Term
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Definition
| process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs |
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Term
| Multinational enterprise (MNE) |
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Definition
| a company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least 2 countries. |
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Term
| foreign direct investment (FDI) |
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Definition
| a firms investments in value-chain activities abroad. |
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Term
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Definition
| a firms strategy to gain and sustain a competitive advantage when competing against other foreign and domestic companies around the world. |
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Definition
| additional costs of doing business in an unfamiliar cultural and economic environment, and of coordinating across geographic distances. |
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Term
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Definition
| assumption that consumer needs and preferences throughout the world are converging and thus becoming increasingly homogenous. |
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Term
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Definition
| strategy pursued by MNEs that attempts to maximize local responsiveness, with the intent that local consumers will perceive them to be domestic companies; strategy arises out of the combination of high pressure for local responsiveness and low pressure for cost reductions; also called a multi-domestic strategy |
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Term
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Definition
| strategy that involves leveraging home-based core competencies by selling the same products or services in both domestic and foreign markets; advantageous when the MNE faces low pressures for both local responsiveness and cost reductions. |
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Term
| integration-responsiveness framework |
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Definition
| strategy framework that juxtaposes that pressures an MNE faces for cost reductions and local responsiveness to derive 4 different strategies to gain and sustain competitive advantage when competing globally: international strategy, localization strategy, global-standardization strategy, and transnational strategy |
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Term
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Definition
| the need to tailor product and service offerings to fit local consumer preferences and host-country requirements; generally entails higher cost. |
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Term
| global-standardization strategy |
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Definition
| strategy attempting to reap significant economies of scale and location economies by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost. |
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Term
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Definition
| strategy that attempts to combine the benefits of a localization strategy; sometimes called glocalization. |
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Term
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Definition
| the part of the strategic management process that concerns the organization coordination, and integration of how work gets done. It is key to gaining and sustaining competitive advantage. |
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Term
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Definition
| the process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization. |
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Term
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Definition
| an element of organizational structure that captures the extent to which employee behavior is controlled by explicit and codified rules and procedures |
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Term
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Definition
| an element of organizational structure that describes the degree to which a task is divided into separate jos |
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Term
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Definition
| a key building block of organizational design that determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. |
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Term
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Definition
| an element of organizational structure that refers to the degree to which decision making is concentrated at the top of the organization. |
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Term
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Definition
| organizational form characterized by a low degree of specialization and formalization, a flat organizational structure, and decentralized decision making. |
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Term
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Definition
| the number of employees who directly report to a manager |
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Term
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Definition
| an element of organizational structure tat determines that formal, position-based reporting lines and thus stipulates who reports to whom. |
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Term
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Definition
| organizational structure that groups employees into distinct functional areas based on domain expertise. |
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Term
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Definition
| organizational structure in which the founders tend to make all the important strategic decisions as well as run the day to day operations. |
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Term
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Definition
| organizational form characterized by a high degree of specialization and formulation, and a tall hierarchy that relies on centralized decision making. |
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Term
| multidivisional structure (M-form) |
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Definition
| organizational structure that consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility. |
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Term
| multidivisional structure (M-form) |
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Definition
| organizational structure that consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility. |
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Term
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Definition
| organizational structure that combines the functional structure with the m-form |
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Term
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Definition
| the collectively shared values and norms of an organization's members; a key building block of organizational design. |
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Term
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Definition
| mechanisms in strategic control and reward system that seek to guide employee behavior by defining expected results (outputs) but leave that means to those results open to individual employees, groups, or SBUs. |
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Term
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Definition
| mechanisms in a strategic control and reward system that seeks to define and direct employee behavior through a set of explicit and codified rules and standard operating procedures, considering prior to the value-creating activities. |
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Term
| strategic control and reward systems |
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Definition
| a key building block of organizational design; internal-governance mechanisms put in place to align the incentives of principles (shareholders) and agents (employees) |
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Term
| stakeholder impact analysis |
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Definition
| a decision tool with which managers can recognize, assess, and address the needs of different stakeholders , to allow the firm to perform optimally and act as a good corporate citizen. |
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Term
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Definition
| a theoretical framework concerned with how various stakeholders create and trade value; its main thesis is that effective management the web of exchange relationships among stakeholders can help the firm achieve its goals and improve its chances of gaining and sustaining competitive advantage |
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Definition
| an integrative approach to connect corporate governance, business ethics, and strategic leadership |
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Term
| corporate social responsibility |
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Definition
| a framework that helps firms recognize and address the economic, legal, socials, and philanthropic expectations that society has of the business enterprise at a given point in time. |
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Definition
| a system of mechanisms to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally |
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Term
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Definition
| a theory that views the firm as a nexus of legal contracts. |
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Term
| board of directors-outside |
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Definition
| board members who are not employees of the firm, but who are frequently senior executives from other firms or full-time professionals. Given their independence, they are more likely to watch out for shareholders interests. |
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Term
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Definition
| board members who are generally part of the companys senior management team; appointed by shareholders to provide the board with necessary information pertaining to the companys internal workings and performance |
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Term
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Definition
| the centerpiece of corporate governance, composed of inside and outside directors, who are elected by the shareholders to represent their interests |
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Term
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Definition
| an incentive mechanism to align the interests of shareholders and managers, by giving the recipient the right to buy a companys stock at a predetermined price sometime in the suture. |
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Definition
| an agreed upon code of conduct in business, based on societal norms. |
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Term
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Definition
| the behaviors and styles of executives that influence others to achieve organizational goals. |
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Term
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Definition
| a conceptual framework that states that its the top management team that primarily determines the success or failure of an organization through the strategies they pursue. |
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Term
| level 5 leadership pyramid |
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Definition
| a conceptual framework of leadership progression with 5 distinct, sequential levels. |
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