Chapter 16 To Know Flashcards Preview

MGMT Exam #4 > Chapter 16 To Know > Flashcards

Flashcards in Chapter 16 To Know Deck (28):
1

Developing and selling products and services to all 7.6 billion people currently on the planet

Figuring out how to provide for the 9 billion by 2043

Global business bottom line

2

Globalization is both

Personal and corporate

3

The increased mobility of goods, services, labor, technology, capital throughout the world

The process of growing interdependence among elements of the global economy

Globalization

4

6 reasons to go global

New markets: customers/ profits
Sourcing: suppliers of goods/ services
Financing: capital to expand ops
Labor: low cost and skilled
Risk: business, natural, county
Technology: communication, data

5

Major reason to go global

To increase earnings

6

Global strategic forms a business may take

Global (top left)
Transnational (top right)
International (low left)
Multinational (low right)

7

Integration responsiveness grid

X & Y (the two pressures)

Pressure for local responsiveness (x)
Pressure for global integration (y)

8

Being in every single town

Global integration

9

Adjustment of food mix/products for different countries

Local responsiveness

10

Invested and present in many countries
Coordinated brand image
Single corporate office strategy direction

Global

McDonalds ex

11

Focus on importing and exporting
Strategic direction from home county
Low to moderate investment outside of home country

International

Xerox and Ducati ex

12

Substantial investment in other countries
Focus on adapting products for local markets
Strategy is more home/host county directed

Multinational

Toyota example

13

Substantial investment globally
Decision making, R&D, marketing distributed locally
Competitors compete globally

Transnational
Nestle ex
Coca-Cola and PepsiCo

14

Ways to enter market from home country

Global sourcing
Exporting
Licensing
Franchising

15

Ways to enter market in host country

Joint ventures
Foreign subsidiaries

16

Importing is the first step
Get materials or services from around the world for local use

Global sourcing

17

Example of Global sourcing

Boeing 787 Dreamliner

18

Selling local (home) country products outside of the home country

Exporting

19

Example of exporting

Gulfstream G650: largest number of its planes sold elsewhere than the U.S

20

A form of business by which the owner (licensor) gives rights to s buyer (licensee) for specific uses of intangible or tangible property (a license)

Licensing

21

Renting or leasing an intangible or tangible asset

Global licensing

22

Ex of intangible licensing

Movie theatre renting an intangible movie

23

Example of tangible licensing

Disney rents or gives a license to a company to make tangible products such as figurines

24

A form of business by which the owner (franchiser) of a product, service or method obtains distribution through affiliated dealers (franchisees)

Franchising

25

Examples of franchising

Yum Brands a U.S company has three divisions: Pizza Hut, KFC, Taco Bell

26

Number one advantage of global franchising

Capital expansion

27

Examples of joint ventures

GM & SAIC
-selling in South America
Xerox and UAE
-service partnership

28

Examples of Subsidaries

ABInBev (Belgium Owned)
Smithfield (China Owned)
Firestone (Japanese Owned)
Ben and Jerry’s (England & Dutch)