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Global business
for bus5000
| Term | Definition |
|---|---|
| “global strategy” is | a firm’s intention to provide standardized products and/or services on a world-wide basis |
| best definition for “global strategy” is | each firm’s theory about how to compete successfully in whatever global markets the firm chooses to compete. |
| It is dangerous for a global strategy to ignore | less-developed economies. |
| "strategy as plan" | suggests that strategy is embodied in the same explicit rigorous formal planning as in the military |
| "strategy as action" | the key to strategy is a set of flexible goal-oriented actions; favors an indirect approach, which seeks rapid flexible actions to avoid clashing with opponents head-on |
| "strategy as integration"/"strategy as theory" | the essence of strategy is likely to be a combination of both planned deliberate actions and unplanned emergent activities |
| keiretsu | inter-firm network |
| guanxi | interpersonal networks |
| the Triad markets | North America, Europe, and Japan |
| referred to as BRIC | Brazil, Russia, India, and China |
| In developed countries, the widespread use of (blank) in the 1960s and 1970s was found to destroy value and was largely discredited in the 1980s and 1990s | unrelated product diversification (conglomerate diversification) |
| conglomerate diversification | seems to be alive and well in many emerging economies because of its relatively positive link with performance that may be a function of the level of institutional (under)development in these countries. |
| The industry-based view | attends to the degree of competitiveness in the industry |
| The resource-based view | evaluates success or failure on firm-specific differences in capabilities and the resulting performance differences |
| The institution-based view | attends to institutional forces, such as economic reforms and government policy, which may affect a firm’s success or failure. |
| traditional and narrowly defined notion of “global strategy” refers to | a particular theory on how to compete and is centered on offering standardized products and services on a world-wide basis |
| most accurate and insightful definition of global strategy in college texts and classrooms is | the strategy of firms around the world; each firm’s theory about how to compete successfully in whatever country’s markets the firm chooses to compete. |
| Semi-globalization | chooses a middle ground between opposition and unconditional acceptance of globalization. |
| textbook definition of global strategy | each firm’s theory about how to compete successfully in whatever global markets the firm chooses to compete. |
| Multi-market competition occurs when | firms engage the same rivals in multiple markets |
| mutual forbearance | firms recognize their rivals’ ability to retaliate in multiple markets, such multi-market competition may result in reduction of competitive intensity among rivals |
| The three legs of the strategy tripod include | industry-based considerations, resource-based considerations, and institution-based considerations. |
| collusion | collective attempts to reduce competition |
| Tacit collusion occurs when | firms indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels |
| Explicit collusion exists when | firms directly negotiate output and pricing and divide markets; ultimately this type of collusion leads to the formation of a cartel, which is an output and price-fixing entity involving multiple competitors |
| The U.S. has some of the oldest anti-trust laws governing competition: | The Sherman Act of 1890, The Clayton Act of 1914, and Hart-Scott-Rodino (HSR) Act of 1976. |
| occurs when firms engage the same rivals in multiple markets. | multi-market competition |
| Thrust: | the classic frontal attack with brute force |
| Feint: | a firm’s attack on a focal arena important to a competitor, but not the attacker’s true target area |
| Gambit: | a move that sacrifices a low-value piece in order to capture a high-value piece or improve one’s position significantly |
| two sets of pressures of global scale – | to reduce costs and to develop local responsiveness |
| the four strategic choices for MNEs are | (1) home replication, (2) localization (multi-domestic), (3) global standardization, and (4) transnational. |
| Industrial-products firms value | technological and engineering knowledge, which is not location-specific, such as how to most efficiently make semiconductor chips |
| Consumer-goods industries must value | intimate knowledge about consumer tastes, which are location-specific. |
| an “integrated network” model or the “N-form" | The ideal relationship between headquarters and subsidiaries and among subsidiaries themselves would follow a model that leverages business and cultural diversity. This relationship is called |
| open innovation | The ______________________ model of knowledge management relies on more collaborative research, among various internal units, with external firms (through R&D contracts, alliances, and outsourcing), and with university labs. |
| _ is the inherent disadvantage foreign firms experience in host countries because of their non-native status. | liability of foreignness |
| _____ is adding new businesses to the firm that are distinct from its existing operations. | diversification |
| what are the three "legs" of the strategy tripod that ensure a strategy impacts performance? | industry-based competition, firm-specific resources and capabilities, and institutional conditions and transitions |
| why study global strategy? | firms will eventually interact with foreign-owned suppliers, buyers, and customers |
| "global strategy" refers to | offering standardized products and services on a worldwide basis |
| strategy as a theory describes how to compete successfully in a global market and continue to give coherence to _____ | decisions and actions |
| managing global competitive dynamics comes down to | how industry, resource, and institution-based considerations influence their competitive/cooperative actions (r) |
| the three drivers of counterattacks do not include___ | vengeance (r) |
| what is a resource based strategy concerned with? | firms creating value when engaging in strategic actions (w) |
| how is strategy as action best defined? | the perspective that suggests the key interaction where actions and responses can yield a competitive advantage (r) |
| four strategic choices for MNEs do not include ___ | domestic (r) |
| localization (multi-domestic) strategy is an extension of the ____and focuses on a number of foreign countries/regions | home replication strategy (w) |
| which structure is used to supply customers (often other MNEs) in a coordinated and consistent way across various countries? | global account structure (w) |
| which is true of globalized R&D? | for large firms, there are actually diminishing returns for R&D (r) |
| which is true of relatedness? | relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm (w) |
| research regarding the relationship between product diversification and firm performance indicates that all of the following is true except ___ | putting your eggs in different baskets has emerged as a balanced way to both reduce risk and leverage synergy (w) |
| which of the following is most characteristic of conglomerates? | limited international scope (w) |
| diversification premium is the same thing as which of the following | conglomerate advantage (r) |
| the differences in formal and informal institutions that govern the rules of the game in different countries include _____differences | regulatory, language, and cultural (w) |
| which of the following does not exemplify a trade barrier? | nationalization (r) |
| which of the following is not a regulatory risk? | recent trends among host governments regarding their relationship with MNEs (w) |
| the strategic goal of ____ involves pursuing business in locations featuring a combination of scale economies and low-cost factors | efficiency seeking (w) |
Created by:
bitchalaureateofscience
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