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14 Cards in this Set
- Front
- Back
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Define the 3 motivators for global expansions |
1. Economies of Scale - domestic mrkts no longer provide high lv of sales needed to maintain volume to achieve scale economies
2. Economies of Scope - a company benefits from presence in diff countries (increase market power)
3. Low cost production factor - could obtain raw material and other resources at lowest possible cost |
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What are the 4 stages of international development |
1. Domestic 2. International 3. Multinational 4. Global |
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Define strategic orientation, stage of development, structure and market potential of domestic |
Orientation: Domestic Stage of Development: Initial foreign involvement Structure: domestic structure + export dept Market Potential: moderate |
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Define strategic orientation, stage of development, structure and market potential of international |
Orientation: Export- orientated Stage of Development: Competitive positioning Structure - domestic structure + international division Market Potential - large, multidomestic |
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Define strategic orientation, stage of development, structure and market potential of multinational |
Orientation: Multinational Stage of Development: Explosion Structure: Worldwide geographical, product Market Potential: Very large multinational |
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Define strategic orientation, stage of development, structure and market potential of global |
Orientation: global Stage of Development: global Structure: Matrix, transnational Mrkt Potential: Whole world |
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What are different types of international strategic alliances |
- licensing, joint venture, consortia - joint venture: separate entity created w/ 2 or more firms (share costs, knowledge, lowe production scost, sharing complementary products, strengths, distribution) -consortia - group of independent companies that join together to share skills, resources, costs and access to ones maret (virtual orgs) |
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Define the global integration/ national responsiveness matris |
High GI and Low NR - globalization strategy (global product structure)
High GI and High NR - both globalization and multidomestic (Global Matrix Structure)
Low GI and Low NR - export strategy (international division)
Low GI and High NR- multidomestic strategy - global geographic structure |
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Explain each of the 4 global integration/national responsiveness strategies |
1. International division (low GI & NR) - export dept grows to international divison (use geographical structure instead of functional) - lines may extend too long
2. Global product division structure (High GI Low NR) - product division takes resp. of global area - product divison may not be cohesive and some countries may be ignored by product manager
3. Global Geographic Structure - (Low GI High NR) - divides world into geographic regions - customization of products to meet specific needs) - pblm: increase efficiency & coordination - sol'n implement staff dept w/ overall view
4. Global Matrix - between business areas and country managers |
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What are some challenges a global organization will face? |
1. Increased complexity and differentiation - due to difference in countries (reject homogenized products)
2. Need for integration - managers all over the world must share idead and set joint priorities
3. Transfer of knowledge and innovation - share across enterprise - offer opp. for learning and development of diverse capabilities |
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What are some mechnisms used for global coordination |
1. Global teams - multiskilled, multinational members whose activites span multiple contries - 2 types intercultural (face to face) and virtual - more locally responsive, develop regional/worldwise cost adv and standardized designs across countries & contribute to learning on global level)
2. HQ Planning: HQ takes active role in planning, scheduling and control to make sure company moves in same direction
3. Expanded coordination roles - structural solutions to achieve stronger coordination and collaboration - benefits: cost savings, better decision making, greater revenues, increased innovation |
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What are possible cultural differences |
1. power distance 2. uncertainty avoidance 3. deal focused vs relationship focused 4. informal vs formal 5. rigid-time vs fluid time 6. expressive vs reserved |
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Explain the 3 national approaches to coordination and control |
1. Centralized (Japan) - R&D, rely on strong coordination and control pros - global efficiencies, coordination across units cons - as expand HQ, can be overloaded
2. Decentralized (Europe) - high level of independence & authority, rely on strong mission, shared values & informal personal relationship
pros - each unit focuses on local mrkt, company excels at diverse needs cons: cost of training and development and making sure managers shares goals, values and priorities
3. Formalization (USA) - formal systems, policies, std policies, regular flow of info
-high costs, high overhead costs & inflexibility |
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Define the transnational model |
goal is to provide efficiency, responsiveness, and learning
4 characteristics 1. Assets & Resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships
2. Structures are flexible and ever-changing
3. Subsidiary managers initiate strategy & innovations that become strategy for the corporation as a whole
4. Unification and coordination are achieved primarily through corporate culture, shared vision, and values and management style rather than through formal strcutre and systems
(read more in summary doc if unclear on each statement) |
