Week 7

Question 1

What are some international market drivers

Answer 1

Market demand
potential for cost advantage
government inducing and pressures
competitive moves

Question 2

what are firm specific advantages?

Answer 2

These are the unique strategic capabilities of the firm.

Question 3

what is market selection?

Answer 3

looking at which markets to prioritise and which to avoid. (political, social, economical factors)

Question 4

Whats the difference between an international and global strategy?

Answer 4

International strategy - operating outside of an organisations country of origin.

Global strategy - high coordination of extensive activities dispersed geographically in many countries around the world.

Question 5

what is global balcony?

Answer 5

where economic integration into a single homogenised and competitive world is wildly exaggerated. (Eg: Chinese markets not only vary from western ones but vary widely within china itself.

Question 6

What are YIP’s drivers of internationalisation?

Answer 6

focus on for key areas:

• Cost drivers - (economies of scale, lower labour, favourable logistics)
• Goverment drivers -(trade policies/ technology standardisation)
• competitor drivers
• demand drivers

Forces organisation to lower costs and increase quality on a global scale.

Question 7

What is Porter’s Diamond

Answer 7

locational advantages stem from, local factor conditions, demand conditions, firm strategy,structure and rivalry and related and supporting industries.

Question 8

What is global sourcing?

Answer 8

Purchasing services and components from the most appropriate suppliers around the world regardless of location.

Advantages include:

• cost
• national market characteristics
• unique local capabilities

Question 9

What is the Global –local dilemma

Answer 9

the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets.

Question 10

What are some international strategies

Answer 10

local Intergration Vs local responsiveness

• Global strategy
• Export strategy
• Transnational strategy
• Multidomestic strategy

Question 11

What is Arbitrage?

Answer 11

when multinationals take advantage of price differences between two or more markets by purchasing goods cheaply in one market and selling them at a higher price in another.

Question 12

CAGE framework?

Answer 12

Emphasises the importance of :

-Culture, administrative and political distance, geographic distance, economic

Question 13

What are the two international strategy phenomenon’s

Answer 13

Born global firms - new small firms that internationlise rapidly though early stages of thier development

emerging country multinationals -move through entry modes quickly.

Question 14

The inverted U curve?

Answer 14

Where the cost of organisational complexity outweigh the benefits of internationalisation.

Question 15

What is service sector disadvatage?

Answer 15

when internationalisation efforts may not lead to improved presense - due to industry being highly regulated. - also requires significant local presence.

Question 16

subsidary roles in a multinational firms

Answer 16

Black hole - question marks - needs high investment
Implementer (generate financial contributor -cash cow)
Strategic leader
contributor

Question 17

What does the innovation dilemms include?

Answer 17

Technology push - new knowledge created by scientisitcs and technologies that pushes the innovation process.

Market pull - pull of users in the market

lead users - pull of market experts
Frugal innovation - responding to the needs of the poor people (lack of money and enviroment)

Question 18

whats the difference between product and process innvoation?

Answer 18

product innovation - final product being sold

Process innovation - way the product is produced and distributed.

Question 19

What is open and closed innovation?

Answer 19

closed = traditional innovation
open = relies on import and export of knowledge - enhance innovation. relied on collaborators
- works well if innovation is continuous.

Question 20

What is platform leadership

Answer 20

refers to how large firms consciously nurture independent companies through successive waves of innovation around their basic technology platform

Question 21

Balance of open and closed innovation depend on?

Answer 21

• Competitive rivalry
• One-shot innovation – innovation involves a major shift in technology.
• Tight-linked innovation – technologies are complex and tightly interlinked.

Question 22

Business model innovation involves innovation in:?

Answer 22

product - what product and how it is produced
selling - can change the way organisation generates revenue.
-innvoation can be drawn from all parts of the value chain.

Question 23

what is diffusion?

Answer 23

The process by which innovation speads among users.

The pace is determined by supply and demand factors

Demand factors:

• Market awareness
• Network effects
• customer propensity to adopt

supply factors:

• degree of improvement (innovation benefits exceed costs)
• compatability - other products
• complexity
• experimenting (trialing product)
• relationship management (information and support)

Question 24

What is the diffusion S curve?

Answer 24

reflects a process of initial slow adoption of innovation, followed by rapidly acceleration in diffusion, leading to a plateau representing the limit to demand.

Tipping point - demand accelerates - rapif growth

Triping point - demand collapses.

Question 25

What are the 5 first mover advantages?

Answer 25

experience curve benefits 
buyer switching costs 
reputation 
scale benefits 
preemption of scarce resources

Question 26

what is the Fast second strategy?

Answer 26

involves being one of the first to imitate the original innovator.

Question 27

The entrepreneurial life cycle

Answer 27

progresses through start-up, growth, maturity and exit.