TNC's Trans national companies Flashcards
(50 cards)
Transnational companies are typically huge
False, most are small to medium sized enterprizes
What facrors make a market attractive to enter
its size, if its structure (what people spend on and if the economies is growing) as well as the barriers to entry
Nowadays the most important assets sought by TNC’s are socially created knowledge and labor
True
What aspects of labour might be attractive to a TNC
Their level of education, wage cost, productivity and controllability (union mambership and temper)
What is the conventional path of transnatinalization
start domestically, then start to export, then establish sales outlets internationally and lastly establish productin facilities overseas
What factors influence how TNC’s organize their networks
The industry environments in which it operates (competition, regulation etc), its history and its georgraphy influencing preferences
What characteristics have south east Asian firms
formation of intra and inter firm relationships, reliance on personal relationsships and a strong realtionship between businesses and the state.
What characterizes Japanese keiretsu firms
transactions through affiliated companies, long term stability in interfirm relationships which are deep and personal characterizzed by investing in eachother and symbolic links
What characterizes south korean chaebol firms
High centralization, vertical integration and family ownership
What characterizes taiwanese firms
Horizontal integration and specialization
What is the multinational organizational model
Federal like structure where HQ does little and subsidiaries are viewed as portfolio of independent businesses
What is the international organization model
Subbsidiaries oversee functions but are seen as apendages to a single global oranization
What is the global organization model
Where HQ controles all central decitions and subsidiaries are mear pipelines to international markets
What is the integrated network organization model
Shared decition making between HQ and subsidiaries
What are the possible roles of a subbsidiary
To adapt products to local markets, to contribute with specialized skills or particular responsibility
What characterizes the corporate HQ
They set the budget, are the legual person of the firm and handles the ecemination between departments
WHat doe regional HQ’s of a firm do
Respond to regional developments, gather intelligence and initiates regional ventures
Where should a regional HQ be placed
In a strategic location for transport and communication with access to external services and important people
What pelaces are known to be good places for local HQ’s
The global cities of New York, Tokio, London and Paris
Regional Headquarters are less often moved compared to the firm HQ
False, regional are often moved while the ultimate HQ is almost never
What types of RND department types are there in a TNC in relation to independence
The support laboratory that only adapts brekthroughs to the local environment, the locally integrated RND department that reseaches topics relevant to the particular market and lastly the international interdependent RND department that does reseach relevant for the entire firm
Why do firms keep their RND in HQ
Becouse of untraded interdependencies like the tacit knowledge, knowhow and experties that comes from the locations history in that field
Name some strategies of transnational production organization
Globally concentrated (one factory at home producing for the globe), host market production, product specialization (different products produced in different countries) as well as transnational vertical integration.
What is commercial outsourcing
When another firm manufactors the finished good where the brand and marketing belongs to another company
