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2nd Semester Classes 4th Year > Business Policy II Midterm > Flashcards

Business Policy II Midterm Flashcards

1
Q

Chapter 1

A
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2
Q

CAGE Framework /4 provide one example of each?

A
  1. Cultural Distance: Religious Beliefs and Norms
  2. Administrative/Political Beliefs: Government policies
  3. Geographic Distance: Physical distance
  4. Economic Distance: Consumer income
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3
Q

What are the 3 M’s to become an MNE?

A

Motivations, Means, Mentality

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4
Q

What are the two types of Motivations

A
  1. Traditional (70’s)
  2. Emerging (80’s onwards
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5
Q

List two Traditional Motivations

A
  1. Resource Seeking: Securing supplies or Cost factors
  2. Market seeking: Filling our capacity or exploiting economies of scale
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6
Q

List 2 Emerging motivations

A
  1. Competitive Positioning: to help pre-empt others
  2. Global Scanning: Find emerging trends and new tech/skills
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7
Q

3 Means/Prerequisites of becoming an MNE /3

A
  1. Location Advantage
  2. Ownership/strategic advantage
  3. Org Capabilities
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8
Q

the Processes of going MNE /3

A
  1. Classic Internalization process:
  2. internet integration
  3. Strength of Global Entrepreneur
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9
Q

Classic internalization process

A

Definition: incremental process of increasing commitment and understanding the foreign market
EASY WAY(Internet)
1. Control over foreign activities
2. Amount of resources committed to foreign maket

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10
Q

Global Entrepreneur Checklist /5 (DPASO)

A
  1. Sees distance as an opportunity
  2. Clear global purpose
  3. Strikes alliances when weak
  4. Manages good supply chains
  5. Establish multinational orgs from the outset
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11
Q

Entry-Modes for MNEs /3 Provide 2 examples of each

A
  1. Export: Indirect or Direct
  2. Investment: joint Venture or Acquisition
  3. Contractual: License or Franchise
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12
Q

Types of MNE Mentalities /4

A
  1. International Mentality (Coordinated Federation)
  2. Multinational Mentality (Decentralized)
  3. Global Mentality (Centralized Hub)
  4. Transnational Mentality (Integrated Network)
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13
Q

Give an example of a company with a Multinational mentality.

A

McDonalds or Coca Cola

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14
Q

Give an example of a company with a Global mentality.

A

Ikea

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15
Q

Give an example of a company with a Transnational mentality.

A

Amazon, Apple

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16
Q

Chapter 2

A
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17
Q

What are the conflicts from external environments that are pushing companies to become MNEs?

A
  1. Cross-border integration & coordination
  2. National differentiation & responsiveness
  3. Worldwide innovation and learning
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18
Q

Cross-Border integration & Coordination Forces /4 (EFGL)

A
  1. Economies of Scale/Scope
  2. Factor Costs
  3. Expanding Spiral of Globalization
  4. Increasing liberalized environment for Trade
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19
Q

4 different forces influencing National Differentiation & Responsiveness (CIGL)

A
  1. Cultural Differences: Preferences
  2. National Infrastructure: Local standards and distribution Channels
  3. Government Demands: National Laws
  4. Local Competitors Success: Appealing to Nationalism
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20
Q

Types of Political Risk Analysis & Management /3

A
  1. Passage of Laws
  2. Strengths of Political Leaders
  3. Rise of Popular Movement
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21
Q

4 ways MNE can manage Political Risk

A
  1. Recruit local partenrs
  2. Limit R&D aborad to avoid IP infringement
  3. Insurance
  4. Diversifying their FDI
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22
Q

4 Forces of Worldwide Innovation and Learning (PIEC)

A
  1. Shortening Product Life-Cycles
  2. Increased costs of R&D
  3. Emergence of global tech standards
  4. competitors’ ability to develop and diffuse innovation globally
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23
Q

Responses for Worldwide Innovation and Learning in Global Industries

A
  1. Global Industries: Economic forces for globalization
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24
Q

Sources of Conflict for MNE /3 (Motivators, objectives and measures)

