exam 2 3800

What are distinctive competencies, resources, and capabilities?

Distinctive competencies refer to the unique skills, technologies, or capabilities that a company possesses that give it a competitive advantage. These competencies are difficult for competitors to replicate, and they often result in higher profits or a larger market share for the company. Resources are the assets that a company has at its disposal, including physical assets like property and equipment, financial resources like cash and investments, and intangible assets like patents, trademarks, and human capital. Capabilities refer to the ability of a company to use its resources and competencies to achieve its strategic objectives. Capabilities may include things like supply chain management, research and development, or marketing expertise.

What are generic strategies? Name and explain the two generic strategies.

Generic strategies are broad categories of strategies that companies can use to gain a competitive advantage. The two main generic strategies are cost leadership and differentiation. Cost leadership is a strategy in which a company aims to become the lowest-cost producer in its industry, thereby gaining a competitive advantage through lower prices. Differentiation is a strategy in which a company aims to create a unique product or service that is valued by customers and difficult for competitors to replicate.

Suggestions to improve expatriate performance appraisals include...

using multiple evaluators with varying periods of evaluation.

Third-country nationals are....

workers who come from neither the home country nor the host country.

​A joint venture is

​a legal entity that is owned by other entities.

Escalation of commitment involves​

​continuation of the alliance longer than is necessary.

A functional organization structure is all of the following EXCEPT​

​is a description of an organization which functions properly in carrying out its mission.

​In the evolution of a firm's internationalization, most companies never reach a

​metanational state.

What is human resource management?

Human resource management (HRM) is the process of managing people within an organization to ensure that they contribute effectively and efficiently to the organization's goals. It involves recruiting, selecting, training, compensating, and managing employees, as well as developing policies and procedures to ensure fair and equitable treatment of all employees.

What are hybrid structures?

Hybrid structures combine elements of different structures to balance the advantages and disadvantages of each. Examples include the matrix structure and the network structure.

What are IHRM orientations and how do they relate to multinational strategies?

IHRM orientations refer to the different ways in which multinational companies approach their human resource management practices in foreign countries. The four main orientations are ethnocentric, polycentric, geocentric, and regiocentric. The choice of orientation depends on the company's overall multinational strategy and its goals for its foreign operations. For example, an ethnocentric orientation would prioritize the use of home country nationals in foreign operations, while a geocentric orientation would prioritize hiring the best candidate regardless of nationality.

What are the key steps in the implementation of a strategic alliance? Which step is considered the most important?

Key steps in implementing a strategic alliance include identifying potential partners, negotiating and agreeing on terms, developing an alliance agreement, establishing governance and decision-making processes, and implementing the alliance. The most important step is considered to be identifying the right partner.

What are KSFs and how do MNCs use them?

Key success factors (KSFs) are those factors that are critical to the success of a business in a particular industry. MNCs use KSFs to identify the strengths and weaknesses of their competitors and to develop strategies to compete effectively.

What are offensive and defensive competitive strategies?

Offensive strategies involve actions that a company takes to gain market share, increase profits, or otherwise improve its competitive position. Examples of offensive strategies include introducing new products, increasing marketing efforts, or acquiring competitors. Defensive strategies, on the other hand, involve actions that a company takes to protect its existing market position. Examples of defensive strategies include price reductions, legal action against competitors, or improving customer service to retain customers.

The international division differs from the export department in that

-The international division is usually larger and has greater responsibilities. .-The international division has more extensive staff with international expertise. -.Top management expects the staff of the international division to perform functions such as negotiating licensing and joint venture agreements, translating promotional material, or providing expertise on different national cultures and social institutions.

When should a MNC use an expatriate versus a home country national?

A MNC should use an expatriate when they require specific skills, knowledge, or expertise that are not available locally, or when they need to maintain control over a subsidiary's operations. Home country nationals are typically used for positions that do not require specialized knowledge or skills and can be performed by local employees.

What characteristics make a capability a competitive advantage?

A capability can be considered a competitive advantage if it meets certain criteria, such as being valuable, rare, difficult to imitate, and difficult to substitute.

What is a key difficulty in determining the initial ownership of a joint venture?

A key difficulty in determining the initial ownership of a joint venture is determining the relative contributions of each partner and how to value those contributions.

