1.3 Competitive Advantage in a Globalized World Flashcards

Question

World value survey

Answer 1

Different values, what do people find most or least important 10 basic values that connect and correlate Also contradict each other

Answer 2

Benevolence (welfare of close others) Conformity (obey rules/norms) Tradition Security Power (wealth, control) Achievement Hedonism (pleasure) Stimulation (excitment) Self direction (freedom) Universalism (welfare of all)

Answer 3

Important for companies to succeed internationally Be informed about the culture Do not believe yours is better Understand and participate fluently in another culture Key to achieving competitive advantage

Answer 4

Evaluating other cultures based on your cultures norms and standards Belief that your culture is the “correct” one

Answer 5

Countries specialize in the production and export of goods that they produce most efficiently They import goods that they cannot produce efficiently

Answer 6

Has an emphasis on the role of economies of scale Larger production volumes reduce the cost of production due to learning effects and spread fixed capital over high number of units Create gains for trade through lower consumer prices and higher product variety First mover advantages explain national advantages in the production of goods

Answer 7

Adam Smith - absolute advantage David Reicardo - comparative advantage Hecksher-ohlin - role of factor endowments

Answer 8

Firm strategy, structure and rivalry Factor endowments Demand conditions Related and supporting industries Government Chance

Answer 9

Domestic rivalry is instrumental to international business as if forces companies to develop unique and sustainable strengths and capabilities The more intense the rivalry is, the more companies are pushed to be innovative and maintain/gain competitive advantage

Answer 10

Natural, capital and human resources available Porter argues that created factor conditions such as skilled labour force, good infrastructure and scientific knowledge are more important instead of natural factors (such as oil)

Answer 11

Refer to how favorable industries within a nation are Larger markets mean more challenges but also created opportunities to grow and become better as a company Ideally, good demand conditions not only has local customers who are sophisticated but also push the company to grow, innovate and improve quality

Answer 12

The foundation on which the focal industry can excel Companies are reliant on alliances and partnerships to create additional value fro customers and be more competitive Suppliers are crucial to enhancing innovation through more efficient and high quality inputs If the suppliers are global competitors its good

Answer 13

Government is a catalyst and challenger here Porter believes hat the government is not an essential helper and support to create competitive industries, only companies can do that Governments should encourage and push companies to raise their aspirations and move to even higher levels of competitiveness through infrastructure, education systems, good health sector, promoting rivalry, by enforcing antitrust laws and encourage change

Answer 14

Chance of world events might lead to advantages for some companies: war, natural disasters, covid.. These factors cannot change, but they should be monitored so that you can make decisions as necessary to adapt to the changing market conditions

Answer 15

Humans resource acquisition Human resource development Compensation Design of work systems Labour relations - in an international context these might look a bit different as they might need to have staffing policies

Answer 16

Selecting individuals who have the skills required to do particular jobs A tool for developing and promoting the desired corporate culture of the firm New employees also need to have a good connection or match well with the company’s culture

Answer 17

Ethnocentric staffing policy Poly centric staffing policy Geocentric staffing policy

Answer 18

Key management positions are filled by parent-country nationals Adopt because the firm may Believe the host country law qualified people to fill these roles Feel this is the best way to maintain a unified corporate culture Relive that the best way to transfer core competencies is to transfer parent country nationals who have knowledge of that competency to the foreign operation

Answer 19

Host country nationals are recruited to manage subsidiaries, while parent country nationals occupy key positions at corporate headquarters Pros/cons: local knowledge and understanding Less expensive than ethnocentric approach Host country nationals have limited opportunities to gain experience outside their own culture and thus cannot process

Answer 20

Seeks the best people for key jobs through the organization, regardless of nationality Pros/cons: makes best use of firms human resources International executives Firms better able to create value Reduce one culture overshadowing, enhance local responsiveness Expensive and complex

Answer 21

Globalization has required firms to adopt more geocentric approach More important to build diverse workforces Shift toward greater economic nationalism might affect HR strategy Tougher policies toward legal migration will make it more difficult to move talent around the world

1.3 Competitive Advantage in a Globalized World Flashcards

(45 cards)