S4: Environmental scanning & market estimate Flashcards
Why does culture matter in international business?
Culture matters because it influences everything that people have, think, and do as members of their society.
Define culture in the context of international business.
Culture is the operating system of a society, encompassing everything that people have, think, and do.
Explain the concept of layers of culture.
Layers of culture represent various aspects of societal norms, values, and behaviors that operate in the background.
What is power distance, and how does it influence management style?
Power distance refers to the degree of interaction between superiors and subordinates. High power distance implies autocratic or paternalistic management, while low power distance suggests a consultative style.
Describe the cultural dimensions of individualism vs. collectivism.
High individualism values challenges and independence, while high collectivism prefers a safe and cooperative work environment.
What are the potential problem areas hindering managers’ cultural awareness?
Subconscious reactions like ethnocentrism and the assumption that all societal subgroups are similar.
Why is becoming culturally aware essential for managers in international business?
Managers who educate themselves about other cultures have a greater chance of succeeding abroad.
Explain the method of analogy in market estimation, specifically Lead-Lag analysis.
Lead-Lag analysis uses the ratio of market potential for a product with a certain economic indicator in one country to calculate market potential in another country where data for the economic indicator is available.
What are proxy indicators, and why are they useful in market estimation?
Proxy indicators are indirect variables used to estimate market potential in situations where direct measures are difficult to obtain.
Briefly describe the chain ratio method in market estimation.
The chain ratio method is an arithmetic technique using ratios to reduce a base population, aiming to derive a realistic demand.
What is time series modeling in the context of market potential estimation?
Time series modeling relies on historical records to predict future market potential, making it an excellent method if longitudinal demand data for the product are available.
How does multiple regression modeling contribute to predicting future sales?
Multiple regression modeling uses multiple factors to predict future sales, providing a more comprehensive analysis.
