Chapter 8 Flashcards
hold tremendous growth potential for the pharmaceutical industry
emerging markets
are uniquely positioned for manufacturing, offer attractive labor costs and skilled workforce, face issues related to protection of intellectual property, quality and safety, and pricing and profit margin
indian drug markets
process of determining an organization’s basic mission and long-term objectives, implementing a plan of action for pursuing the mission and attaining the objectives
strategic management
helps an MNC coordinate and monitor its far-flung operations and deal with political risk, competition, and currency instability
strategic planning
worldwide strategy based on cost leadership, differentiation, and segmentation, MNCs sell products for which a large portion of value is added in upstream activities of the industry value chain, used when product is regarded as a generic good and does not have to be sold based on name brand or support service
economic imperative
strategy formulation and implementation utilizing strategies that are country-responsive and designed to protect local market niches, MNCs sell products for which a large portion of value is added in downstream activities of value chain
political imperative
takes two interdependent paths, change in attitudes and raising of expectations for service quality, implementation of management practices designed to make quality improvement an ongoing process
quality imperative
implementation of management practices designed to make quality improvement an ongoing process
total quality management
MNC makes strategic decisions based on merits of the individual situation, used when rapid, flexible decision-making is needed to close the sale, least common approach to formulation and implementation of strategy
administrative coordination
production and distribution of products and services of a homogenous type and quality on a worldwide basis
global integration
need to understand different consumer tastes in segmented regional markets, respond to different national standards and regulations imposed by autonomous governments and agencies
national responsiveness
mixed strategy combining low demand for integration and responsiveness
international strategy
differentiated strategy emphasizing local adaption
multi-domestic strategy
integrated strategy based primarily on price competition
global strategy
integrated strategy emphasizing both global integration and local responsiveness
transnational strategy
provides management with accurate forecasts of trends
environmental scanning
helps firms evaluate their current managerial,technical, material, and financial resources and capabilities
internal resource analysis
dictate how well a firm is likely to do
key success factors
process of providing goods and services in accord with a plan of action
strategy implementation
unique subset of emerging economies, less correlated to ups and downs of the global economy, offer potentially high rewards with high risk
frontier markets
what are the four Ps in marketing
product
price
promotion
place
being the first or one of the first to enter a market
first-mover strategies
strategy targeting low-income customers in developing countries, forces companies to consider smaller scale strategies, ideal for incubating new, leapfrog technologies that reduce environmental impacts and increase social benefit
base of pyramid
combination of innovative, proactive, and risk-seeking behavior, crosses national borders and is intended to create value in organizations
international entrepreneurship
