International Management

Front 1

Organizational Culture Definition

Back 1

The shared values and beliefs that enable members to understand their roles in the organization

Front 2

National Culture

Back 2

Cultural differences are actually more pronounced among foreign employees working within the same multinational rganization than among personnel working for firms in their native lands

Individual Identity, Relationships, Communication Styles, Level of control, Conduct

Front 3

Family Culture

Back 3

Power-oriented culture, hierarchal, person emphasis

Front 4

EiffelTower Culture

Back 4

Role-oriented, task emphasis, hierarchal

Front 5

GuidedMissile Culture

Back 5

Project-oriented, task emphasis, equitable

Front 6

Domestic Multiculturalism

Back 6

• Diverse cultures within one region; Switzerland has four linguistic groups.
• Diverse views between younger and older generations in one group
  

Front 7

Group Multiculturalism (4 groups)

Back 7

• Homogenous groups: similar backgrounds and react in same ways
  
• Token groups: all members except one have same background
  
• Bicultural groups: two or more members represent same culture
  
• Multicultural groups: individuals from three or more backgrounds
  

Front 8

3 Benefits of Diversity

Back 8

• Avoids groupthink or conformity in decision making
  
• More diverse ideas and unique ideas
  
• Helps develop relationships with culturally diverse customer base
  

Front 9

3 Problems with Diversity

Back 9

• Wildly dissimilar communication styles
  
• Different perceptions of quality
  
• Different values of time
  

Front 10

Communication Definition

Back 10

• The process of transferring meanings from sender to receiver
  

Front 11

Context

Back 11

• Information that surrounds a communication to help convey the message
  
• In high context societies, messages are highlycoded and implicit
  

Front 12

Indirect Style

Back 12

• Implicit messages
  
• Collectivist culture, high-context
  

Front 13

Direct Style

Back 13

• Explicit Messages
  
• Individualistic, low-context culture
  

Front 14

Downward Communication

Back 14

• The transmission of information from managers to subordinate
  
• Lets managers let people know what is to be done and how well they are doing
  
• Flow of information for operational purposes
  
• Helps to continually paraphrase and repeat basic ideas
  

Front 15

Upward Communication

Back 15

• The transfer of meaning from subordinate to superior
  
• Provide feedback, ask questions, and obtain assistance from management
  

Front 16

Perception

Back 16

• A person’s view of reality; will vary on how people see reality and will influence their judgment and decision making
  

Front 17

Nonverbal Communication

Back 17

• Transfer of meaning through body language and use of physical space
  

Front 18

4 Types of Nonverbal Communication

Back 18

• Kinesics
  
• Proxemics
  
• Chronemics
  
• Chromatics
  

Front 19

Negotiation

Back 19

• Bargaining with one or more parties for the purpose of arriving at an acceptable solution for all
  

Front 20

2 Types of Negotiation Styles

Back 20

• Distributive: two parties compete for set value
  
• Integrative: maximizing benefits for both sides (win-win scenario)
  

Front 21

5 Steps of Negotiation

Back 21

• Planning
  
• Relationship Building
  
• Exchanging Information
  
• Persuasion
  
• Agreement
  

Front 22

Strategic Management

Back 22

• Process of determining an organization’s basic mission and long-term objectives, then implementing a plan of action for attaining these goals
  

Front 23

Economic Imperative

Back 23

• Worldwide strategy based on cost leadership, differentiation, and segmentation
• Upstream activities
  

Front 24

Political Imperative

Back 24

• Strategic formulation and implementation utilizing strategies that are country-responsive and designed to protect local market niches
• Downstream activities
  

Front 25

Quality Imperative

Back 25

• Strategies of total quality management to meet or exceed customer’s expectations and continuously improve products or services
  

Front 26

Administrative Coordination

Back 26

• MNC makes strategic decisions based on the merits of individual situation rather than using predetermined economically or politically driven strategy
  

Front 27

Global Integration

Back 27

• Production and distribution of products and services of a homogenous type and quality on a worldwide basis
  

Front 28

National Responsiveness

Back 28

• Need to understand different consumer tastes in segmented regional markets and respond to different national standards imposed by governments or agents
  

Front 29

Global Integration vs. National Responsiveness

Back 29

• Global Strategy based on price competition (mergers & acquisitions occur here)
  