A
  1. Motivators: Strategic viability & Operational viability (Profit)
  2. Objectives: Freedom to integrate & move resources freely across borders
  3. Measures: Profit & ROI
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25
Sources of Conflict for host country /3 (Motivators, objectives and measures)
1. Motivators: National independence 2. Objectives: Protect national sovereignty 3. Measures: Social cost/benefit
26
Sources of Power for MNE /4
1. No investment or exit option 2. Ability to align with national priorities 3. Home country support 4. Position in global economy
27
Sources. of Power Host Government /3
1. Legislative power 2. Market Power 3. Shift in power after investment
28
4-Step Political Risk Framework (UAMR)
1. Understand: What is my org's political risk appetite? 2. Analyze: Gaining info 3. Mitigate: How can we reduce exposure? 4. Respond: Are we reacting effectively?
29
What are the 3 Core Competitive Competencies (GWN)
1. Global efficiency 2. Worldwide Innovation & Learning 3. National Responsiveness
30
What is Multinational Flexibility?
Ability to exploit opportunities and manage risks due to diversity and local preferences
31
3 Requirements of Multinational Flexibility (ssu)
1. Scanning global environment 2. Selecting most attractive markets 3. Understanding and managing risk
32
3 components to build worldwide learning (CLD)
1. Capture Strategic Benefits 2. Leverage Internal Variety 3. Develop a worldwide learning system to help innovation
33
The means on how to deliver strategic objectives /3 (NSS)
1. National Differences 2. Scale Economies 3. Scope Economies
34
Types of National Differences
1. Labour costs 2. Emergence of a large middle class
35
Strategic Orientation of a Multinational Firm
Build flexibility to respond to national differences
36
Strategic Orientation of a Global Firm
Exploit parent company knowledge and capabilities through worldwide diffusion
37
Strategic Orientation of an International Firm
Building cost advantages through a centralized global operation
38
Strategic Orientation of a Transnational Firm
Develop global efficiency, flexibility and worldwide learning simultaneously
39
Strategic Tasks of keeping a Worldwide Competitive Advantage /3 (DCP)
1. Defend worldwide dominance 2. Challenge the global leader 3. Protect domestic niches
40
3 courses of action to protect domestic Niches (DOA)
1. Defend against competitors' global advantage 2. Offset competitors' global advantage (ex. lobby for tariffs) 3. Approximate competitor's global advantage
41
Middle-class purchasing ability matrix /2
1. Affordability 2. Accessibility
42
What is AI eliminating in the business process?
It is eliminating Traditional Operating Constraints
43
3 Basic Org Capability Archetypes /3 (DCC)
1. Decentralized Federation (Multinational org) 2. Coordinated Federation (International org) 3. Centralized hub (Global org)
44
Strategy for A decentralized Federation (Multinational org)
National Responsiveness (Able to understand and respond in national markets)
45
Strategy for a Coordinated Federation (Internationalist Org)
Knowledge Transfer (think of worldwide learning)
46
Strategy for a Centralized hub (Global org)
Global Efficiency (capturing economies of scale)
47
What were the 2 failures of the Global Matrix /3 (CD)
1. Country vs Business Tensions 2. Ineffective Decision Making
48
2 Solutions to Global Matrix failure
1. Administrative system 2. Communication channel 3. Interpersonal Relationships
49
Client-Server Model
is a process but no definition of relationships
50
Global Brand-Local Touch Model
Communicates a culture but philosophy unconnected to business model
51
What happens when there is a new structural anatomy in an org?
It is redistributing Assets and Responsibilities
52
A new process of Physiology in the org is when?
Redefining info flows and relationships
53
A new Cultural psychology introduced in an org is when?
Readjusting attitudes, mentalities & beliefs
54
3 core org characteristics in a Transnational organization? (IPACIP)
1. Builds multiple internal perspectives 2. Develops interdependent physical assets and capabilities 3. Creates robust and flexible integrative processes
55
Area structure in the "Early Theory Diagram" represent
Companies with a narrow product list but, entering lots of new countries
56
Worldwide Learning mechanisms are shaped by what in Multinational Industries?
Multinational Industries: Shaped by national and political forces of localization
57
What Worldwide forces are at hand in International Industries?
International Industries: Shaped by tech forces developing and diffusing
58
