FINAL EXAM STUDY GUIDE -- Ch 14 Strategy and Organization -- Cavanaugh Ch11.docx - FINAL EXAMINATION REVIEW OF CHAPTER 14 STRATEGY AND ORGANIZATION IN

FINAL EXAM STUDY GUIDE -- Ch 14 Strategy and Organization -- Cavanaugh Ch11.docx

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F INAL E XAMINATION R EVIEW OF C HAPTER 14 S TRATEGY AND O RGANIZATION IN THE INTERNATIONAL FIRM F ROM C HAPTER 11 OF P ROFESSORS C AVANAUGH , KNIGHT AND RIESENBERGER I NTERNATIONAL B USINESS : T HE N EW REALITIES, 4 TH E D (2018) P REPARED F OR S TUDENTS OF IBUS 330 -- F ALL S EMESTER 2019 LEARNING OBJECTIVES 11.1 Describe strategy in international business. 11.2 Understand building the global firm. 11.3 Describe the integration-responsiveness framework. 11.4 Learn to identify strategies based on the integration-responsiveness framework. 11.5 Understand organizational structure in international business. 11.6 Understand foreign market entry strategies. I again recommend reviewing the interactive lectures in Mylab since they are based on the learning objectives above. To undertake an international venture, managers have to think, analyze and plan. This involves considering what industry the firm is in and what resources the firm has – both of which are huge determinants of how the firm will operate and compete in an international venture. Strategy in international business. The firm that aspires to become globally competitive must simultaneously seek three key strategic objectives—efficiency, flexibility, and learning. Building the global firm: Managers who exhibit visionary leadership possess an international mind-set, cosmopolitan values, and a globally strategic vision. The integration-responsiveness framework: The integration-responsiveness (IR) framework describes how internationalizing firms simultaneously seek global integration and local responsiveness. The IR framework presents four alternative strategies: home replication strategy , multidomestic strategy, global strategy and transnational strategy. Organizational structure in international business: Organizational structure determines where key decisions are made, the relationship between headquarters and subsidiaries, and the nature of international staffing. Six organizational structures are discussed: the export department, the international division structure , the geographic area structure, the product structure , the functional structure and the global matrix structure. Foreign market entry strategies: Market entry strategies consist of exporting , sourcing , and foreign direct investment as well as licensing , franchising , and nonequity alliances . Each strategy has advantages and disadvantages. To select a strategy, managers must consider the firm’s resources and capabilities, conditions in the target country, risks inherent in each venture, competition from existing and potential rivals, and the characteristics of the product or service to be offered in the market. Global sourcing (importing) is the procurement of products and services from worldwide sources for use at home.
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The Opening Vignette: IKEA’s STRATEGIES FOR GLOBAL SUCCESS Key message: This vignette reveals that IKEA successfully combines global operational efficiencies in production and training with local responsiveness by delegating autonomy and decision-making regarding product markets to local managers.
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