Chapter 11 - organization The mission statement should...

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Self-Graded Questions for Chapter 11: Define these terms and give examples where possible: 1. International Strategy - Trying to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies 2. Multinational Strategy – Firms use their entire VACs in the countries where they do business 3. Global Strategy – Firms have one big VAC which they feed with the benefits of comparative advantage 4. Transnational Strategy – blend of both global and multinational strategies 05. Financial Performance Objectives – aims to improve the firm’s financial performance 6. Strategic Performance Objectives – aims to improve the firm’s strategic performance in areas such as market share, quality, technological advances, cost etc. 7. Direction Setting Mission Statements – a short written statement of the purpose of a company or
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Unformatted text preview: organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. 8. Experience Curve Effects – the decrease in unit cost as volume of production rises. This happens as firms become more efficient 9. Strategy and Environmental “Fit” – strategies must fit the environment in which it is putting into play. If these things don’t “fit” a firm cannot be competitive 10. How does the standardization of production and convergence of markets fit with a globalization strategy? When markets converge on the same needs they rationalize their VACs thus spreading fixed cost over many standardized units of production....
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This note was uploaded on 10/19/2011 for the course IBUS 330 taught by Professor Nicholson during the Fall '07 term at S.F. State.

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