International Strategy Flashcards
(22 cards)
Q: What factors to consider when choosing a foreign market entry mode?
IMAGEM
home country factors, home environemntal factos, market, production,
commitment factors level of control
attitude and experience goals and objectives
product factors resources and capablieiies
§Goals and objectives of the firm, such as desired profitability, market share, or competitive positioning
§Degree of control desired regarding decisions, operations, and assets involved in a venture
§The firm’s financial, organizational, and technological resources and capabilities (strengths and weaknesses)
Q: Avalia Exporting, global sourcing, licensing and franchising, collaborative ventures, equity joint vevnture, whole owned subsidiary regarding control available to the focal over foreign operations, resource commitment, flexibility, risk(not for all types of risk).
imagem
What are the advanatges of exporting?
increase overal volume of sales improve market share increase economies of scale diversify customer base stabilize sales fluctuations associated with seasonality minimize the cost minimize the risk maximize the flexibility
What are the disavantages of exporting
sensitivie to tarrifs
sensitive to exchange rates
fewer opportunities to learn about customers
may require the firm to learn new capabilities
advanatges of licensor
low investment
low effort once established
low involvement
loe-cost initial strategy
disadvantage of licensor
limites control oover assets abroad
performance depend on foreign license
runs the risk of creating future competitor
advanatges of franchising
low effort once established
low investment
can internationalize quickly to many markets
can leverage franchisee local knowledge
disadvantages of franchising
risks losing reputation because it has limited control aroad
risks creating a future competitor
maintaining control can be difficult
What’s FDI, green field,
manufacture
maufacture administration and marketing
What’s the advantages of collaborative ventures?
help you learn and achieve goals that could have not achieved alone
helps overcome the risk and high costs of international business
Why do so many Aliances ad EJV fail?
Incompatibility incongruent goals opportunistic behavior culture class assymetry inadequate management of the alliance /EJV
What are 4 Cs of a strategic alliance?
Complementarity
congruent goals
compatibility
change (HOW WILL THE OTHER 3C’S CHANGE OVER THE COURSE OF THE ALLIANCE)
What’s liability of foreigness?
china in other markets stereoptype
entry mode choice is a choice of what?
firm’s internal strenghts and weaknesses and external environemnt
What determines the choice between standardization and adaptation/localization?
global convergence of tastes
need for costs reductions and efficiency
cultural differences
presence of strong local competitors or strong global competitors
availability and differences in distribution channels
local restrictctions
What’s 4 choices of strategies when operating globally regarding pressures for local responsiveness
and presurres for global inetgation
GLOBAL STARTEGY-
transnational strategy
-homereplication startegy (home replication markets are not considered a priority, only a way of adding incremental sales, products are not adopted, no information flow back to home
multidomestic strategy
what is homereplication strategy and its downsides?
little control over how products are marketed
rely heavily on foreign intermediaries
LIMITS CA ABROAD
multidomestic
Local managers operate foreign subsidiaries and have high levelof independece and autonomy to be locally responsive
Products and services are adapted to suit the needs and wants of buyers in each country
Country managers are often nationals of the host country
Knowledge flows between subsidiaries is limited
downsides of multidomestical
Strategies cultures business processes can differ considerably between countries and between home country and host country.
Reduced economies of scale
Limited information sharing and learning opportunities
Subsidiaries have little incentive to share knowledge and experience with managers in other locations or in the home country
Inefficiency (operations, marketing, manufacturing etc)
downsides of global
Downsides?
o Strategies, cultures, business processes can differ considerably between countries and between home country and host country
o Subsidiaries have little incentive to share knowledge and experience with managers in other locations or in the home country
o Reduced economies of scale
o Limited information sharing, limited learning opportunities
o Inefficiency (operations, marketing, manufacturing etc)
What’s transnational staretgy
o To be responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning.
o Combine the major advantages of multidomestic and global strategies, while minimizing their disadvantages. o Standardize where feasible; adapt where appropriate.
Standardize where feasible; adapt where appropriate.
downsides of transnational
o To be responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning.
o Combine the major advantages of multidomestic and global strategies, while minimizing their disadvantages. o Standardize where feasible; adapt where appropriate.
Standardize where feasible; adapt where appropriate.
