Market Entry Strategies
What is exporting?
Selling goods or services produced in one country to customers in another.
What is a high-context culture?
A culture where communication relies heavily on implicit messages and context (e.g., Japan, China)
Define transformational leadership.
A leadership style that inspires and motivates employees to innovate and create change.
What is currency fluctuation risk?
The risk that changes in currency exchange rates will impact profits.
What is one common challenge companies face when expanding internationally?
Adapting to cultural differences.
What is licensing?
Allowing a foreign company to use intellectual property for a fee.
Name a cultural barrier in global marketing.
Language differences.
What is situational leadership?
A leadership approach that adapts to the specific needs of the situation or team.
Name a political risk in global business.
Example: Government instability
Why is navigating legal and regulatory compliance challenging in global markets?
Laws and regulations vary significantly between countries and can be complex to understand and implement.
Explain the difference between franchising and a joint venture.
Franchising: Licensing a business model to local operators.
Joint Venture: A partnership where two companies create a new entity to share resources and risks.
Why is understanding power distance important in global leadership?
It helps leaders adapt to hierarchical or egalitarian preferences in decision-making.
Which leadership style fits an egalitarian culture?
Participative or democratic leadership.
How can companies mitigate supply chain disruptions?
Diversify suppliers and use technology for real-time tracking.
What is a common supply chain challenge in global business?
Delays caused by customs regulations or logistical inefficiencies.
Give an example of a successful joint venture.
Example: Sony and Ericsson (Sony Ericsson Mobile Communications).
Name a common business custom in Japan.
Exchanging business cards (meishi) with respect.
Why is emotional intelligence crucial in global teams?
It fosters understanding, communication, and collaboration across cultural boundaries.
What is the importance of a risk matrix?
It helps identify, assess, and prioritize risks to develop effective mitigation strategies.
How can companies address resistance to change during global expansion?
By providing clear communication, training, and involving employees in the transition process.
List 3 advantages of direct investment in a global market.
1. Full control over operations.
2. Better understanding of the local market.
3. Potential for long-term profitability.
How can companies adapt to collectivist cultures?
Emphasize teamwork, group achievements, and long-term relationships.
Name one global company that emphasizes servant leadership.
Example: Starbucks.
Describe how cultural misunderstandings can pose a risk.
Miscommunication or offensive actions can harm relationships and brand reputation.
What is the impact of economic instability on global business operations?
It can lead to currency fluctuations, reduced consumer spending, and difficulty accessing financing.