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International Management > Exam 2 > Flashcards

Exam 2 Flashcards

(60 cards)

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0
Q

Informal international cooperative alliance

A

Usually limited in scope and time, a marriage of convenience, often unknown to competitors, easy to dissolve, no contract required, no legal entity

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1
Q

3 types of alliances

A

Informal international cooperative alliance, formal international cooperative alliance, international joint venture

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2
Q

Formal international cooperative alliance

A

Deeper involvement requiring exchange of proprietary company knowledge and sources, more difficult to dissolve due to contracts, visible to competitors, no legal entity

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3
Q

International joint venture

A

Deep involvement due to requirement of exchange of a lot of stuff, entire separate legal entity

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4
Q

ICA

A

International cooperative alliance

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5
Q

IJV

A

International joint venture

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6
Q

Management structures

A

Dominant parent, shared management, split control management, independent management, and rotating management

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7
Q

Dominant parent management structure

A

One controls or dominates strategic AND operational decision making, usually due to equity stake

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8
Q

Shared management

A

Both parent companies contribute approximately the same number of managers to the alliance organization often due to similar technical contributions

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9
Q

Split control management

A

Partners often share strategic decision making and split functional due to different technologies

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10
Q

Independent management

A

Alliance managers act more like managers from separate firms

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11
Q

Rotating management

A

Key positions rotate among partners

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12
Q

The soft side of alliance management

A

Commitment and trust

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13
Q

Attitudinal commitment

A

Willingness to dedicate resources and face risks to make the alliance work

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14
Q

Calculative commitment

A

More practical and includes alliance partner evaluations, expectations and concerns regarding potential rewards because businesses require tangible outcomes for a relationship to continue

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15
Q

Two types of trust

A

Credibility and benevolent

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16
Q

Credibility trust

A

Confidence that a partner has intent and ability to meet promised commitments

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17
Q

Benevolent trust

A

Confidence that the partner will behave with goodwill and with fair exchange

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18
Q

Export department

A

Created when exports become significant, deals with international sales of all products

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19
Q

Foreign subsidiaries

A

Subunit of multinational located in another country

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20
Q

Types of subsidiaries

A

Minireplica, transnational

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21
Q

Minireplica subsidiaries

A

Scaled down version of parent company, uses same technology and produces same products as parent

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22
Q

Transnational subsidiaries

A

Each subsidiary contributes what it does best/most efficiently anywhere in the world

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23
Q

International division vs world wide geographic structure

A

International division is just one unit of MNC that focuses on the international aspect (not great when company has multiple countries) worldwide geographic structure has a geographical unit for each world region

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24
Worldwide matrix structure
Geographic divisions focus more on local responsiveness while product divisions focus on global efficiencies and global products
25
Problems with matrix structures
Slow decisions, too bureaucratic, too many meetings, too much conflict
26
Transnational network structure
Network of functional, product and geographic subsidiaries dispersed worldwide, consist of dispersed subunits, specialized operations, and interdependent relationships
27
Metanational structure
Encourages organizational learning and entrepreneurialism, targets emerging markets
28
Chain of multinational structure
Expired departments, product/geographic structure, matrix or transnational network
29
Control system
Helps link organization vertically, up and down the hierarchy, basic functions include mess hinging performance of subunits and providing feedback to subunit managers
30
Coordination systems
Horizontal organizational links, provide information flows among subsidiaries to for coordination and sharing of best practices
31
6 basic horizontal coordination systems
Textual communications, direct contact, liaison roles, task force, full time integrators, teams
32
Types of knowledge
Explicit (what to know) tacit (who to know)
33
Global integration solution
Conduct business similarly throughout the world
34
Local responsiveness solution
Respond to differences in markets/customize to country or regional differences
35
4 broad multinational strategies
Transnational, international, multi domestic, regional
36
Transnational strategy
BEST LOCATION Top priority is to seek location advantages and gain economic efficiencies from operating worldwide, location advantage of dispersing value chain activities worldwide
37
International strategy
GLOBAL selling global products and using similar marketing technique at worldwide
38
Multi domestic strategy
LOCAL the company attempts to offer products that attract customers by closely satisfying their cultural needs, emphasis on local responsiveness
39
Regional strategy
COMBINATION Managing raw material sourcing, production, marketing, and support activities with in a particular region
40
When to choose a transnational rather than an international
Select a transnational when the benefits of dispersing activities worldwide offset the costs of coordinating a more complex organization
41
4 global drivers
Markets, cost, governments, and competition
42
4 participation strategies components
Exporting, licensing, strategic alliances, foreign direct investment
43
Exporting strategies
Passive exporter, indirect exporting and direct exporting
44
Passive exporter
Company that treats and fills overseas orders like domestic orders
45
Licensing
Contractual agreement between a domestic licensor and a foreign licensee which often generates only low revenues, licensee has valuable patent which licensee pays royalties to use
46
International strategic alliances
Cooperative agreements between firms from different countries to participate in business activities
47
FDI
Foreign direct investment- companies own and control directly a foreign operation (symbolizes the highest stage of internationalization)
48
2 business models with the internationalization of small businesses
Small business stage model, born global firms
49
Small business stage model
(6 stage model) passive exporting, export management, export department, sales branches, production abroad, the transnational
50
Born global firms
Companies that begin as multinationals at inception and globalize rapidly
51
Global culture
Managerial/worker values that view strategic opportunities as global, not just domestic
52
International sales intensity
Initial sales/total sales
53
Pros of being a small business
Speed
54
Pros of being first movies
First to introduce product, innovative, have first access to resources
55
4 types of ecommerce
B2C, B2B, C2C, and C2B
56
2 indicators of global presence of ecommerce
Secure server, and Internet hosts
57
Secure server
An Internet host that allows users to send and receiver encrypted data
58
Internet hosts
Computers connected to the Internet with their own IP address
59
2 factors to keep in mind when picking a market
Market inefficiencies, and attractive demographic (high literacy rate, Internet population of at least 5%)

International Management (3 decks)

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