ib week 6 lecture

 0    58 fiche    dklekowski
Télécharger mP3 Imprimer jouer consultez
 
question English réponse English
factors that make international expansion more interesting for the companies
commencer à apprendre
push factors and pull factors
push factors
commencer à apprendre
entry of international competitors in home country; saturation of home market; strong competition in home market; internationalization of customers
pull factors
commencer à apprendre
success in home market; attraction of new customers; entrepreneurial spirit; calls from abroad; learning from competitors
resources
commencer à apprendre
productive assets of the firm
capabilities
commencer à apprendre
abilities of firms to use resources
VRIO
commencer à apprendre
characteristics that create a sustainable competitive advantage (Valuable, Rare, Inimitable, Organized to capture value)
Competitive disadvantage
commencer à apprendre
resource or capability that is not valuable
competitive parity
commencer à apprendre
resource or capability that is valuable but not rare
temporary competitive advantage
commencer à apprendre
resource or capability that is valuable and rare but not costly to imitate
unexploited competitive advantage
commencer à apprendre
resource or capability that is valuable, rare and costly to imitate but not organized to capture value
sustained competitive advantage
commencer à apprendre
resource or capability that is valuable, rare, costly to imitate and organized to capture value
country atractiveness factors
commencer à apprendre
market, resource endowments, competition, institutions
4 strategic objectives in expanding internationally
commencer à apprendre
1. natural resource seeking; 2. market seeking; 3. efficiency-enhancing; 4. capability-enhancing
non-equity expansion modes
commencer à apprendre
exporting, licensing, and franchising
equity expansion modes
commencer à apprendre
joint ventures, greenfield operations or acquisitions
restrictive local mandates
commencer à apprendre
local subsidiaries need to operate within strict boundaries of their task and responsibility
liability of outsidership is caused by
commencer à apprendre
distant origins; lack of local experience; lack of nearby experience
key factors for market seeking
commencer à apprendre
strong market demand and customers are willing to pay
key factors for natural resource seeking
commencer à apprendre
quality and costs of natural resources
key factors for efficiency-enhancing
commencer à apprendre
abundance of cheap and qualified labour force and suppliers; transportation and communication structure; proximity to customers
key factors for capability-enhancing
commencer à apprendre
innovative individuals, firms and universities, industry clusters
non-equity modes
commencer à apprendre
international transactions take place between two or more independent companies, but there is no equity involved
equity modes
commencer à apprendre
follow FDI, only these result in ownership of foreign operations
licensing
commencer à apprendre
one firm sells another firm rights to use a different technology or trademark
franchising
commencer à apprendre
"licensing" that covers an entire business concept rather than just the product or the trademark
joint ventures
commencer à apprendre
partnerships at which two or more independent companies establish a joint company under a new name
greenfields
commencer à apprendre
subsidiaries established from scratch
international acquisiotions
commencer à apprendre
buying foreign companies to enter a particular country
OLI framework
commencer à apprendre
conditions under which FDI is the most appropriate business; Ownership, Location, and Internalization Advantages
Ownership Advantage
commencer à apprendre
internal firm-specific capability that is transferable across borders; e.g. brands, patents
cultural distance
commencer à apprendre
difference between two cultures along some identifiable dimensions
institutional distance
commencer à apprendre
extent of similarity or dissimilarity between the regulatory, normative and cognitive institutions of two countries
comparative Location Advantage
commencer à apprendre
is it more attractive to locate new activity in the foreign country than at home?
vertical FDI
commencer à apprendre
production. locating assets or employees in foreign countries with the purpose of securing production (e.g. somewhere with different weather or raw materials)
horizontal FDI
commencer à apprendre
ability to sell products abroad. desirable to produce abroad if there are protectionist barriers, high transport costs, etc.
created factor conditions
commencer à apprendre
skilled labour, scientific knowledge
natural factor conditions
commencer à apprendre
may be undesirable factor conditions
demand conditions
commencer à apprendre
strong advantage if domestic demand is large and sophisticated. demand heterogenity: within-country differences
managerial practices
commencer à apprendre
different corporate regulations
presence of related and supporting industries
commencer à apprendre
suppliers and producers of related products contributing to efficiency and innovation
horizontal expansion
commencer à apprendre
about the merits of licensing a local producer in a foreign market before commiting to a foreign investment
vertical expansion
commencer à apprendre
the beneficial comparative advantage in foreign locations by buying inputs or exporting to that market
Internalization Advantage
commencer à apprendre
market exchange has to come with high transcation costs; is it more attractive to have the activity performed by external party or by the company itself?
hold up problem
commencer à apprendre
being very reliant on the supplier, which leads to them being able to hold you up and force you to agree to worse conditions as you have no other options
4 strategies for organizing the multinational company
commencer à apprendre
global standars (global products division), transnational (global matrix), home replication (international division), localization (geographic area strategy)
global standardization strategy
commencer à apprendre
high global integration and low local reponsiveness (autonomy); standardized products worldwide; Warner Bros - same films shown across different countries, but also centralized activities in home country
home replication strategy
commencer à apprendre
low global integration and low local reponsiveness; replicating the firm in a new market with low adaptation to local tastes or needs; Starbucks - replicating coffee stores without adapting products in any way
transnational strategy
commencer à apprendre
high global integration and high local reponsiveness; Netflix - domestic productions in local markets to adapt to consumer tastes; geographical divisions to serve different content in different countries
localization strategy
commencer à apprendre
low global integration and high local reponsvieness; number of foreign countries, regarding each as a standalone local domestic market worthy of attention and adaptation; McDonald's - large standardized core around which it innovates
lack of absorptive capacity
commencer à apprendre
capacity to recognize the value of new knowledge and apply it
FDI
commencer à apprendre
directly investing in activities that control and manage value creation in other countries
foreign portfolio investment (FPI)
commencer à apprendre
investment in a portfolio of foreign securities such as sotcks and bonds
horizontal FDI (explained better)
commencer à apprendre
duplicating home country-based activities at the same stage in the value chain in a host country through foreign direct investment
vertical FDI (explained better)
commencer à apprendre
foreign direct investment in which a firm moves upstream or downstream in different value chain strategies in a host country
upstream vertical FDI
commencer à apprendre
for example gaining control over natural resources (similar to vertical integration backwards)
downstream vertical FDI
commencer à apprendre
for example gaining control over distribution facilities (similar to vertical integration forward)
FDI flow
commencer à apprendre
amount of FDI moving in a given period in a certain direction (inbound (inflow) - moving into a country; outbound (outflow) - moving out of a country)
FDI stock
commencer à apprendre
total value of foreign-owned firms operating in a country or controlled by a country's firms abroad at a certain point in time

Vous devez vous connecter pour poster un commentaire.