Entry Modes
A company sells products to another country.
What is exporting?
Two companies cooperate but remain separate businesses.
What is an alliance?
Who manages a company’s foreign sales when it first starts exporting?
Who is the export manager?
In a matrix structure, an employee may have how many managers?
What are two managers?
The use of rules, systems, and controls in an organization.
What is formalization?
A company lets another business use its brand or technology for a fee.
What is licensing?
One company buys an existing company.
What is an acquisition?
All foreign business is managed through one separate division.
What is an international division?
In a matrix structure, the two managers may represent product and what?
What is a region?
The way work and tasks are divided between people.
What is specialization?
Local owners run a business using a company’s brand and business model.
What is franchising?
Two companies combine to become one company.
What is a merger?
A company organizes its global business by product groups.
What is a product structure?
In a transnational network, units are located in different parts of the world.
What are dispersed subunits?
Important decisions are made at the top of the organization.
What is centralization?
Two companies create and own a new business together.
What is a joint venture?
What is one possible benefit of a joint venture?
Companies can share resources, knowledge, and costs.
A company organizes its business by regions such as Europe, Asia, and America.
What is a regional structure?
In a transnational network, different units focus on particular activities.
What are specialized operations?
Decision-making is pushed down to lower levels of the organization.
What is decentralization?
A company builds a new operation abroad and owns it completely.
What is a wholly owned subsidiary?
What is the main difference between an alliance and a joint venture?
An alliance is when two companies cooperate but remain separate businesses. A joint venture is when two or more companies create and jointly own a new company.
A company organizes its business by functions such as production, marketing, and finance.
What is a functional structure?
Units share information and resources and depend on one another.
What are interdependent relationships?
Work is assigned to groups or departments that share responsibility. What type of specialization is this?
What is vertical specialization?