, marketing, or false; companies will collaborate and contribute resources (but not equity) toward achieving a defined goal.
Strategic Planning
Process of positioning a company for the future; involves four stages: formulation, development, implementation, and evaluation.
Strategy
Plan of action for accomplishing a gaol or set of goals and objectives; details separate activities (tactics) that must be coordinated over time.
Supply Chain Management
Process of planning, implementing, and controlling operations, from acquisition of raw materials to customer delivery and support.
Sustainability
Practices that balance economic, social, and environmental interests to secure the interests of present and future generations.
SWOT Analysis
Type analysis used ti discover distinctive competencies an organization possesses that provide a strategic advantage and identity potential problem areas that must be addressed; looks at strengths, weaknesses, opportunities, and threats.
Transnational Corporation (TNC)
Type of organization in which production or service processes become more globally dispersed and interconnected; strategy is developed globally, and innovation and best practices are freely exchanged among countries.
Turnkey Operation
Market entry strategy in which a company acquires and operates an existing facility without making major changes.
Value
Represents how well an organization has been able to accomplish its strategic goals.
Value Chain
Process by which an organization creates the product or service it offers to the customer.
Values Statement
Statement that describes what an organization believes in and how it will behave; provides a “moral compass” for the organization’s members.
Vision Statement
Statement that describes the organization as it would appear in the future if it is successful in its mission; purpose is to inspire and motivate.