What should a multinational company seek in an alliance partner?

A multinational company should seek an alliance partner with complementary strengths, compatible culture and values, and a shared vision and objectives.

What is a value chain? What are primary and supportive activities?

A value chain is a tool used to analyze a company's operations and identify opportunities for improving efficiency and creating value for customers. It is made up of primary activities (such as inbound logistics, operations, and marketing) and supportive activities (such as procurement, technology development, and human resource management).

Why do alliances fail to meet expectations?

Alliances can fail to meet expectations due to factors such as incompatible cultures, lack of commitment or trust between partners, unclear objectives, and differences in management styles.

What does an Export Department do?

An Export Department is a specialized unit within a company that manages and coordinates the export of goods and services to foreign markets.

Why is it hard to appraise the performance of expatriates? What can be done to evaluate these challenges?

Appraising the performance of expatriates can be challenging due to the complex and dynamic nature of international assignments, including differences in cultural norms, language barriers, and the need to navigate new organizational and environmental contexts. Some strategies for evaluating expatriate performance include setting clear objectives and performance standards, providing ongoing feedback and coaching, and using multiple sources of feedback, such as self-assessments, supervisor evaluations, and feedback from colleagues and clients.

Business level strategies

Are concerned with how single business companies choose strategies.

How does structure typically change as a company first goes international?

As a company first goes international, its structure typically becomes more decentralized to accommodate local needs and preferences.

In the BCG Matrix, cash cows are

Businesses in a slow-growth industry where the company has a strong market share position.

What are the characteristics of the metanational structure?

Characteristics of the metanational structure include a high degree of autonomy and flexibility for subsidiaries, a central coordinating body that provides strategic direction, and a focus on building a global network of strategic partners.

What common factors are usually considered in expatriate compensation?

Common factors in expatriate compensation include base salary, benefits, bonuses, cost of living adjustments, hardship allowances, and tax equalization.

What is competitive advantage?

Competitive advantage is the unique advantage that a company has over its competitors, allowing it to outperform them in the marketplace. It can be achieved through factors such as lower costs, differentiation, or a focus on a specific market segment.

What is competitive scope? Explain the two approaches to competitive scope. Explain how competitive scope can be applied to generic strategies.

Competitive scope refers to the range of markets and customer segments that a company competes in. The two main approaches to competitive scope are a narrow or focused scope and a broad or wide scope. A narrow scope involves focusing on a specific market segment or niche, while a broad scope involves targeting a wider range of customers. The choice of competitive scope can be applied to generic strategies. For example, a cost leadership strategy might involve a narrow focus on producing low-cost products for a specific market segment, while a differentiation strategy might involve a broad focus on creating unique products that appeal to a wider range of customers.

The GE Portfolio matrix

Contains nine cells based on industry strength and business competitive position.

What do control systems do? What do coordination systems do?

Control systems are designed to ensure that organizational activities are aligned with strategic goals and objectives. They help to monitor performance and ensure that resources are being used efficiently and effectively. Coordination systems, on the other hand, are designed to facilitate communication and collaboration between different parts of the organization. They help to ensure that different departments or regions are working together towards common goals.

What is corporate strategy?

Corporate strategy refers to the overall plan that a company uses to achieve its objectives and create value for its shareholders. Corporate strategy may include decisions about which markets to enter or exit, which products or services to offer, and how to allocate resources to different business units or functions

The type of control system favored by the transnational is

Cultural

__________ strategies achieve higher profits by charging higher prices.

Differentiation

What is diversification? Explain the two types of diversification.

Diversification refers to the expansion of a firm's operations into new products, services, or markets. There are two types of diversification: 1.Related diversification: In this type of diversification, a firm enters a new business that is related to its existing business. For example, a company that produces cameras may also start producing camera accessories. 2.Unrelated diversification: In this type of diversification, a firm enters a new business that is not related to its existing business. For example, a company that produces cameras may start a new business in the real estate industry.

What type of design does each type of alliance require?

Each type of alliance requires a different design, with equity alliances requiring more complex governance structures and non-equity alliances requiring a focus on developing and managing the contractual agreement.

Third Country Nationals

Employees who are citizens of a country other than the country where the MNC is headquartered or the country where they are assigned to work.

