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What is a functional structure?
This organizational structure groups employees based on specialized functions such as marketing, finance, and operations.
What is centralization?
This factor refers to how much decision-making authority is concentrated at headquarters.
What is price skimming?
This pricing strategy sets a high initial price when introducing a new product.
What is purchasing power?
This economic factor refers to the average income level of consumers in a country.
What is the difference between a merger and an acquisition?
A merger occurs when two companies combine to form a new single organization, usually with mutual agreement between both firms.
An acquisition occurs when one company purchases and takes control of another company.
What is a geographical structure?
This structure divides a multinational company into units based on geographic regions such as Europe, Asia, and North America.
What challenge occurs in a matrix sturucture?
This organizational challenge occurs when employees report to two different managers simultaneously in a multinational firm.
What is penetration pricing?
This strategy involves setting a low initial price to quickly gain market share.
What are tariffs?
Taxes imposed by governments on imported goods are called this.
What are the main goal of using alliances and acquisition
use alliances to learn and move fast, acquisitions to gain control and assets,
What is a matrix structure?
This structure combines functional and product-based structures, allowing employees to report to multiple managers.
What is local responsiveness?
When a multinational company adapts its products and management practices to local markets, it is pursuing this strategy.
What is market-based pricing?
This strategy sets prices similar to competitors to maintain market stability.
What is corporate restructuring?
This corporate strategy involves reorganizing company operations, assets, or structures to improve efficiency and competitiveness.
Corporate strategy answers three big questions. What are they?
(1) where to play, (2) how to win, (3) how to run the system.
What is a divisional structure?
This organizational structure is often used by multinational companies to allow subsidiaries significant autonomy in local markets.
What is a transnational strategy?
Balancing global efficiency and local responsiveness is the main challenge in designing this type of strategy.
What is premium pricing?
This pricing strategy targets customers willing to pay higher prices for premium products.
What is corporate social responsibility (CSR)?
This concept refers to a company’s responsibility to operate ethically while contributing to economic development and improving the quality of life of employees and society.
What is knowledge leakage?
This major risk in strategic alliances occurs when one partner gains access to valuable knowledge or technology and later becomes a competitor.
What is a network organizational structure?
This structure relies heavily on partnerships and outsourcing rather than traditional hierarchical control.
What are cross-functional teams?
This coordination mechanism allows companies to integrate activities across different departments and regions.
What is dynamic pricing?
This strategy adjusts prices based on demand conditions, competition, and customer willingness to pay.
What is price escalation?
When companies adjust prices to compensate for differences in distribution costs across markets, they use this pricing concept.
What is organizational or cultural compatibility?
In strategic alliances, this factor refers to the compatibility of organizational values, management styles, and business practices between partner firms.