Which two strategies become less viable as competition increases for a company?

What are three sources a company can use to achieve economies of scale?

Differentiation across countries is more likely to(decrease or increase?)

By moving downward on the experience curve, a company will___its profitability

When a company is pressured to reduce costs of its products, it will lead to lowercosts of ____ creation.

McDonald's is increasingly finding that its foreign franchisees are a source ofvaluable new ideas. Which aspect of creating value is McDonald's takingadvantage of in this instance?

Universal needs exist with which two of these products? Choose all that apply.

Companies typically face two types of competitive pressures when entering globalmarkets. What are these two pressures?

Choose three factors that pressure a firm to respond locally when they enter theglobal marketplace.

Production and marketing responsibilities are typically delegated to _____ whencustomer preferences create a strong pressure for local responsiveness.

True or false: Being locally responsive tends to raise costs for a company.True or false: A lack of homogeneity in the global marketplace is evident in the

worldwide acceptance of McDonald's hamburgers.

True or false: Competitive pressures are present if a firm produces a specialtyproduct that can be differentiated by non-price factors.

Consumers through-out the world have the same use for sugar -- it is used as asweetener in every country. Sugar is an example of a(n) ____ need.

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Level 105

Strategy of International Business

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the makeup of an industry: its number of sellers and their size distribution, the nature of the product, and the extent of barriers to entry

a framework used to assess industry structure and business strategy in estimating the potential for profitability (competitive rivalry, threat of new entrants, substitutes, supplier power and buyer power)

industry organization (IO) paradigm

field of economics that studies the strategic behaviour of firms, the structure of markets, and their interactions

the principle that managers' choices are the basis of building and sustaining a high-performance enterprise in unpredictable, tumultuous, and fast-moving times

Refers to the various methods that businesses can use in an attempt to achieve their mission or vision. Strategies then form long-term plans for the whole organisation

Determined by the personal ans situational factors.

a business strategy in which a firm gains competitive advantage by reducing costs, for a given level of quality, below its competitors

a business strategy in which a company tries to gain a competitive advantage by providing a unique product or service, or providing a unique brand of customer service

the collective activities that occur as a product moves from raw materials through production to final distribution; the disaggregation of value creation

sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale, including inbound logistics, operations, outbound logist…

Activities of the value chain that either add value through important relationships with both primary activities and other support activities

cost advantages arising from performing a value activity in the optimal location

to set up, arrange, and disperse value activities to the ideal locations around the world so that a company can start and sustain operations

concentrated configuration

the design of a value chain whereby a particular activity is performed in one geographic location and serves the world market from it

the design of a value chain whereby a particular activity is performed in many geographic locations and serves the world market from any to all of its units

follows from the congregation of buyers and sellers of a particular good or service in a certain locale; they, in turn, induce buyers and sellers to relocate there

the part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption to meet customers' requirements

the conversion of paper and other media in existing collections to digital form

systems that synchronize the work responsibilities of the value chain so that the company uses its resources efficiently and makes decisions effectively

a special outlook, skill, capability, or technology that runs through the firm's operations, weaving together disparate value activities into an integrated value chain

the unification of distinct national economic systems into one global market; standardizing global activities in order to maximize efficiency

process of disaggregating a standardized whole into differentiated parts to improve responsiveness to local market circumstances; adapting to local activities in order to optimize effectiveness

Integration-Responsiveness (IR) Grid

scheme that helps managers measure the global and local pressures that influence the configuration and coordination of value chains

the effort of managers to create value by transferring core competencies from the home market to foreign markets in which local competitors lack those competencies

configuring a value chain to exploit location economies as well as coordinate activities to leverage core competencies while simultaneously responding to local pressures

a strategy by which a firm tailors its products and services to the needs of each country or region in which it operates and gives a great deal of power to the managers and associ…

Selling the same standardized product and using the same basic marketing approach in each national market

combination of globalization, regionalization and localization; champions consistent global values and customized local tactics within a regional context

What actions can managers take to compete more effectively in a global economy?

A firm's strategy can be defined as the actions that managers take to attain the goals of the firm

that makes or is likely to make money

the percentage increase in net profits over time

To increase the profitability of a firm?

value must be created for the consumer

is measured by the difference between V(value of product to an average customer) and C(the costs f production per unit)

To maximize profitability, a firm must

Organization architecture

the totality of a firm's organization - formal organizational structure, control systems and incentives, organizational culture, processes, and people

the formal division of the organization into subunits

the metrics used to measure the performance of subunits and make judgments about how well the subunits are run

Monetary payments and other rewards of value used for positive reinforcement

the manner in which decisions are made and work is performed

The set of beliefs, values, and norms, together with symbols like dramatized events and personalities, that represents the unique character of an organization and provides the context for action in it and by it.

employees and the strategy used to recruit, compensate, and retain those individuals

skills within the firm that competitors cannot easily match or imitate

the systematic reductions in production costs that have been observed to occur over the life of a product

cost savings that come from learning by doing

why does ATC and MC slope downward?

To help increase firm value, managers should

-recognize that valuable skills can be developed anywhere within the firm's global network (not just at the corporate center)

pressures for cost reductions

Firms that compete in the global marketplace typically face two types of competitive pressures

Pressures for local responsiveness arise from

differences in consumer tastes and preferences

global standardization strategy

focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies

focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets

is the choice of strategy static?

As competition increases, international and localization strategies become less viable

Project-based ventures that don't require equity commitment, just willingness to cooperate.

Strategic alliances are attractive because they

facilitate entry into a foreign market

Drawbacks of strategic alliances

Strategic alliances can give competitors low-cost routes to new technology and markets

Many international strategic alliances run into problems

how can firms increase the success of their alliances?

When competition intensifies which two strategies become less viable to use?

Which of the following is one of the two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace?

What are the two types of competitive pressures that firms competing in the global marketplace face?

What are the two ways a firm can create more value for its products?