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International Business > Oktober 19/ 2 > Flashcards

Oktober 19/ 2 Flashcards

1
Q

Motivation Check:

Three Questions?

A
  1. Drivers: What compels/drives us to go (more) international?
  2. Benefits: What do we hope to gain?
  3. Synergy: How will this move help us create synergies with other parts of our operations?
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2
Q

Motivation Check, Drivers

the two main groups of drivers

A

External, reactive Drivers (Push)

  • internationalization of customers and competitors
  • Trade barriers, Legal Rules and Restrictions

–> wir sind gezwungen international zu gehen

Internal, proactive drivers (Pull)

  • Economic of Scale and Scope
  • Growth Opportunities
  • Favourable Resoruce Availability
  • Innovation drive, government incentives

–> wir wollen international gehen wegen Chancen

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3
Q

Readiness Check

Analysis for Company Readiness?

A
  • Swot Analysis
  • Value Chain analysis
  • unique competencies and dynamic capabilities
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4
Q

Readiness Check

Company readiness

What do the company has to analyse at least?

A
  • Knowledge and commitment of management
  • Resources (financial, tangible, relative skills)
  • Networks and partner
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5
Q

Readiness Check

Market Readiness

The company has to identify industry specific factors

A
  • Industry trends
  • standards and regulations
  • unique customer requirements
  • competition intesity
  • availability and sophistication of distribution
  • tariff and non-tariff barriers
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6
Q

Readiness Check

Product Readiness

6 factors to check:

Grafik

A
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7
Q

Readiness Check

Product Readiness

6 Factors to check

A
  • customer characterisitcs
  • competitive positionen of the brand
  • competition
  • pricing
  • channel effort and productivity
  • customer receptivity (Kundenbereitschaft)
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8
Q

Market Selection and entry check

Pacing

What are the advantages for First Mover?

A

‒ Ability to pre-empt rivals by establishing a strong brand name.
‒ Ability to build up sales volume and ride down the experience curve ahead of rivals and gain a cost advantage over later entrants.
‒ Ability to create switching costs that tie customers to their products or services.

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9
Q

Market Selection and Entry check

Pacing

What are the first movers DISadvantages

A

‒ Pioneering costs arise when the foreign business system is so different from that in a firm’s home market that the firm must de-vote considerable time, effort and expense to learning the rules of the game:
> the costs of business failure if the firm, due to its ignorance of the foreign environment, makes some major mistakes,
> liability of being a foreigner,
> the costs of promoting and establishing a product offering, including the cost of educating customers
‒ Regulation changes can benefit later entrant: risk on emerging and developing markets. E.g. uber (first over) and lyft (second mover). The second mover profits from the mistakes the first mover has made.

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10
Q

What are the Drivers of Market Globalization?

A
  • worldwide reduction of barriers to trade/invest
  • market liberalization/ adoption of free market
  • industrialization, economic development and modernization
  • advances in technolgy
  • world financial markets
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11
Q

Firm-Level Consequences of market globalization? (HS19)

A
  • much new business opportunities for internationalizing firms
  • new risks (rivalry) from foreign competitiors
  • more demanding buyers who source from suppliers worldwide
  • internationalization of firms value chain
  • proactive internationalization
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12
Q

What skill does a global manager need?

(source google)

A

Strategic Perspective. These executives have a much clearer view of the future of the company. …

Customer Focus and Understanding. …

Ability to Spot Trends and Connect the Dots. …

Engaged and Committed Teams. …

Willingness to Take Risks. …

Deep Knowledge and Expertise. …

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13
Q

OLI Paradigm

A company needs this 3 advantages to be able to successfully engage in FDI

Grafik 1

A
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14
Q

OLI Paradigm

A company should be able to answer this 3 questions with yes before internationalizise

Grafik 2

A
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15
Q

OLI Paradigm

A

A company needs all 3 advantages to be able to successfully engage in FDI.

Ownership:

  • overcome the liability of foreigness throug a possession of a certain valuable, rare, hard to imitate resource

–> does our firm have a certain competitive advantage that can be transferred abroad in order to offset our liability of foreignness?​

Location:

  • geographical advantages (e.g. Netherlands between UK and Germany, near by the ocean)
  • Cheap raw materials
  • low wages
  • skilled labour force

–> at least some of this points must be better in the foreign country to be able to engage successfully there

Internationalization:

  • choosing between licensing and FDI

- is it more attractive to perform the value chain in-house or by an external party?

