Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
|
What are the specific characteristics of focalfirms? |
The most prominent international players, including MNEs, SMEs and born globals. They initiate the international business transactionby conceiving, designing and producing offeringsintended for worldwide consumption. |
|
|
Distinguish the characteristics of internationalMNEs |
Leading MNEs are large global companies that are listed onthe Fortune Global 500. MNEs have substantial resources that perform variousbusiness activities through a network of subsidiaries andaffiliates located in multiple countries. MNEs are best known for their foreign direct investment(FDI) activities, and derive often more than half of their totalsales and profits from cross-border operations. MNEs have shaped the current phase of globalisation, andglobally sourcing their value chains. Examples: Accor in hospitality and Disney in entertainment;IKEA and Gap in retailing; Amazon and Netflix in media;state-owned MNEs in developing countries and centrallyplanned economies. |
|
|
Distinguish the characteristics of SMEs |
SMEs comprise the majority of firms active ininternational business. SME has advantages, including: (1) flexible,innovative, adaptable and entrepreneurial; (2) lessbureaucracy and fixed assets tied up in foreignmarkets; (3) target global market niches and servespecialised buyer needs by using information andcommunication technologies; (4) serve neglectedglobal market segments with direct marketingaccess. SME has disadvantages, including: limited financialand human resources. |
|
|
Distinguish the characteristics of Born-Globals |
Born globals initiate internationalisation early in theirevolution, rapidly expanding into foreign markets. They represent a relatively new breed of theinternational SME—those are innovative smaller firmsthat undertake early and substantialinternationalisation and pursue businessopportunities everywhere, regardless of nationalborders. The internet and communications technologies andlow-cost transportation facilitate early and efficientinternational operations. |
|
|
What key factors have contributed to thesuccess of Alibaba.com? |
The identification of a niche market. The willingness of taking risks to become the market leader in, and pioneer of, the Chinese B2B industry. A number of different platform and payment servicesto facilitate business transactions involving both smalland large orders. Jack Ma’s entrepreneurship and reputation in theindustry. |
|
|
What are some of the challenges thatAlibaba.com faces? |
Control over the listings of the goods, Payment issues, Online fraud and Competition from other online platforms. Leader succession planning |
|
|
With B2C and B2B activities on the rise andmore people now using the internet to purchasegoods, what future do you see for retail shops andlarge warehouses that sell to businesses andconsumers? |
The low-end consumer good markets: music stores,bookshops and other consumer goods. For the mid- to high-end products like cars, consumersprefer to physically browse for the product before makinga purchase. Although the number of online transactionshas rapidly increased, the amount of these transactionsremains relatively low. This would indicate that the shopping malls and warehouses will continue to be part of our shopping behaviour for some years to come. |
