International Managment

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Strategic alliance

Back 1

a voluntary agreement between firm involving exchanges, sharing or co-developing of product technology or services.

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Contractual (non equity alliance)

Back 2

alliance between firms that are base on contract and do not involve the sharing of ownership.

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Equity base alliance

Back 3

alliance base on ownership or financial interest between the firms.

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Strategic investment

Back 4

one firm investment in another as a strategic investment.

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Cross-sharing-

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the firm investment in each other to became cross-shareholder.

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Acquisition

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transferring of control of operations and management from one firm (target) to another (acquirer), the former became a united of the later.

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Mergers-

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the combination of operations and management of two establish a new legal entity.

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Real option

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an investment in real option as opposed of financial capital.

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Relation (collaboration) capability

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capability is successfully manage inter-firm relationships.

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Learning race

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a situation in which alliance partner aim to outrun each other by learning the tricks from the pother side as faster as possible.

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Acquisition premium-

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the difference between the acquisition price and the market value of target.

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Strategic fit-

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the effective matching of complementary strategy capabilities between firms.

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Organizational fit- manager's desired for power and money which may led to decisions that do not benefice the firm overall in the lung run.

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the similar in cultures systems and structures between firms.

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Hubris- over-

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over-confident in ones capital

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Managerial motives-

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manager's desired for power and money which may led to decisions that do not benefice the firm overall in the lung run.

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Table 12.1 Strategic Alliance Advantages

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Reduce cost, risk and uncertainly Accessing complementary asses and learning opportunities
Probability to use alliance as real option

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Table 12.1 Strategic Alliance DisAdvantages

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Choose wrong partner
opportunities Potential partner

Risk of helping nature competitor (learning race)

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Table 12.3 Motivation for Acquisitions

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Resource-based issuesSystematic motives Respond to formal institution constrain and transactions.Leverage superior managerial capabilities.Enhance market power and scale economy.Access to complementary resources.Hubristic MotivationHerd behavior- following normal and chasing fads of M&A.Manager over confident in their capability.Managerial motivations Self-interested action such as empire-building guides by informal norms and cognitions.

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Combating opportunism (1 question)

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Minimizing opportunism by: Walling off critical capabilitiesSwapping critical capabilities through credible commitments.

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Motives for and performance of alliances and acquisitions

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Influence alliances performance:Equity
Learning experience Nationality
Relationship capability
Motivate for Acquisitions
Synergies
Hubristic
Managerial motivation

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Integrated responsiveness

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A framework of the MNE managers on how to simultaneity deal with two set of pressures from global from global integration and local responsiveness.

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Local responsiveness

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the necessity to be responsive to difference costumers preference around the world.

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Home replication strategy

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a strategy that emphasizes the replication of home country base competition in foreign countries.

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Localization strategy

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strategy that focus on a number of forage countries/regions, each of which is regarded as a stand-alone local (domestic) market worthy of significant attention and adoption.

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Global standardization strategy

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a strategy that focus on developing and distributing of standardized products worldwide in order to reap the maximums benefices from low cost advantage.

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Global standardization strategy

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a strategy that focus on developing and distributing of standardized products worldwide in order to reap the maximums benefices from low cost advantage.

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Center of excellences

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An MNE subsidiary explicitly recognized as a sources of important capability, with the intention that these capability be leverage by and/or disseminated to other subsidiaries.

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World wide global mandate

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character to be responsible for MNE function through the world.

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Transitional Strategy

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a strategy that endeavors to be cost efficient locally responsive and learning drive simultaneously around the world

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International division

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an organization structure that is typically set up with firms initially expand aboard, often engage in home replication strategy.

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Geographic aria structure

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an organization structure that organize the MNE according to different geographic area (countries and regions)

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Global product division structure

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an organization structure that assigns global responsibilities to each product division.

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Global mix-

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An organization often used to alleviated the disadvantage associated with both geographic areas and global product division structures especially for MNEs adopting as transitional strategy.

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Reciprocal relationship between multinational strategy and structure

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Strategic usually drive structure.Relationship is not a one way street. Neither structure nor strategic are static.

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Organizational culture

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the collective programing of the mind that distinguishes he members of one organization from another.

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Knowledge management-

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the structure, processes and systems that actively develop leverage and transfer knowledge.

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Explicit knowledge

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knowledge that is codifiable ( can be written down and transfer with little lose of richness)

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Tacit Knowledge

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knowledge that is non-codifiable and it acquisition and transfer required hands on practice.

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Global virtual team-

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a team whose members are physically disperse in multiple locations in the world and often operates in virtual bases.

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Absorptive capacity

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the ability to recognize a new information assimilated and apply it.

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Social capacity

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the information benefits individuals and organizations derive from social structure and net

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Micro-macro link

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the micro, informal interpersonal relationships among managers of various units that may greatly facilitated macro, inter subsidiary cooperation among the units.

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PRODUCT

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refers to offerings that customers purchase- physical or services. Even for a single category, product attributes can vary tremendously.

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Localization

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Natural (i.e. McDonalds sells wine in France). Appealing to both consumers and governments, but expensive for firms.

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Standardization

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Levitt’s the Globalization of Markets » advocated globally standardized products & services (i.e. Coca Cola), but doesn’t usually work.
Marketers dilemma : choosing between both.

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Market Segmentation

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identifying segments of consumers who differ from others in purchasing behavior (i.e Males vs. Females).

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• GLOBAL CITIZENS

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favor buying global brands that signal prestige & cachet.

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• GLOBAL DREAMERS

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may not be able to afford to buy global brands but still admire them.

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• ANTIBLOBALS

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are skeptical about whether global brands deliver higher-quality goods.

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• GLOBAL

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agnostics-most likely lead antiglobalization demonstrations.

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• PRICE

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refers to the expenditures that customers are willing to pay for a product. Most consumers are “price sensitive”. Price elasticity-how demand changes when price changes.

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TOTAL COST OF OWNERSHIP-

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Total cost needed to won a product, consisting of initial purchase cost and follow up maintenance/service

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Place

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the Location where products & services are provided (which now includes ONLINE marketplace).

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DISTRIBUTION CHANNEL

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the set of firms that facilitates the movement of goods from producers to consumers.

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THREE A’s Of SUPLLY CHAIN MANAGEMENT

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Agility-the ability to react quickly to unexpected shifts in supply and demand

Adaptability- The ability to change supply chain configurations in response to longer term changes in the environment & technology.

Alignment-The alignment of the interests of various players involved in the supply chain