Internationalization Strategy
Mode of Entry
HRM
A little bit of this and a little bit of that
Grab Bag (from Lectures)
In this case...
100
What are the two pressures firms in a global market place face
cost reduction locally responsive
100
When firms are selecting a market entry mode (or strategy), which competing interests do they have in mind?
Degree of control and resource commitment
100
DAILY DOUBLE
Which staffing policy is best suited for the generic international strategy
ethnocentric
100
Give ONE example of a first-mover advantage
e.g. ability to create switching costs that tie customers into one's products or services
100
This company controls many stages of the eyewear industry
Luxottica
100
Explain why it was not beneficial for pharma companies to allow the COVID-19 patents to be released.
Monopolizing vaccine supply through IP rights encourages pharmaceutical companies to invest in
research and development by ensuring returns on investmen
200
Firms that pursue a(n) _____ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.
global standardization
200
Name two conditions that firms seek when selecting where to enter
Stable markets
Low competition
Profit potential
Suitability
Unmet market needs
200
Explain polycentric staffing using the example of the US MNC setting up a German subsidiary
German managers hired to fill management positions in Germany
200
The notion that international managers need to analyze the world as a global market while simultaneously understanding national differences refers to the
Transnational mindeset
200
Our guest speakers worked in two big multinationals. Do you recall which are those?
Hasbro and IBM
200
Why did Target fail to internationalize and what was the country selected?
Aggressive entry, supply chain issues, etc. Canada
300
In what kind of industries does a localization strategy make sense?
A localization strategy makes sense in industries that serve markets that have substantial differences across nations in terms of tastes and preferences of consumers with less cost pressures.
300
Jupiter Systems is a high-tech firm looking to set up operations in a foreign country. The firm's core competency is in technological know-how. Which of the modes of entry/ownership structures would be most favorable to the firm if it wants to keep the tightest control over its technology?
Subsidiary
300
Which staffing policy is best suited for firms pursuing the transnational stragey
geocentric
300
The following organizational chart depicts which strategy?
Localization
300
Name and define the elements of the framework we use in IB to assess the similarities and differences between home and host countries
Distance is the main cost and risk of expansion.
CAGE is an acronym for different types of distance:
•Cultural.
•Administrative and political.
•Geographic.
•Economic.
Guides multinational enterprise decisions on which countries to enter.
300
DAILY DOUBLE
What does Lemon Tree HR inclusion program stands for?
Hiring large numbers of people with physical/mental disabilities and people from other socially marginalized groups and putting them to work throughout various areas of hotel operation
400
For a firm starting from the localization strategy, the natural strategic transition is to which strategy?
Transnational strategy
400
What is the number one reason why a high-tech firm should avoid selecting licensing as a mode of entry?
risk of losing control over technology
400
What is a major reason for expatriate failure across US, Japanese and European multinational enterprises?
inability of expatriate's spouse to adapt to foreign culture; inability to cope with larger responsibilities
400
Name the mode of entry that (1) requires the least investment and yields the least control and (2) requires the most investment and yields the most control for the headquarters
400
This industry segment has no concern in adapting their products to local markets and face no pressure to reduce costs of production. We discussed many different brands, can you cite two?
Luxury Brands; Harley Davidson, etc.
400
Why should Lemon Tree internationalize to the US?
Depends on answer
500
DAILY DOUBLE
Use the four generic strategies model to explain the best strategy for LEMON TREE HOTELS to internationalize to the US
international or localization.
some would argue that hotels need certain levels of localization, specially when it comes to marketing. so i can accept localization as well.
500
Small-scale entry into a foreign market makes it difficult to build market share because of this primary reason
is associated with a lack of commitment demonstrated by the foreign (incoming) firm.
500
Explain the most common approach to expatriate pay
Balance sheet approach: Most common approach to expatriate pay
Equalizes purchasing power across countries so employees can have same standard of living as they do at home
500
Cite the stages of cross-cultural adjustment
500
This is my favorite fast-food chain. Give the name of the chain and cite one example of local adaptation viewed in class.
McDonalds - germany (mc brezel), brazil (pao de queijo/mc cafe/guarana), thailand (temples, eggs), japan (shrimp burger)
500
What global response did the WHO take to combat the COVID-19 pandemic? And was it effective or not?
C-TAP, an initiative of the WHO sought to share knowledge, data, and IP to manufacture patented medicines for everyone through mass adoption of the program, which was supported by 39 countries and several UN agencies and NGOs.