Chapter 12 Flashcards
(20 cards)
Strategy
A planned set of actions that managers employ to make best use of the firm’s resources and core competencies to gain competitive advantage
Visionary leadership
A quality of executive management that provides inspirational guidance and motivation to personnel, leading the firm to a better future
Organizational Culture
The pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt
Organizational processes
Managerial routines, behaviors, and mechanisms that allow the firm to function as intended
Global team
An internationally distributed group of employees charged with a specific problem-solving or best-practice mandate that affects company operations, or a major aspect of company operations, worldwide
Multidomestic industry
An industry in which competition takes place on a country-by-country basis
Global industry
An industry in which competition is on a regional or worldwide scale
Global integration
Coordination of the firm’s value-chain activities across countries to achieve worldwide efficiency, synergy, and cross-fertilization in order to take maximum advantage of similarities between countries
Local responsiveness
Management of the firm’s value-chain activities on a country-by-country basis to address diverse opportunities and risks
Home replication strategy
An approach in which the firm views international business as separate from, and secondary to, its domestic business
Multidomestic strategy
An approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness
Global Strategy
An approach in which headquarters seeks substantial control over its country operations in order to minimize redundancy and maximize efficiency, learning, and integration worldwide
Transnational strategy
A coordinated approach to internationalization in which the firm strives to be relatively responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning
Organizational structure
Reporting relationships inside the firm that specify the links between people, functions, and processes
Export department
A unit within the firm charged with managing the firm’s export operations
International division structure
An organizational design in which all international activities are centralized within one division in the firm, separate from domestic units
Geographic Area structure
An organizational design in which management and control are decentralized to the level of individual geographic regions
Product structure
An arrangement in which management of international operations is organized by major product line
Functional structure
An arrangement in which management of the firm’s international operations is organized by functional activity, such as production and marketing
Global matrix structure
An arrangement that blends the geographic area, product, and functional structures to leverage the benefits of a purely global strategy while keeping the firm responsive to local needs
