Tutorial 9 Flashcards
Chapter 15
global integration strategies
Strategies that focus
on synergies between operations at different locations.
Chapter 15
local responsiveness strategy
Strategies that deliver locally adapted products in each market
Chapter 15
home replication strategy
A strategy that emphasizes international replication
of home country-based competencies such
as production scales, distribution efficiencies and brand power.
Chapter 15
**Four strategic choices for multinational enterprises: **
Home replication advantages vs disadvantages
**Pro: **
* Leverages home country-based advantages
* Relatively easy to implement
Con:
* Lack of local responsiveness
* May result in foreign customer alienation
Chapter 15
**Four strategic choices for multinational enterprises: ** Localization advantages vs disadvantages
Pro:
* Maximizes local responsiveness
Con:
* High costs due to duplication of efforts in multiple countries
* Too much local autonomy
Chapter 15
**Four strategic choices for multinational enterprises: **
Global standards advantages vs disadvantages
Pro:
* Leverages economies of scale
* Emphasizes integrated innovation
Con:
* Lack of local responsiveness
* Too much centralized control
Chapter 15
**Four strategic choices for multinational enterprises: **
Transnational advantages vs disadvantages
Pro:
* Cost-efficient while being locally responsive
* Engages in global learning and diffusion of innovations
Con:
* Organizationally complex
* Difficult to implement
Chapter 15
localization(multidomestic) strategy
A strategy that focuses on a number of foreign countries/ regions, each of which is regarded as a stand-alone ‘local’ (domestic) market worthy of significant attention and adaptation.
Chapter 15
global standards strategy
A strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages.
Chapter 15
transnational strategy
A strategy that aims to be simultaneously cost- efficient, locally responsive and learning-driven around the world.
Chapter 15
international division
A structure bundling all international activities into one unit.
Chapter 15
global product division
An organizational structure that assigns global responsibilities to each product division.
Chapter 15
global matrix
An organizational structure with two set lines of authority, typically a regional line and a product line.
Chapter 15
subsidiary initatives
The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibility.
Chapter 15
knowledeg management
The structures, processes and systems that actively develop, leverage and transfer knowledge.
Chapter 15
explicit knowledge
Knowledge that is codifiable (that is, can be written down and transferred with little loss of its richness).
Chapter 15
tacit knowledge
Knowledge that is non-codifiable, and its acquisition and transfer require hands-on practice.
Chapter 15
organizational strategy
Knowledge held in an organization that goes beyond the knowledge of the individual members.
Chapter 15
boundary spanner
Individuals with strong networks across business units, and frequently communicating with their network.
Chapter 15
reverse knowledge transfer
Knowledge created in a subsidiary being transferred from the subsidiary to a parent organization.
Chapter 15
community of practice
Group of people doing similar or related work and sharing knowledge about their practices of work.
Chapter 15
knowledge governance
The structures and mechanisms MNEs use to facilitate the creation, integration, sharing and utilization of knowledge.
Chapter 15
absorptive capacity
The ability to recognize the value of new information, assimilate it and apply it.
Chapter 15
social capital
The informal benefits individuals and organizations derive from their social structures and networks.
Chapter 15
national innovation systems
The institutions and organizations that influence innovation activity in a country.
Chapter 16
parent(home) country nationals
Employees from the parent country of the MNE working in subsidiaries abroad.
Chapter 16
host country nationals
Individuals from the host country who work for an MNE.
Chapter 16
third country nationals
Employees who come from neither the parent country nor the host country.
Chapter 15
talent management
The attraction, selection, development and retention of talented employees in the most strategic roles within a company.
Chapter 16
global talent pool
Employees who are systematically prepared to assume leadership.
Chapter 16
local talents
Employees recruited locally and pursuing careers mostly within the local subsidiary.
Chapter 16
expatriates(expats)
Non-native employees who work in foreign countries.
Chapter 16
full immersion training
Intensive exposure to
a foreign culture and language by living within that culture.
Chapter 16
repatriation
The process of facilitating the return of expatriates.
Chapter 16
psychological contract
An informal understanding of expected delivery of benefits in the future for current services.
Chapter 16
commuter assignments
Assignments that involve regular stays abroad
but with the main base remaining back home.
Chapter 16
inpatriates
Employees of a foreign subsidiary relocated to the MNE’s headquarters for the purposes of (1) filling skill shortages at headquarters and (2) developing a
global mindset for such inpatriates.