Expatriates

Employees who are citizens of one country but are assigned to work in another country for a specific period of time, typically for a minimum of six months.

Host Country Nationals

Employees who are citizens of the country where the MNC has operations and who work in that country.

Inpatriates

Employees who are citizens of the country where the MNC is headquartered and who are assigned to work in a different country for a specific period of time.

Home Country Nationals

Employees who are citizens of the country where the multinational corporation (MNC) is headquartered and who work in their home country.

International Cadre (Globals):

Employees who are selected and trained for international assignments and who are expected to develop a global perspective and adaptability in their work.

Flexpatirates

Employees who have a flexible work arrangement that allows them to work remotely or from different locations for extended periods of time, typically six months or more.

Commuter Assignment Employees:

Employees who work in one country and commute across international borders to work in another country, typically on a weekly or monthly basis.

What strategic value is there in a MNC's use of expatriates?

Expatriates can play a strategic role in multinational corporations (MNCs) by transferring knowledge, skills, and experience across borders, facilitating communication and coordination between headquarters and subsidiaries, and promoting the company's global mindset and culture.

As companies increase the size of their international sales force and set up manufacturing operations in other countries, what do their export department often grow to become? How is this organizational form different from an export department? Do companies favor this form? Why or why not?

Export department often grows to become an international division or global marketing department, which is responsible for managing the company's international operations. This organizational form is different from an export department in that it has a broader scope of responsibilities, including not only exporting but also managing production, distribution, and marketing in foreign markets. Companies favor this form because it allows for better coordination of international operations and more efficient use of resources.

The structure adopted by companies in the early stage of internationalization is usually

Export department.

When exports become a significant percentage of company sales and a company wishes greater control over its export operations, managers often create a separate

Export department.

What are foreign subsidiaries?

Foreign subsidiaries are independent companies that are owned and controlled by a parent company located in a different country.

Subunits of a multinational company located in other countries than the parent company's headquarters is known as

Foreign subsidiaries.

Name and describe the five broad types of control systems.

Input Controls - These controls are designed to ensure that inputs into the organization are of the desired quality and quantity. Process Controls - These controls are designed to ensure that organizational processes are efficient and effective. Output Controls - These controls are designed to ensure that the outputs of the organization meet the desired standards. Behavior Controls - These controls are designed to regulate the behavior of employees and ensure that they act in accordance with ethical and legal standards. Cultural Controls - These controls are designed to reinforce the organizational culture and values.

What is international human resource management?

International human resource management (IHRM) is the process of managing people within a multinational corporation (MNC) to ensure that they contribute effectively and efficiently to the organization's goals across different countries and cultures. It involves recruiting, selecting, training, compensating, and managing employees who work in different countries, as well as developing policies and procedures that comply with the laws and cultural norms of different countries.

What can MNCs do to ensure female expatriate success?

MNCs can ensure female expatriate success by providing support systems such as mentorship, training, and networking opportunities. MNCs can also create policies and programs that address work-life balance and other gender-specific issues.

What is different about how MNCs conduct competitor analysis?

MNCs conduct competitor analysis differently than domestic firms due to the global nature of their operations. They must take into account factors such as cultural differences, regulatory environments, and exchange rate fluctuations that can impact their competitors' operations in different countries. Additionally, MNCs must also consider the impact of global trends and events on their competitors.

How should managers be trained for expatriate assignments?

Managers can be trained for expatriate assignments through a variety of methods, including language and cultural immersion programs, pre-departure training sessions, cross-cultural coaching, on-the-job training, and ongoing support and feedback during the assignment.

What can managers do to make cross-border alliances successful?

Managers can make cross-border alliances successful by investing in relationship-building activities, managing cultural differences, establishing clear communication channels, aligning goals and expectations, and adapting to changing circumstances.

What type of organizational forms do most MNCs have? Why?

Most MNCs have a combination of different organizational forms, including subsidiaries, joint ventures, and strategic alliances. This is because each form has its own advantages and disadvantages, and using a combination of forms allows companies to leverage the strengths of each form while minimizing the weaknesses.

The worldwide geographic structure is usually considered best to implement a _____ strategy.

Multidomestic or regional

What determines where multinational companies link in the value chain?

Multinational companies link in the value chain based on factors such as the availability and quality of resources, labor costs, infrastructure, and government policies.