What are the 3 key activities that help a successful cross-border innovation
1. Sense (S) 2. Respond (R) 3. Implement (I)
59
Center-for-global processes for innovation
- Opportunity sensed in home country, developed using centralized sources
60
Local-for-local innovation process
- Subsidiary-focused opportunity sensing and innovation development (Used for global Businesses)
61
What is the emerging innovation modal "Locally Leveraged"
- Subsidiaries shares knowledge and capabilities shared worldwide
62
What is the Emerging innovation model "Globally Linked"?
- Worldwide resources are jointly used to create and develop innovations
63
4 ways to make central innovations effective? /4 (SNRM)
1. Gaining subsidiary input (multiple linkages between people in the business) 2. Responding to national needs (giving subsidiaries resources needed) 3. Managing Responsibility Transfer (using cross0function integration for personnel flow) 4. Leading-edge manufacturing process
64
How to make local Innovations Efficient /4
1. Empowering local managers 2. Local managers have more decision-making capabilities 3. Integrate subsidiary functions 4. encourage multi-level and cross-functional integration
65
How to make Transnational innovations Feasible
1. Symmetry to Differentiation (product per geo region) 2. dependence/independence to interdependence (Making an integrated network) 3. Simple control to flexible coordination (use of everyone using resources)
66
Chapter 6
67
Strategic Alliances top 3
1. Joint Ventures 2. Capital participation 3. Acquisition
68
What is the Alliance Frontier Graph?
Shows company's strengths and weaknesses in the markets and tech pushing inwards or outwards the alliance frontier if it is Short-term vs long-term.
69
When should you resort to a Joint venture?
Only as a last resort
70
Types of control in Joint Ventrue agreements /2
1. Shared control over everything 2. Split Control
71
Joint Venture Checklist /5 (TPSDM)
1. Test the strategic logic of the fit 2. Partnership & Fit: Similar morals, culture, and objectives 3. Shape & Design: Define the SCOPE OF ACTIVITY (narrow vs wide) 4. Doing the Deal: Legalities and agreeing on the ENDGAME 5. Making the venture work: Being FLEXIBLE with resources and allowing top management to pay attention.
72
Chapter 7
73
Responsibilities of a Global Business Manager
1. Develop Global Efficiency & competitiveness
74
What is the role of a Global Business Strategist
- to keep the business strategy consistent with the corporate strategy - incorporate perspectives of both geographic & functional managers
75
What is the role of a Cross-border Coordinator:
- priority of high-importance products to control - Decide on strategic locations
76
Architect of Assets & Resource configuration roles:
- Oversee worldwide distribution - link resources into the integrated system
77
What type of management is needed to have an effective Implementation in transnational markets /4
1. Global business Management 2. Worldwide Functional Management 3. Geographic Subsidiary management 4. Top-level corporate Management
78
Worldwide Functional Management positions /3
1. Worldwide Intelligence Scanner 2. Cross-pollinator 3. champion of Transnational Innovation
79
What is a Worldwide Intelligence scanner?
They capture and transmit info globally
80
What is a Cross-pollinator?
They find and evaluate leading-edge practices
81
What are the 2 groups of "champion of Transnational innovation" groups?
1. Locally Leveraged: Identifying local innovations 2. Globally Linked: exploit company's access to worldwide info by linking company sources.
82
The traditional role of a Geographic Subsidiary Manager? /3
1. Source of Sales & profit 2. Access to local factors of production 3. Leverage parent company's resources
83
What are the 3 new roles of Geographic subsidiary managers?
1. Bicultural interpreter 2. National Defender & Advocate 3. Frontline Implementer of Corporate Strategy
84
Causes of failure for a Bicultural interpreter?
1. Upward Communication cause: blocked channels of communication from HQ 2. Downward Communication: Weak understanding of corporate strategy
85
Cause of failure for a national Defender & Advocate?
1. CM is unwilling to act as a defender of subsidiary interests
86
What are the usual causes of failure of a Frontline Implementer of Corporate Strategy?
- CM is unable to make complex trade-offs and compromises required for success
87
3 things Top-level Corporate management must do /3
1. Provide Long-term direction & purpose 2. Leverage Corporate Performance 3. Ensure Continuous Renewal

2nd Semester Classes 4th Year (4 decks)

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