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40 Cards in this Set
- Front
- Back
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Cooperative agreement between potential or actual competitors |
Strategic Alliances |
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Actions managers take to attain the firms goals |
Strategy |
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A ratio or rate of return concept |
Profitability |
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The percentage increase in net profits over time |
Profit Growth |
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Performing activities that increase the value of goods or services to consumers |
Value Creation |
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The various value creation activities a firm undertakes |
Operations |
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The totality of a firms organization, including formal organizational structure, control systems and incentives, organizational culture, processes, and people |
Organizational Architecture |
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The three-part structure of an organization, including its formal division into subunits such as product divisions, its location of decision-making responsibilities within that structure, and the establishment of integrating mechanisms to coordinate the activities of all subunits |
Organizational Structure |
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The metrics used to measure the performance of subunits and make judgements about how well managers are running those subunits |
Controls |
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The devices used to reward appropriate managerial behavior |
Incentives |
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The manner in which decisions are made and work is performed within any organization |
Processes |
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The values and norms shared among an organization's employees |
Organizational Culture |
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The employees of the organization, the strategy used to recruit, compensate, and retain those individuals, and the type of people that they are in terms of their skills, values, orientation |
People |
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Firm skills that competitors cannot easily match or imitate |
Core competence |
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Cost advantages from performing a value creation activity at the optional location for that activity |
Location Economics |
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When different stages of value chain are dispersed to those locations around the globe where value added is maximized or where costs of value creation are minimized |
Global Web |
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Systematic production cost reductions that occur over the life of a product |
Experience Curve |
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Cost savings from learning by doing |
Learning Effects |
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Cost advantages associated with large scale production |
Economies of Scale |
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Needs that are the same all over the world, such as steel, bulk chemicals, and industrial electronics |
Universal Needs |
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A firm focused on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies |
Global Standardization Strategy |
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Increasing profitability by customizing the firm's goods and services so that they provide a good match to tastes and preferences in different national markets |
Localization Strategy |
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Trying to create value by transferring core competencies to foreign markets where indigenous competitors lack those of competencies |
International Strategy |
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Attempt to simultaneously achieve low costs through location economies, economies of scale, and learning effects while also differentiating product offerings across geographic markets to account for local differences and fostering multidirectional flows of skills between different subsidiaries in the firms global network of operations |
Transactional Strategy |
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Refers to the shift toward a more integrated and interdependent world economy |
Globalization |
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Any firm that engages in international trade or investment |
International Business |
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A firm that owns business operations in more than one country |
Multinational Enterprise (MNE) |
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The total accumulated value of foreign-owned assets at a given time |
Stock of FDI |
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The power of microprocessor technology doubles and its costs of production fall in half every 18 months |
Moore's Law |
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Direct investment in business operations in a foreign country |
Foreign Direct Investment (FDI) |
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Occurs when a firm exports goods or services to consumers in another country |
International Trade |
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Established in 1999, the G20 comprises the finance ministers and central bank governors of the 19 largest economies in the world, plus representatives from the Eurpean Union and the European Central Bank |
Group of Twenty (G20) |
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A international organization made up of 193 countries headquartered in New York City, formed in 1945 to promote peace, security and cooperation |
United Nations (UN) |
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International treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO |
General Agreement on Tariffs and Trade (GATT) |
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The organization that succeeded the General Agreement on Tariffs and Trade (GATT) as a result of a successful completion of the Uruguay Round of GATT negotiations |
World Trade Organization (WTO) |
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International institution set up to maintain order in the international monetary system |
International Monetary Fund (IMF) |
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International institution set up to promote general economic development in the world's poorer nations |
World Bank |
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Inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how |
Factors of production |
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Trend by individual firms to disperse parts of their products processes to different locations around the globe to take advantage of difference in costs and quality of factors of production |
Globalization of production |
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Moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national marketsare merging into one global market |
Globalization of Markets |