Which type of control mechanisms do multinational companies use?

Multinational companies use a combination of these control mechanisms, depending on their specific needs and circumstances.

How do multinational corporations counter-parry offensive strategies?

Multinational corporations may counter-parry offensive strategies by using a variety of tactics, such as increasing their own marketing efforts, developing new products or services, or acquiring competitors themselves.

How do multinational structures evolve?

Multinational structures evolve over time in response to changes in the external environment, such as new markets, new competitors, and changes in regulations. They also evolve in response to changes in the internal environment, such as new products or services, changes in the organizational culture, or changes in the management team.

How do multinationals use employees for control and coordination purposes?

Multinationals use employees for control purposes by establishing clear lines of authority and responsibility, setting performance targets, and providing feedback on performance. They also use employees for coordination purposes by encouraging teamwork, establishing communication channels, and providing training and development opportunities.

How does national context affect strategic management?

National context can affect strategic management by influencing economic conditions, legal and regulatory environments, political factors, cultural differences, and infrastructure and technology. These factors can create opportunities and constraints for companies when developing and implementing their strategies.

What is organizational design (OD)?

Organizational design (OD) is the process of creating or changing the structure, processes, and systems of an organization to improve its efficiency, effectiveness, and adaptability.

Along what dimensions do organizations typically divide work? Which is the best option?

Organizations typically divide work along dimensions such as function, product, geography, or customer. The best option depends on the specific context and objectives of the organization.

What are some other approaches to expatriate compensation and how do they work?

Other approaches to expatriate compensation include local-plus packages, which provide a combination of host-country and home-country benefits, and global or regional compensation packages, which offer standardized compensation across multiple countries or regions.

What is outsourcing and how does it related to offshoring?

Outsourcing is the practice of contracting out a business function or process to another company, often in a different country, to save costs or gain access to specialized expertise. Offshoring is a specific type of outsourcing in which the contracted work is done in a different country.

Should partners plan for the end of an alliance from its beginning? Why or why not?

Partners should plan for the end of an alliance from its beginning in order to minimize the risk of conflict and ensure a smooth transition. This includes establishing clear termination clauses in the alliance agreement.

What are the four types or categories of risks for why expatriates fail? What is an example of each?

Personal: Health problems, stress, and burnout. Family: Problems with spouse or children adapting to the local environment, or lack of support from the employer. Organizational: Poor communication and lack of support from the employer, lack of clear objectives and expectations, and inadequate training and preparation. Cultural: Inability to adapt to the local culture, language barriers, and lack of cultural sensitivity and awareness.

Name and explain the 5 forces in Porter's model of industry attractiveness.

Porter's model of industry attractiveness identifies five forces that determine the profitability of an industry: Threat of new entrants: The degree to which new competitors can enter the market. Bargaining power of suppliers: The degree to which suppliers can influence the price and quality of inputs. Bargaining power of buyers: The degree to which buyers can influence the price and quality of products or services. Threat of substitutes: The degree to which alternative products or services can meet the same needs as the industry's products or services. Rivalry among existing competitors: The degree of competition among existing firms in the industry.

What are some of the potential benefits of a strategic alliance?

Potential benefits of a strategic alliance include access to new markets and technologies, sharing of knowledge and expertise, cost savings through shared resources, and increased bargaining power.

Capabilities

Represent the ability of companies to assemble and coordinate their resources in ways that lead to lower costs of differentiated outputs.

Which management structure is popular in developing countries?

Rotating

Why is SWOT Analysis more complex for MNCs?

SWOT analysis can be more complex for MNCs because they must consider factors such as multiple markets, cultural differences, and diverse business environments.

What are the key success factors for expatriate success?

Some of the key success factors for expatriate success include cross-cultural competencies, language skills, technical expertise, adaptability, social skills, emotional stability, family support, and adequate training and preparation.

What are some real problems that tend to impact female managers more than males?

Some real problems that tend to impact female managers more than males include gender bias and discrimination, lack of networking opportunities, and work-life balance issues. Female managers may also face cultural barriers and different expectations in some countries, which can affect their ability to lead effectively.

Does the termination of an alliance indicate failure? Why or why not?

The termination of an alliance does not necessarily indicate failure, as the alliance may have achieved its intended objectives or served as a learning experience for the partners. However, premature or unplanned termination can be a sign of failure.

