To what extent should local differences be recognised? (Douglas & Wind) • Responsiveness v cost reduction? International Corporate Structure International Corporate Structure • • • • • Domestic International Multinational (or Multidomestic) Global Transnational? Domestic Structure Benefits If low global competitive pressures Highly specific products or services Know your customer Need to build a strong home base Firm A competes in country x Risks All eggs in one basket – vulnerable to
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functions in local country but head office exercises tight control over it ■ Limit customization of product offering and market strategy – Strategy effective if firm faces weak pressures for local responsive and cost reductions Multidomestic Strategy ■ Main aim is maximum local responsiveness ■ Customize product offering‚ market strategy including production‚ and R&D according to national conditions ■ Generally unable to realize value from experience curve effects and
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THEME 8: GENERIC STRATEGIES 1. Introduction. 2. The Porter’s approach: competitive strategies (cost advantage‚ differentiation advantage and specialization). 3. The Ansoff’s approach: the Growth Matrix (market penetration‚ product development‚ market development‚ and diversification). 4. An integrating approach. © Alfonso VARGAS SÁNCHEZ 1 Hope is not a strategy‚ specially when internationalizing the company is the intention 2 Strategic Analysis: Compulsory Questions What business
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1. Which of the following statements is most correct? Select one: a. KSFs are often sufficient‚ but not necessary for competitive advantage. b. KSFs are often necessary‚ but not sufficient for competitive advantage. c. KSFs are both necessary and sufficient for competitive advantage. Incorrect d. KSFs are neither necessary nor sufficient for competitive advantage. e. None of the above statements is correct. 2. The purpose of NAFTA is to: Select one: a. provide fair and equitable tariff rates
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Harzing (2000) uses a different division of the multinational companies and separates them in relation to organizational design and subsidiary role‚ local responsiveness and interdependence. The identified types are: Multidomestic‚ Global and Transnational (Harzing‚ 2000). Multidomestic typology combines high national responsiveness and domestic competition‚ implying that the company responds to national differences and has a decentralized structure‚ although scores low on global competition and economies
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ot26/12/2012 An Organization’s Environment (a) Competitors‚ industry size and (g) Recession‚ unemployment rate‚ competitiveness‚ related issues inflation rate‚ rate of investment‚ (j) (a) (b) Suppliers‚ economics‚ growth International Industry manufacturers‚ real (h) City‚ state‚ federal laws Sector Sector estate‚ services and regulations‚ taxes‚ (i) (b) (c) Labor market‚ services‚ court system‚ Sociocultural DOMAIN Raw Materials Sector employment agencies‚ political
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Acknowledgement First of all we would like to thank our honorable instructor Md.Mamoon Al Bashir to give us the opportunity to prove our potentiality‚ who has been very friendly‚ helpful‚ and co-operative for the whole semester. We would like to thank our all group members who were very much friendly and sincere to complete the project work. Above all‚ this term paper is a combined effort of the sincerity‚ efficiency and determination of all the group members. However‚ we hope that this
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Chapter 10 International Competitive Strategy True / False Questions 1. (p. 166) International strategy helps firms to make choices about how to deploy scarce resources in order to achieve their international objectives. TRUE As stated directly in the text. AACSB: Reflective thinking Bloom’s: Understand Difficulty: 2 Medium Learning Objective: 10-01 Explain international strategy; competencies; and international competitive advantage. Topic Area: What is international strategy‚ and why
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Tata Motors 1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was
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Wal-Mart shareholders’ report Done by Anastasia Boyko‚ January 13‚ 2013 Wal-Mart is the world’s biggest consumer goods retail seller that is doing better than the three of its closest competitors brought together. It mainly operates in the US‚ but is also represented in 27 foreign countries. The key to its success lies in a set of competitive advantages that are low prices achieved due to the great bargaining power of the company when dealing with suppliers and a very efficient logistics system
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