International Management Exam 1

ethical analysis
one that goes beyond focusing on profit goals & legal regulations
generic strategies
basic ways both domestic & multiple co’s keep & achieve competitive advantage
competitive advantage
when a company can outmatch its rivals in attracting & maintaining its targeted customers
differentiation strategy
strategy based on finding ways to provide superior value to customers
low-cost strategy
producing p or s equal to those of competitors at a lower cost
value chain
all the activities that a firm uses to design, produce market & deliver & support its product
offensive competitive strategies
direct attacks, end-run offensives, preemptive strategies & acquisitions
defensive competitive strategies
attempts to reduce risks of being attacked, convince attacking firm to seek other targets or blunt impact of attack
7 D
cultural model based on beliefs regarding how people relate to eachother, how people manage time & how people deal with nature
hofstede model
Power Distance
Uncertainty Avoidance
Individualism
Masculinity
Long-term Orientation
multinational company
company that engages in business functions beyond its domestic borders
multinational management
the formulation of strategies & designs of management systems that successfully take advantage of international opportunities & respond to international threat
Developed Countries
countries with mature economies, high GDP, high levels of trade & investment
Developing Countries
countries with economies that have grown extensively in past 2 decades
Transition Countries
in the process of changing from government controlled economic systems to capitalistic systems
Globalization
world wide trend of cross border economic integration that allows business to expand beyond their domestic boundaries
Emerging Markets
countries that are currently between developed and developing countries & are rapidly growing
Less Developed Countries
the poorest nations often plagues with unstable political regimes, high unemployment & low worker skills
Key forces that drive globalization
falling borders
growing cross border trade & investment
rise of global products & global customers
growing of internet & sophisticated I.T.
privatization of formerly government owned companies
new competition
rise of global standards for production quality
Culture
pervasive & shared beliefs, norms,& values that guide everyday life of a group
Pervasive
idea that culture affects almost everything we do, see, feel & believe
characteristics of next generations multinational managers
global mindset
emotional intelligence
long range perspective
talent to motivate all employees to achieve excellence
negotiating skills
willingness to seek overseas assignments
understanding of national cultures
cultural beliefs
our understanding about what is true
cultural symbols
maybe physical such as national flags or holy artifacts; in workplace, office size & location can serve as …
cultural norms
prescribed & proscribed behaviors, telling us what we can / cant do
cultural values
tell us such things as what is good, beautiful, holy & legitimate goals in life
Shared cultural values, norms& beliefs
idea that people in different cultural groups have similar views of the world
levels of culture
influence, including national business & occupational & organizational culture
cultural stories
include nursery rhymes & traditional legends
cultural rituals
ceremonies such as baptism, graduation, tricks played on new workers or pledge to greek life
organizational culture
the norms values & beliefs concerning the organization that are shared by members of the organization
Global Leadership & Organizational Behavior Effectiveness – GLOBE
recent large scale project based on hofstede’s model to determine 9 cultural dimensions of 62 countries
occupational cultures
distinct cultures of groups such as physicians, lawyers, & crafts people
Hofstede model of national culture
cultural model mainly based on differences in values & beliefs regarding work goals
Ethnocentrism
when people from one culture believe that theirs are the only correct norms, values & beliefs
Cultural Relativism
philosophical position arguing that all cultures no matter how different are correct & moral for the people of those cultures
cultural paradoxes
when individual situations seem to contradict cultural prescriptions
Stereotyping
when one assumes that all people within a culture behave, believe, feel & act the same
Social Institution
complex of positions, roles,norms, values of organizations relatively stable patterns of human resources with respect to sustaining viable societal structures within given environment
cultural intelligence
the ability to interact effectively in multiple cultures
National Context
national culture & social institutions that influence how managers make decisions regarding the strategies of their organizations
Capatilistic / Market Economies
system where production is decentralized to private owners who carry out these activities to make profits
Index of Economic freedom
determines the extent of government intervention in a country
economic system
system of beliefs, activities, organizations, & relationships, that provide the goods and services consumed by the members of a society
Industrialization
cultural & economic changes that occur because of how production is organized & distributed by society
preindustrial society
characterized by agricultural dominance & shaping of economic environment
Socialist / Command Economy
production resources are owned by state & production decisions are centrally coordinated
mixed economy
combines aspects of capitalist & socialist economies
christianity
religion based on life teachings of jesus
post industrial socitey
characterized by emphasis on service sectors
industrial society
characterized by dominance of secondary or manufacturing sectors
islam
religion based on submission of will to allah
buddhism
religious tradition that focuses primarily on reality of world suffering & ways one can be freed from suffering
Hinduism
acceptance of ancient traditions of India that are based on Vedic scriptures
Education
organized networks of socialization experiences that prepare individuals to act in society
social inequality
degree to which people have priveledged access to resources & positions within society
Foreign Corrupt Principles Act
forbids US companies to make or offer illegal payments or gifts to officials of foreign governments for the sake of getting or retaining business
International Business Ethics
unique ethical problems faced by managers conducting business operations across national boundaries
Corporate Social Responsibility
Idea that businesses have a responsibility to society beyond making profits
economic analysis
focuses on what is best decision for companies profits
Legal analysis
focuses only on meeting legal requirements of host & parent countries
ethical relativism
Theory that each society’s view of ethics must be considered legitimate & ethical
ethical universalism
theory that basic moral principles transcend cultural & national boundaries
Porters five forces model
technique that can help a multination firm understand the major forces at work in the industry & its degree of attractiveness
Counterparry
fending off cempetitors attack in one country by attacking in another, usually the competitors home country
competitor analysis
profile of competitors strategies & objectives
related diversification
mix of businesses with similar products and markets
unrelated diversification
a mix of businesses in any industry