Should strategy determine organizational structure or should organizational structure determine strategy?

Strategy and organizational structure are interdependent and should be designed in conjunction with each other. The strategy should inform the organizational structure, while the organizational structure should support the implementation of the strategy.

What is strategy formulation?

Strategy formulation is the process of developing and implementing strategies to achieve the goals and objectives of an organization. It involves assessing the current situation, identifying opportunities and threats, developing strategies to capitalize on opportunities and mitigate threats, and implementing the strategies.

What is strategy?

Strategy refers to the plan of action that a company uses to achieve its goals and objectives. It involves making choices about how to allocate resources, where to compete, and how to compete.

Name and describe the six horizontal coordination systems.

Task Forces - A temporary team established to work on a specific project or problem. Liaison Roles - A designated individual or team responsible for facilitating communication and coordination between departments or regions. Integrating Roles - A designated individual or team responsible for integrating the activities of different departments or regions. Cross-functional Teams - A team composed of individuals from different departments or regions working together to achieve a common goal. Matrix Structures - A structure that combines both geographic and product divisions. Communities of Practice - Informal groups of individuals with shared interests or expertise who collaborate and share knowledge to achieve common goals.

Explain how to use the Boston Consulting Group's (BCG) the growth-share matrix?

The BCG growth-share matrix is a tool used to analyze a company's portfolio of businesses based on their market growth rate and relative market share. The matrix consists of four quadrants: stars, cash cows, question marks, and dogs. Stars are high-growth, high-share businesses and require significant investment to maintain their position. Cash cows are high-share, low-growth businesses that generate more cash than is needed and can be used to support other businesses in the portfolio. Question marks are low-share, high-growth businesses that require investment to gain market share and become stars or be divested. Dogs are low-share, low-growth businesses that may be divested. The matrix helps companies identify where to allocate resources and invest in their businesses based on their growth potential and relative market share.

Describe the GE portfolio matrix.

The GE portfolio matrix is a strategic tool used to evaluate business units or products within a company. It assesses the attractiveness of the industry and the business unit's competitive position within that industry, and categorizes them into different quadrants: Invest, Grow, Harvest, and Divest. The matrix helps companies identify where to allocate resources and how to manage their portfolio of businesses.

What is the balance-sheet approach to expatriate compensation? How does it work?

The balance-sheet approach to expatriate compensation seeks to ensure that the expatriate's standard of living remains comparable to that in their home country. It typically involves calculating the difference between the cost of living in the home country and the host country, and providing compensation adjustments to cover any difference in the cost of living, taxes, and other expenses.

What is the basic form of the transnational network structure? Explain this form.

The basic form of the transnational network structure is a loosely connected network of independent subsidiaries and joint ventures, each with its own management team and decision-making authority. This structure is characterized by a high degree of autonomy and flexibility, but also a lack of centralized control.

How do multinational strategies map to organizational structures?

The choice of organizational structure for a multinational company depends on the specific strategy being pursued. A localization strategy favors a geographic structure, a global standardization strategy favors a product structure, a transnational strategy favors a matrix structure, an international strategy favors a centralized structure, and a regionalization strategy favors a hybrid structure. The organizational structure needs to be aligned with the requirements of the strategy in terms of coordination, communication, and decision-making.

What is the expatriate glass ceiling? What are the two myths underlying it? How can female managers deal with this problem?

The expatriate glass ceiling refers to the underrepresentation of women in international assignments, particularly at senior levels. Two myths underlying this problem are that women are less interested or less capable in international assignments, and that they are less willing to relocate due to family obligations. To overcome this problem, female managers can seek out mentors and sponsors, build their cross-cultural competencies, and challenge gender stereotypes.

Name and explain the five typical management control structures used for alliances.

The five typical management control structures used for alliances are: Joint venture: a new entity is created that is jointly owned and controlled by the partners. Lead firm structure: one partner takes the lead in managing the alliance. Shared governance structure: both partners have equal say in decision-making. Contractual control structure: the partners use contracts to govern the alliance. Informal control structure: the partners rely on personal relationships and trust to manage the alliance.

Describe the functional structure. What are its advantages and disadvantages? Under what conditions does it work best?

