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60 Cards in this Set
- Front
- Back
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Globalisation
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Reflects the trend of firms buying, developing, producing and selling products in most countries of the world
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Internationalisation
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Doing business in many countrys of the world, often limited to a cirtain region
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5 stage decision model
The 5 steps for market research |
1: Decision whether to internationalize
2: Deciding wich markets to enter 3: Market entry strategy 4: Desinging the global marketing programme 5: Inplementing and coordination the global marketing programme |
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LSE
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Large Scale Enterprises 250> Employees
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SME
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Small/Medium Enterprises <50/<250 employees
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LSE Characteristics
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Many Recourses
Formal Low Flexibility Not willing to take risks |
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SME Characteristics
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Limited recourses
Informal Flexible Willing to take risks |
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Formation of strategy
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> Intended stratgey
> Influenced by the emergent strategy > Creating the Realised stratgey |
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Economies of scale
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Volume in production, resulting in lower cost price per unit
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Economies of scope
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Reusing a resource from one buisness in additional businesses
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Glocalisation
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Development and selling of products for the global market, adapted to the loval culture (MACKroket)
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Value Chain
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Catagorisation of the firms activities providing value for the customers and profit for the company
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The 4 secondary value chain factors
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1: Firm Infrastructure
2: HRM 3: Tochnology Development 4: Procurement |
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the 2 upstream value activities
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research and development
production |
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the 2 downstream value activities
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marketing
sales & service |
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Internal Linkage
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activities in the same value chain, but on a different planning level within the firm
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External linkage
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Between different value chains owned by different actors in the total value systhem
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The difference between up/downstream activities
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Upstream = Direction of the supplier
Downstream = Direction of the customer |
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Why Internationalize? Proactive
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The vision of the management
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Why Internationalize? Reactive
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A reaction on a change within the local market
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3 proactive motives
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1: Increase Profit
2: Growth goals 3: Tax Benefits |
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3 reactive motives
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1: Competitive pressures
2: Overproduction 3: Domestic market is masll and saturated |
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2 Internal internationalisation triggers
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Personal networks
Specifix internal event |
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2 Internal internationalisation triggers
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Market Demand
Network Parnets |
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Internationalisation barriers 3
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Financial barrier
Knowledge Barrier Lack of Connections |
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3 Possible risks when expanding abroud // Example 1
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General Market Risks // Cultural differences
Commercial Risks // Exchange rate fluctuations Political Risks // Foreign gov. restrictions |
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Uppsala model
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Additional market commitments are made in small incremental steps....they gradually intensify their activities in foreign markets.
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The 6 mimensions within the uppsala model
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1: Sales opjects
2: Operations methods 3: Markets 4: Organisational structure 5: Finance 6 Personal |
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The 4 Uppsala model stages
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1: no regular export activities
2: export via independent representitives 3: Establishment of foreign sales subsidiary 4: Foreign production |
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The Transaction cost theroy
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a firm will tend to expand until the cost of organizing an extra transaction within thre firm will become equal to the cost of carrying out the same transaction.
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The (porter) Diamond Model
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Why are some nations better then others?
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6 factors of the diamond model
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1: Factor conditions
2: Demand conditions 3: Related and supporting industries 4: firm stratgey structure and rivalry 5: government 6: chance |
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Diamond model // Factor conditions
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Climate
minerals oil |
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Diamond model // Demand conditions
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Home demand
market size growth rate |
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Related and supporting industries
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presence of suppliers and related industries
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Firm strategy structure and rivalry
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how companies are organized and managed / the nature of domestic rivalry
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goverment
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can influence each of the 4 major factors
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chance
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events outside the controll of the company
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Porters 5 forces
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1: market competitors
2: suppliers 3: buyers 4: substitutes 5: new entrants |
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The competitive triangle (explained)
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Firms producing offerings with a higer perceived value or lower costs than competing firms have a competitive advantage
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The competitive triagnle (image)
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Corporation
Customer Competitor |
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Core Competences
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Value chain activities in wich the firm is regarded as better then its competitors
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Value Net
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a companys calue creation in collaberation with suppliers/customers & complementors/competitors
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Blue Oceans
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A term representing all the existing industries today
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Red Oceans
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Companys that work outside the known blue oceans and dont go head to head with the competition but create their own market
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Advantages of the EMU
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Savings on transactions costs
No risks of exchange rate fluctuations Banks have to share power |
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The Triad
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Europe & The US & Japan
The most important global market |
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Group two basic categories in trade distortion practives
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tarrif barriers
non tariff barriers |
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Tarrif barriers
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Direct taxes and charges imposed on imports
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Non Tariff barriers
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Much more elusive barriers like
- Quotas - Embargoes - Administrative delays |
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Market screening model
Outline model for international market slection |
The firm
The enviroment international market segmentation international market slection |
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Waterfall strategy
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Introduct products in wealthy countrys first then slowly introduce it into less wealthy countrys as the price drops
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Sprinkler/shower approach
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introduce products siultaneously
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Steps of the international segmentation
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Slection
development screening microsegmentation |
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Preliminary screening
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Screened based on external screening criteria
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Fine-Grained screening
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Firms competitive power are taken into account
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7s model
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1 strategy 2 structure 3 systhem
4 Staff 5 style 6 skills 7 shared values |
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7s model explained
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Tool to asses and monitor changes in the internal situation of a organisations, all 7 factors need to be mutally reinforcing
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4 issues in the strategy diamond
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areas
staging economic logic vehicles and differentiators |
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explain the intergration of responsiveness framework slides
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Global intergration VS. Local responsiceness
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