Introduction to IB chapter 15 Flashcards
(28 cards)
global (aggregation) strategies
Strategies that focus on integrating synergies between world-wide operations at different locations
Local responsiveness (adaptation) strategy
Strategies that aim at the delivery of customized, tailored products to each market, and serve consumers on their local terms.
Integration-responsiveness framework
A framework of MNE management on how to simultaneously deal with global integration and local responsiveness
Home replication strategy
A strategy that believes that the replication of home country-based competencies of a company is the best way to transfer competencies of the firm abroad
Localization (multidomestic) strategy
A strategy that is focused on multiple different countries or region, everyone of which is regarded as a separate (stand-alone) local market. Typically used when clear differences between the countries/regions can be seen
Global standards strategy
strategy that focuses on the key advantages of the MNE over local firms within a market (e.g. scale, arbitrage, knowledge, integration, global clients, risk diversification)
Transnational strategy
A strategy that aims to be simultaneously cost-efficient, locally responsive and learning-driven around the world (free flow of knowledge between subsidiaries and headquarters)
Corporate headquarters (HQ)
MNE’s central unit that hosts corporate executives as well as central staff functions
International division
A division within a company that aims to take care of all international activities of a company
Geographic structure
An organizational structure that organizes MNE according to different countries and regions
Regional headquarters
An organizational unit coordinating and supporting activities within a given region
Global product division
An organizational structure that assigns global responsibilities to each product division (e.g. military products, railways, cars, civilian aircrafts)
Global matrix structure
An organizational structure with two set lines of authority, typically a regional line and a product line
Worldwide (global) mandate
A charter to be responsible for one MNE function throughout the world
Subsidiary initiatives
Subsidiaries with the autonomy to design their own subsidiary-level strategies and agendas, to increase its degree of responsibility
Knowledge management
structures, processes and systems that actively develop, leverage and disseminate knowledge
Explicit knowledge
knowledge that can be written down and transferred with little loss of its richness. All knowledge used by IT is explicit
Tacit knowledge
knowledge that cannot be written down, it can only be acquired through learning by doing (practice)
Organizational (team-embedded) knowledge
Knowledge held in an organization that goes beyond the knowledge of the individual members
Boundary spanners
Individuals with strong networks across business units and frequently communicate with their network
Reverse knowledge transfer
knowledge created in a subsidiary and then transferred to a parent organization
Community of practice (CoP)
A group of people doing similar or related tasks and sharing knowledge about their practices of work
Knowledge governance
The structures and mechanisms MNEs use to facilitate the creation integration, dissemination and utilization of knowledge
Virtual communities of practice
CoP only working via internet