The functional structure groups employees based on their expertise or function, such as marketing, finance, or operations. Its advantages include specialization, economies of scale, and clear lines of authority. Its disadvantages include silos, slow decision-making, and difficulty in coordinating across functions. It works best in stable and simple environments.

What determines the management structure of an alliance?

The management structure of an alliance is determined by factors such as the level of integration required, the partners' respective strengths and weaknesses, the degree of risk involved, and the strategic objectives of the alliance.

The most balanced structural solution to the national responsiveness versus global efficiency dilemma is

The matrix structure.

What is the metanational structure? How is it similar to and different from the transnational network?

The metanational structure is similar to the transnational network in that it is a loosely connected network of independent subsidiaries and joint ventures. However, in the metanational structure, there is a central coordinating body that oversees the activities of the network and provides strategic direction. This structure is designed to balance the benefits of global coordination with the benefits of local responsiveness.

Name and explain the most common tool for company-situation analysis.

The most common tool for company-situation analysis is SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning method that helps a company to identify its internal strengths and weaknesses as well as external opportunities and threats in the market or industry. Strengths and weaknesses refer to the internal factors of a company, such as its resources, capabilities, and organizational culture. Opportunities and threats refer to the external factors, such as market trends, competitors, and regulatory changes. SWOT analysis helps companies to make informed decisions about their future strategies by aligning their strengths and opportunities, addressing their weaknesses, and mitigating potential threats.

What is the primary challenge in measuring indirect strategic benefits from alliances?

The primary challenge in measuring indirect strategic benefits from alliances is determining how to attribute specific benefits to the alliance as opposed to other factors.

Explain the product structure, the geographic structure, and the customer-focused structure. What are the advantages and disadvantages of these structures?

The product structure groups employees based on the products or services they produce, while the geographic structure groups them based on their location. The customer-focused structure groups employees based on their customer segment or market. The advantages and disadvantages of these structures depend on the specific context.

What is the repatriation problem and how can MNCs solve or reduce it?

The repatriation problem refers to the challenges that expatriates may face upon returning to their home country, including readjustment to the culture, reverse culture shock, and career dislocation. MNCs can reduce this problem by providing adequate support and preparation for the repatriation process, such as career planning, networking opportunities, and cultural transition programs.

Why is it important to select expatriate managers well?

The selection of expatriate managers is crucial for the success of international assignments. Poor selection can result in assignment failure, high turnover, and damage to the company's reputation. Effective selection involves assessing the candidate's cross-cultural competencies, personality traits, language skills, and family situation.

What types of subunits exist in organizations? How are they different?

The subunits that exist in organizations can be divided into functional, divisional, matrix, and network structures. They are different in terms of their focus, scope, and level of autonomy.

Name and explain the three main types of strategic alliances.

The three main types of strategic alliances are equity alliances, non-equity alliances, and global strategic alliances. Equity alliances involve the exchange of ownership stakes between partners, while non-equity alliances involve contractual agreements without an exchange of ownership. Global strategic alliances involve multiple partners and a broad scope of activities.

What are the two basic questions of organizational design?

The two basic questions of organizational design are how to divide work among individuals and subunits, and how to coordinate and control these subunits.

Name and explain the two key issues in managing an alliance organization.

The two key issues in managing an alliance organization are developing trust and commitment between partners and effectively managing communication and decision-making processes.

What are the two major problems associated with using expatriates?

The two major problems associated with using expatriates are culture shock and the inability to adapt to the local environment. Culture shock can lead to poor job performance, health problems, and high turnover rates. Inability to adapt to the local environment can result in poor job performance, difficulty in building relationships with local employees, and an inability to meet business objectives.

Name and explain the two types of commitment in alliances.

The two types of commitment in alliances are affective commitment, which refers to an emotional attachment to the alliance partner, and calculative commitment, which is based on a cost-benefit analysis of the alliance.

Name and explain the two types of trust in alliances.

The two types of trust in alliances are cognitive trust, which is based on rational assessment of the partner's reliability and competence, and affective trust, which is based on emotional bonds and interpersonal relationships.

How does the US compare to Europe and Japan in terms of the success of its expatriate managers?

There is no definitive answer to this question, as success rates can vary depending on the industry, the nature of the job, and other factors. However, research suggests that expatriate managers from the US tend to have higher success rates in Europe than in Japan, due in part to cultural similarities between Europe and the US.

