Tutorial 9 Flashcards
(37 cards)
Chapter 15
global integration strategies
Strategies that focus
on synergies between operations at different locations.
Chapter 15
local responsiveness strategy
Strategies that deliver locally adapted products in each market
Chapter 15
home replication strategy
A strategy that emphasizes international replication
of home country-based competencies such
as production scales, distribution efficiencies and brand power.
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**Four strategic choices for multinational enterprises: **
Home replication advantages vs disadvantages
**Pro: **
* Leverages home country-based advantages
* Relatively easy to implement
Con:
* Lack of local responsiveness
* May result in foreign customer alienation
Chapter 15
**Four strategic choices for multinational enterprises: ** Localization advantages vs disadvantages
Pro:
* Maximizes local responsiveness
Con:
* High costs due to duplication of efforts in multiple countries
* Too much local autonomy
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**Four strategic choices for multinational enterprises: **
Global standards advantages vs disadvantages
Pro:
* Leverages economies of scale
* Emphasizes integrated innovation
Con:
* Lack of local responsiveness
* Too much centralized control
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**Four strategic choices for multinational enterprises: **
Transnational advantages vs disadvantages
Pro:
* Cost-efficient while being locally responsive
* Engages in global learning and diffusion of innovations
Con:
* Organizationally complex
* Difficult to implement
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localization(multidomestic) strategy
A strategy that focuses on a number of foreign countries/ regions, each of which is regarded as a stand-alone ‘local’ (domestic) market worthy of significant attention and adaptation.
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global standards strategy
A strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages.
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transnational strategy
A strategy that aims to be simultaneously cost- efficient, locally responsive and learning-driven around the world.
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international division
A structure bundling all international activities into one unit.
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global product division
An organizational structure that assigns global responsibilities to each product division.
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global matrix
An organizational structure with two set lines of authority, typically a regional line and a product line.
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subsidiary initatives
The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibility.
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knowledeg management
The structures, processes and systems that actively develop, leverage and transfer knowledge.
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explicit knowledge
Knowledge that is codifiable (that is, can be written down and transferred with little loss of its richness).
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tacit knowledge
Knowledge that is non-codifiable, and its acquisition and transfer require hands-on practice.
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organizational strategy
Knowledge held in an organization that goes beyond the knowledge of the individual members.
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boundary spanner
Individuals with strong networks across business units, and frequently communicating with their network.
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reverse knowledge transfer
Knowledge created in a subsidiary being transferred from the subsidiary to a parent organization.
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community of practice
Group of people doing similar or related work and sharing knowledge about their practices of work.
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knowledge governance
The structures and mechanisms MNEs use to facilitate the creation, integration, sharing and utilization of knowledge.
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absorptive capacity
The ability to recognize the value of new information, assimilate it and apply it.
Chapter 15
social capital
The informal benefits individuals and organizations derive from their social structures and networks.