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16
Q

Trade Theories

Absolute Advantage

18th Century

A

Absolute Advantage:

Countries should specialise int the production of goods for which they have an absolute advantage and trade for others

17
Q

Trade Theorie

Comparative Advantage

18./19. Century

A

Comperative Advantage:

Nations benfit by producing those goods in which they have a comparative Advantage and then trade them to acquire supplies of all goods

18
Q

New Trade Theory

  1. Century
A

New Trade Theory

Trade will arise not only between countries which are different (as in the traditional theory), but also _between countries which are identical i_n terms of access to technology and factor endowments

Author: Paul Krugman

19
Q

Motivation Check:

Push Factors to go International

Reactive Drivers

A
  • Internationalization of Customers
  • Internationalization of Competitors
  • Internationalization Suppliers
  • Legal Rules & Restrictions
  • Trade Barriers

–> Wir gehen international als Reaktion auf oben genannte Geschehnisse

20
Q

Motivation Check:

Pull Factors to go International

Proactive Drivers

A
  • Economies of Scale and Scope
  • Growth Opportunities
  • Favorable Resource Availabilty
  • Innovation Drive
  • Government Incentives

–> wir gehen international weil wir uns dadurch obiges erhoffen

21
Q

Motivation Check

Drivers

Mögliche Gründe von PESTLE

jeder Buchstabe ein Grund

A

Political
: Worldwide reduction of barriers to trade
and investment
Economic
: Market liberalization and adoption of free
market policies and principles
Societal
: Industrialization, economic development,
and modernization
Technological
: Advances in communication and
materials technology
Environmental
: Proximity to raw materials and
economically advantageous labor sources
Legal
: Integration of global financial markets

22
Q

Motivation Check

Benefits

Mögliche Benefits nennen (Aus der Literatur)

A

-
Greater Flexibility
-
Lower susceptibility to systematic intra economic
shocks
-
Scale , scope and cost advantages
-
Higher sustainability of superior economic rents
through the erection of entry barriers for
international competitors
-
Higher ROA and post tax ROA than uni national
corporations
-
Superior production and supply activities
-
Higher market value

Geringere Anfälligkeit für systematische intraökonomische Prozesse
Schocks
-
Umfang, Umfang und Kostenvorteile
-
Höhere Nachhaltigkeit der höheren wirtschaftlichen Mieten
durch die Errichtung von Zugangssperren für die Bereiche
internationale Wettbewerber
-
Höhere ROA und Nachsteuer-ROA als uni national
Unternehmen
-
Überlegene Produktions- und Lieferaktivitäten
-
Höherer Marktwert

23
Q

Cost of Internationalization

A
  • Higher Costs
  • Reduced Control
  • Problems of joint control in JV’s
  • Long-run business imapirments through behavior locally seen as unethical
  • cost of litigation (Rechtsstreit)
24
Q

Synergies Stages

(when going international)

Grafik

A
25
Q

Readiness Check

3 Barriers to Internationalization

A
  1. Lack of knowledge
  2. Lack of Network
  3. Lack of Resources
26
Q

Readiness Check

The 4 Critical Success Factors

A

1.
Industry Critical Success Factors resulting
from specific industry characteristics
2.
Strategy Critical Success Factors resulting
from the chosen competitive strategy of the
business
3.
Environmental Critical Success Factors
resulting from economic or technological changes
4.
Temporal Critical Success Factors resulting
from internal organizational needs and changes

27
Q

Wann gibt es wirklich

First Mover advantages?

Claim First Mover Advantages, when..

A

Messaging, when the subject is new and topical
-
Networked industries where value rises exponentially as users grow
-
Product categories (with long development cycles) rather than services
-
Sticky markets where once a customer is acquired, they are slow to leave
-
Fast moving technology markets, where advantages are short lived
-
Slow and steady growth markets, where new adopters are not plentiful
-
Corporates that position themselves as dynamic leaders
-
Smaller companies, with a need to be radically different to stand out
-
Challenger businesses that aim to break existing business models

28
Q

Externalization vs. Internalization

How are:

Control, Risk, Cost, Commitment?

A
29
Q

Internationalization of Swiss Firms

Grafik

A
30
Q

Absoluter Vorteil erklären

A

Ein Produzent hat einen absoluten Vorteil gegenüber den anderen Produzenten, wenn er für die Herstellung eines Gutes eine kleinere Input-Menge an Produktionsfaktoren (z.B. Arbeit, Kapital) benötigt. Dies bedeutet, er kann das gleiche Produkt zu tieferen Kosten herstellen als alle anderen

31
Q

Komparativer Vorteil erklären

A

Er besagt, dass ein Handel immer dann lohnenswert ist, wenn die zwei Vertragsparteien unterschiedliche Kostenstrukturen haben. Jede Vertragspartei sollte sich dann auf die Produktion desjenigen Gutes konzentrieren, welches es relativ zum anderen Vertragspartner günstiger produzieren kann.

Wir handel das, wo wir tiefere Opportunitätskosten haben.

Obwohl vlt Indien alles günstiger produzieren können, werden sie gewisse sachen importieren weil sie zb. 4 Tücher anstelle von 2 Besen produzieren können –> sie werden Besen importieren und Tücher exportieren.

International Business (7 decks)

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