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39 Cards in this Set
- Front
- Back
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Contractual entry strategies in IB |
Cross border exchanges where relationship between focal firm/foreign partner is governed by an explicit contract |
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Unique aspects to contractual entry strategies in IB |
- governed by contract that provides focal firm control over foreign partner - reduce local perceptions of firm being foreign enterprise - typically include exchange of intangibles/servs |
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Contractual entry strategies |
licensing, franchising, turnkey contracting |
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Licensing... |
is the relationship between owner of intellectual property, licensor, and the use of property rights under contract |
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Franchising... |
is an advanced form of licensing, where you receive an established business model, supplies/resources, and support from corporate |
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Other contractual entry strategies... |
Turnkey contracting is an arrangement where the focal firm(s) plans, finances, organises, manages and implements all phases of a project for a foreign customer Management contract Leasing |
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Intellectual property types |
patent (protection afforded to idea/product) trademark (protection afforded to name/design) copyright (artistic/academic e.g. lyrics to songs) industrial design
trade secret (KFC) |
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Guidelines for protecting intellectual property |
- infringement - proactive (adopt comprehensive strategies) - understand local/foreign property laws - register all relevant rights in all countries you intend to do business in - licensing/franchising agreements clear in intentions of use - pursue criminal prosecution for infringements - monitor - include clause on reporting of infringements - guard trade secrets closely - continuously upgrade technologies and products |
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Global sourcing |
Outsourcing internationally i.e. removing a business process from within organisation that isn't adding value to another location. - offshoring - re-shoring |
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2 key decisions for outsourcing... |
1. Outsource or not? - internalisation vs externalisation, conduct in-house or by external supplier - firms will internalise core competencies relating to proprietary knowledge 2. Where in the world should value-adding activities be located? |
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Ethics are... |
the moral principles that govern behaviour of people, firms or government regarding right/wrong |
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4 areas of ethics |
- relativism - normativism - intellectual property - human rights |
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Corporate Social Responsibility... |
a manner of operating a business that meets/exceeds the ethical, legal, commercial and public expectations of stakeholders |
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Corruption |
The abuse of power in order to achieve illegitimate personal power or gain |
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Culture of a society is.. |
the shared values, understandings and goals that strongly influence attitudes and expectations, therefore on-job behaviour essential that managers know how to navigate cross-cultural landscapes to anticipate how to communicate, motivate and coordinate in foreign contexts |
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Noise in the Shannon-Weaver model |
physical physiological psychological perceptual semantic |
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8 negotiation influence strategies... |
- rational persuasion - inspirational/emotional appeals - ingratiation - personal appeals - reciprocity in exchange - coalition - legitimation - pressure (pressure, threats, frequent comm.) |
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Conflict management |
- forcing (use of power/position) - smoothing (gloss over differences) - third party (adjudication/mediation) - negotiation (compromise/mutual gain) |
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Distributive negotiations (dividing the pie) |
- others are adversaries - what I gain, you lose - control information - use power tactics - concede grudgingly - compromise, split the difference |
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Integrative negotiations (expanding the pie) |
- others are simultaneous adversaries + partners - possible to solve each others problems - establish dialogue - talk about interests/concerns - look for areas of difference/possible for trades - mutual agreements - transformation of problems |
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Substantive negotiation |
shape perceptions of bargaining zone, demands and counteroffers, interests/opinions - those sitting at table matter |
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Shadow negotiation |
shape perceptions in relation to power/authority/status/influence, creating an impression - stakeholders of those sitting at table matter |
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Process of negotiation (5 steps) |
1. Contact initiation 2. Preparation (prenegotiation) - building rapport - planning and preparation 3. Bargaining - exchanging information - generating alternatives - resolving disputes 4. Closure attempts 5. Implementation |
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Creating the foundation for a relationship |
- use prenegotiation fully/effectively - recognise that long-term business deals are continually negotiated - consider mediator or conciliator for deal - agree on regular meetings during transaction - be specific about your interests and expect reciprocation - inform each other of key aspects regardingorganisational culture - carefully define how the deal willbe executed |
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Special barriers for negotiating across borders |
Higher risk of failure, longer process; - negotiating environment - culture - ideologies - foreign organisations and bureaucracies - foreign laws and governments - multiple currencies - instability and sudden change |
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Negotiation and different cultures |
- potential misunderstandings with communication - potential misunderstandings with interpreting actions - changes in products, management systems, HRM - style of negotiation |
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Why is internationalisation important? (NZ Trade & Enterprise) |
NZ isn't as much of an exporter as perceived/as much as govt wants us to be. Below average in OECD countries (30% of GDP). |
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Government's business growth agenda (NZ Trade & Enterprise) |
Exports from 30%GDP to 40% by 2025. To achieve 40%GDP exports we need 6 or 7 Fonterras. - knowledge intensive manufacturing and services - value-added food and beverages - high value tourists - minerals and petroleum |
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Management development... |
the process from which managers learn and improve their skills to benefit themselves and their employing organisations |
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How to you assemble the best team? |
- mentoring - executive coaching - professional development - international assignment |
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What are the skills of a global manager? |
Cross-cultural training: - area studies - language training - sensitivity training - field experience - host family surrogate |
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Multiculturalism (2 types) |
domestic multiculturalism group multiculturalism (homogenous, token, bicultural, multicultural) |
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Advantages of diversity |
- can enhance creativity - generates more ideas (sum of knowledge) - prevents groupthink (conformity) |
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Disadvantages of diversity |
- lack of cohesion - poor attitudinal space - inaccurate biases and communication - issues with time management |
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Buildling culturally diverse teams |
creating self-awareness -> mapping differences -> bridging gaps and identifying strategies -> developing strategies -> identifying results |
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Diplomacy |
The management of international relations, an official representing a country abroad. |
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Personal relation skills of diplomat |
- adriotness in personal relations - the use of titles - capacity to meet people/establish/maintain - capacity to listen - empathy and mindfulness - capacity to work in a team - conflict management - self awareness - hold a polite conversation |
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The meaning of work (basic and others) |
the basic meaning of work is tied to economic necessity, but also: - achievement - honor - social contacts - how does work fit relative to everything else in one's lifestyle |
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Leadership in IB |
- attributes of the person - characteristics of decisions - characteristics of the firm - attributes of job or person - affected by cultural factors - needs to be aligned |