• Multi-Domestic strategy emphasizes local adaptation
  
• International Strategy combines low demand for integration and responsiveness
  
• Transnational strategy emphasizes global integration and local responsiveness
  

Front 30

Environmental Scanning

Back 30

• Attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations
  

Front 31

6 Aspects of Environmental Scanning

Back 31

1. Industry or Market
2. Technology
3. Regulatory considerations
4. Economic Aspects
5. Social Aspects
6. Political Aspects

Front 32

Key Success Factor (KSF)

Back 32

Factor necessary for firms to effectively compete in a market niche

Front 33

Strategy Implementation

Back 33

• Process of providing goods and services in accord with a plan of action
  
• Has overall philosophy or series of guidelines that direct the process
  

Front 34

CSAs

Back 34

Country-specific advantages

Front 35

FSAs

Back 35

Firm-specific advantages

Front 36

First Mover Strategy

Back 36

Strategy for developing countries where firm is first foreign investor

Front 37

Base of Pyramid Strategy

Back 37

Strategy for developing country where firm largest low income consumers to gain market share

Front 38

International Entrepreneurship

Back 38

Innovative or risk seeking behavior for investments abroad

Front 39

Born-global firms

Back 39

Firms that quickly capture global market share after formation

Front 40

Export/Import

Back 40

• Only available option for small and new firms wanting to go international
  
• Option for larger firms looking to expand internationally while minimizing risk
  
• Transitional in nature; further growth requiresmore active investment
  

Front 41

Wholly Owned Subsidiary

Back 41

• Overseas operation that is totally owned and controlled by an MNC
  
• Many smaller firms go this route
  
• Primary reason for WOS is MNC wants totalcontrol and believes that managerial efficiency will be better without outside partners
  

Front 42

Mergers/Acquisitions

Back 42

• The cross-border purchase or exchange of equity involving two or more companies
  
• Allows companies to quickly expand resources or products in new markets
  
• Saves on costs and time needed
  

Front 43

Alliances

Back 43

• Any type of cooperative relationship among different firms
  
• International alliance is composed of two ormore firms from different countries
  

Front 44

Joint Ventures

Back 44

• An agreement under which two or more partners own or control a business
  

Front 45

2 Types of Alliances and Joint Ventures

Back 45

• Non-equity venture: one group providing service for another
  
• Equity joint venture: financial investment by the MNCs involved
  

Front 46

4 Benefit of Alliances & Joint Ventures

Back 46

• Improvement of efficiency to achieve economies of scale
  
• Access to knowledge and skills of foreign partners
  
• Mitigating political factors by reducing risk in emerging markets
  
• Overcoming collusion or restriction incompetition (become insiders)
  

Front 47

Licensing

Back 47

• An agreement that allows one party to use an industrial property right in exchange for payment to the owning party
  
• Usually limited by geographical area and specific time frame (5 years)
  
• Occurs in mature stage of product life cyclewhere competition is strong and profit margins are in decline
  

Front 48

Franchising

Back 48

Business arrangement under which one party (the franchisor) allows another (the franchisee) to operate an enterprise using its trademark, logo, product line, and methods of operating in return for a fee

Front 49

Initial Division Structure

Back 49

• Firms setup subsidiary to handle finance-related business or operations that require an on-site presence from a start
  

Front 50

3 Aspects of Initial Division Structure

Back 50

• Export structure works well for technology because firms can charge a premium price and have export manager handle sales
  
• Export arrangement allows firm to reduce risk and size of investment
  
• After time local governments pressure for on-site manufacturing
  

Front 51

International Division Structure

Back 51

Handles all international operations out of division for that single purpose

Front 52

3 Aspects of International Division Structure

Back 52

Attractive to firms with small international sales, limited geographic diversity, or few executives with international expertise

Front 53

Global product division

Back 53

Arrangement in which domestic divisions are given worldwide responsibility for product groups; provides structure for product specification and differentiation based on local market needs

Front 54

Global Area Division

Back 54

Global operations are based geographically andnot by product; used by companies in mature businesses that have narrow product lines differentiated by geographical area

Front 55

Global Functional Division

Back 55

Based on function and secondarily on product; emphasison functional expertise, tight centralized control, learn managerial staff (oil & mining firms)

Front 56

Mixed Organizational Structure

Back 56

Combination of global product, area, or functional

Front 57

Transnational Network Structures

Back 57

Combines function, product, geographic designs while relying on worldwide subsidiaries;

• Dispersed subunits located anywhere inworld,
• Specialized operations focused on research and particular products
• Interdependent relationships used to share information throughout the subunits.