The best method of assessing strategic alliance performance is

There is no one best method.

What factors need to be considered to build and sustain commitment and trust in international strategic alliances?

To build and sustain commitment and trust in international strategic alliances, factors such as cultural differences, language barriers, power imbalances, and communication channels must be considered. Partners should also establish clear goals, roles, and responsibilities and maintain open lines of communication.

The type of subsidiary that supports a multinational firm strategy based on location advantages is a/an

Transnational subsidiary.

Why is trust important in alliances?

Trust is important in alliances because it enables partners to overcome uncertainty and the risks associated with collaboration. It also helps to build a foundation of mutual understanding and respect.

Name and explain the different types of subsidiaries used by multinational companies. Which type is most commonly used?

Types of Subsidiaries: a) Full Subsidiary: A company that is fully owned by another company is called a full subsidiary. The parent company owns 100% of the subsidiary's shares and has complete control over its operations. b) Partial Subsidiary: A company that is partially owned by another company is called a partial subsidiary. The parent company owns less than 100% of the subsidiary's shares, but still has a controlling interest. c) Holding Company: A holding company is a type of subsidiary that only holds assets, such as stocks or other investments, and does not engage in operational activities. d) Joint Venture: A joint venture is a partnership between two or more companies to pursue a specific business opportunity. Each partner contributes resources and shares in the profits and losses. e) Strategic Alliance: A strategic alliance is a cooperative agreement between two or more companies to share resources or capabilities to achieve a specific objective. The most commonly used type of subsidiary is a full subsidiary.

Trust in strategic alliance relationships

Usually builds in cycles.

Explain the worldwide geographic structure. What multinational strategies favor this structure?

Worldwide Geographic Structure: This structure divides the company's operations based on geographic regions. Each region has its own management team and is responsible for managing all of the company's activities within that region. Multinational strategies that favor this structure include localization and regionalization strategies.

Explain the worldwide matrix structure. How is it different from a hybrid structure? When does this matrix structure work well? What is the key challenge with this structure?

Worldwide Matrix Structure: This structure combines elements of both the geographic and product structures. It divides the company's operations into both geographic regions and product lines, with each region and product line having its own management team. This structure works well when there are multiple products and multiple regions, and when there is a need for both global coordination and local responsiveness. The key challenge with this structure is that it can lead to complexity and confusion due to the overlapping responsibilities of different teams.

Explain the worldwide product structure. What multinational strategies favor this structure? What is the risk of using this structure?

Worldwide Product Structure: This structure divides the company's operations based on product lines. Each product line has its own management team and is responsible for managing all of the company's activities related to that product line. Multinational strategies that favor this structure include global standardization and product specialization strategies. The risk of using this structure is that it can lead to a lack of coordination and communication between product lines, which can result in inefficiencies and missed opportunities.

The six basic functions of HRM are:

a) Recruitment and selection: The process of identifying, attracting, and hiring the best qualified candidates for available job positions. b) Training and development: The process of providing employees with the knowledge, skills, and abilities required to perform their job effectively. c) Performance management: The process of setting performance standards, evaluating employee performance, and providing feedback to employees. d) Compensation and benefits: The process of determining and providing employee salaries, bonuses, and other benefits such as health insurance, retirement plans, and paid time off. e) Employee relations: The process of managing the relationship between the organization and its employees, including conflict resolution, communication, and employee engagement. f) Legal compliance: The process of ensuring that the organization complies with all applicable labor laws and regulations, including anti-discrimination laws, wage and hour laws, and workplace safety laws.

Evidence on training for international assignments suggests...

cross-cultural training reduces expatriate failure rates.

Inpatriates are...

employees from foreign country who work in the country where the parent company is located.

Home country nationals are...

expatriate employees who come from the parent's home country.

Extra money paid to expatriates for particularly difficult posting due to issues such as high risk or poor living conditions is known as...

hardship allowance.

The two aspects to consider when evaluating the possibility of hiring expatriates are the high cost and...

high failure rate.

Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations is known as (the)...

repatriation problem.

Companies with ethnocentric HRM orientations...

select home country nationals for key positions.

The main objective of the balance sheet approach to international compensation is...

to match home and host county purchasing power.