Entry Strategies
What is the oldest and least risky method for a company to enter foreign markets?
What is Exporting?
This structure groups all international activities into one division once global expansion begins
What is an international division structure?
The degree to which rules, procedures, and systems guide decisions
What is formalization?
What is a merger?
A formal combination of two previously independent firms to form one new organization
What is the study of morality and standards of conduct?
Ethics
A type of partnership where two or more firms share ownership and control of a business
What is a joint venture?
A global structure that focuses on managing business by product rather than geography or function.
What is a product structure?
This characteristic involves dividing work into specific, well-defined tasks
What is specialization?
What is an international alliance?
A partnership that gives both parties access to new resources, technology, or markets without merging ownership
What are some sources of culture?
Family, Educational Institutions, and Religion
This entry method allows one firm to use another’s intellectual property in exchange for payment.
What is licensing?
This model focuses on long-term relationships and mutual support
What is keirestu?
When authority and decision-making stay primarily at top management levels
What is centralization?
What is an area structure?
An organizational structure focusing on geographic areas rather than products or functions
what is the belief that one's own culture is superior to others, leading to the use of one's own cultural standards to judge other groups?
A McDonald’s in Spain operating under its brand and system, but owned by a local businessperson, is an example of this.
What is franchising?
Which structure involves dual-system reporting?
What is the matrix structure?
When lower-level personnel are empowered to make decisions
What is decentralization?
What is a wholly owned subsidiary?
The international entry method that gives a firm total control and highest profits but requires the most capital and risk
At what age did Professor Omar win National Magic Champion
Age 9
This type of joint venture involves no equity investment, just a service agreement between corporations
What is a nonequity joint venture?
A structure with dispersed subunits, localized operations, and interdependent relationships.
What is a transnational network structure?
What is one thing a company must consider when choosing the right structure?
What is evaluating the environment?
What is balancing trade offs?
What is assessing strategy?
What is enabling flexibility?
What is analyzing capabilities?
What does a low formalization structure look like?
Flexible guidelines, Discretionary decision-making, Adaptive responses
What does it mean when someone has low uncertainty avoidance?
More willing to take risks, fewer rules, and more trust