Term
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Definition
| The disorientaiton and stress associated with being in a foreign environment |
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Term
| Why do firms choose to pursue a global strategy? |
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Definition
Pressure to reduce costs
Universal need
Presence of competitors |
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Term
| What are the 4 or 5 modes of market entry in overseas markets? |
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Definition
Franchising
Licensing
Exporting
Joint Venture
Wholly Owned Subsidiary |
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Term
| What are the advantages/disadvantage of Franchising? |
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Definition
A: Lower development costs, Lower political risk
D: Loss of control over quality |
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Term
| What are the advantages/disadvantages of Licensing? |
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Definition
A: Lower development costs, Lower political risk
D: Loss of control over technology |
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Term
| What are the advantages/disadvantages of Exporting? |
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Definition
A: Consistent with pure global strategy, Scale economies
D: No low-costs sites, high transportation costs, tariff barriers |
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Term
| What are the advantages/disadvantages of a Joint Venture? |
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Definition
A: Local knowledge, Share costs and risk, May be the only option
D: Loss of control over technology, Conflict between partners |
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Term
| What are the advantages/disadvantages of a Wholly Owned Subsidiary? |
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Definition
A: Maintains control over technology, Maintains control over operations
D: High cost, High risk |
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Term
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Definition
When the company sells limited rights to use its brand name to franchisees in return for a lump-sum payment and a share of the franchisee's profits
-Primarily used for service companies
i.e. McDonald's, Auntie Anne's |
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Term
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Definition
| When a company manufactures a product in one location and then exports it to other nations |
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Term
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Definition
| When a licensee buys the rights to manufacture a company's product in its own country for a negotiated fee (typically royalities per units sold) |
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Term
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Definition
| A contractual agreement that joins two parties in order to run a business. All parties share profits & losses of enterprise. |
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Term
| What is a Wholly Owned Subsidiary? |
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Definition
| An independent company owned by the parent corporation, most costly and risky |
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Term
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Definition
| Parent-company nationals who are sent to work at a foreign subsidiary |
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Term
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Definition
| A foreign national brought in to work at the parent company |
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Term
| What are some of the differences in business practices across cultures? |
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Definition
| Meetings, Workaholic schedules, E-mail, Fast-trackers, Feedback |
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Term
| What contributes to effective management of culture shock? |
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Definition
| Being sensitive to surroundings, including social nroms/customs, and being readily able to adjust their behavior to such circumstances |
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Term
An organizational chart shows _________.
Span of control is ___________. |
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Definition
who reports to whom.
the number of individuals who report to a manger. |
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Term
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Definition
Specialization
Division of Labor |
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Term
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Definition
Coordination
Collaboration
Communication |
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Term
| A succesful organization is both... |
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Definition
| differntiated AND integrated |
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Term
| Current trends show that more organizations are...(flat/horizontal OR tall/vertical)? |
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Definition
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Term
| Centralized vs. Decentralized |
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Definition
Centralized = Upper management makes most decisions, little delegation, often vertical
Decentralized = Authoirty is delegated throughout organization, often horizontal |
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Term
| What is a mechanistic organization? |
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Definition
| Form that seeks to maximize internal efficiency |
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Term
| What is organic structure? |
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Definition
| An organizational form that emphasizes flexibility |
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Term
| What is Total Quality Management? |
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Definition
| Supports customer satisfaction through high-quality goods and services |
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Term
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Definition
| Quality standards to improve total quality in all businesses for the benefit of producers/consumers, developed by Internationl Organization for Standardization |
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Term
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Definition
| "Pull" system where products are only made when needed |
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