Chapter 2 - StratMan (70-82)
——— are drawing countries, cultures, and organizations worldwide closer together.
Advancements in telecommunications
—- refer to "hourly employees," whereas many Japanese companies still refer to "lifetime employees."
Americans
—- tend to use first names instantly in business dealings with foreigners, but foreigners find this presumptuous.
Americans
A weakness of some U.S. firms in competing with Pacific Rim firms is a lack of understanding of —-, including how Asians think and behave.
Asian cultures
Foreign operations could be seized by nationalistic factions. A/D
D
——— are market leaders in labor-intensive industries, Brazil offers abundant natural resources and rapidly developing markets, and Germany offers skilled labor and technology.
East Asian countries
A 90-minute lunch break plus 20-minute morning and afternoon breaks are common in — firms.
European
In —-, first names are used only among family members and intimate friends; even longtime business associates and coworkers shy away from the use of first names.
Japan
——- refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.
Protectionism
The —— is becoming much less American.
U.S. economy
satisfactory growth for many firms can only be achieved by —— on demand ——- the United States.
capitalizing - outside
Geographic distance, cultural and national differences, and variations in business practices often make ———- between domestic headquarters and overseas operations difficult.
communication
Organizations that conduct business operations across national borders are called ——/
international firms or multinational corporations.
A world economy and ——- are emerging.
monetary system
The need to amortize massive ——- investments over many markets is a major reason why the aircraft manufacturing industry became global.
research and development (R&D)
The —-, ——, ——, ——, ——, ——, ——, ——, —-, and —— that face a multinational corporation are almost limitless, and the number and complexity of these factors increase dramatically with the number of products produced and the number of geographic areas served.
social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats
The ———// is conceptually the same for multinational firms as for purely domestic firms; however, the process is more complex for international firms as a result of more variables and relationships.
strategic-management process
To see and appreciate the world from the perspective of others has become a matter of ———- .
survival for businesses
——— are paternalistic, providing workers with more than a paycheck, but in return they expect allegiance. - Weekly food baskets, free meals, free bus service, and free day care are often part of compensation. - The ideal working condition for a —— is the family model, with people all working together, doing their share, according to their designated roles. ——- do not expect or desire a work environment in which self-expression and initiative are encouraged.
1. Mexican employers 2. Mexican worker 3. Mexican workers
A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally. Enhanced prestige can translate into improved negotiating power among creditors, suppliers, distributors, and other important groups. A/D
A
———, which also has above-average levels of union density, unemployment and other social benefits are normally paid out through the union.
Belgium
Weaknesses of competitors in foreign lands are often overestimated, and strengths are often underestimated. Keeping informed about the number and nature of competitors is more difficult when doing business internationally. A/D
D
The two exceptions appear to be —- and ——, where union membership is slowly growing.
Ireland and Italy
—- managers in Japan see making a sale as the beginning, not the end, of the selling process. This is an important distinction.
Marketing
The ———, for example, monitors business practices in many areas.
U.S. Foreign Corrupt Practices Act
Firms can also offset some risks of doing business internationally by obtaining insurance from the ———-.
U.S. government's Overseas Private Investment Corporation (OPIC).
To be successful in world markets, ——— must obtain a better knowledge of historical, cultural, and religious forces that motivate and drive people in other countries.
US Managers
Managers from the ——- place greater emphasis on short-term results than do foreign managers.
United States
The ———- no longer can define the limits of our imaginations.
boundaries of countries
Viewing the Japanese communication style as a—— for all Asian cultures is a —- that must be avoided.
prototype - stereotype
Millions of small businesses do business everyday outside their home country by interacting with customers though —-, —— and ——-.
websites, smartphones, and social media
——- an authoritarian society in terms of schools, churches, businesses, and families. - Employers seek workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent. ——— tend to be activity-oriented rather than problem solvers. When visitors walk into a ——- business, they are impressed by the cordial, friendly atmosphere. It is almost always true because —— desire harmony rather than conflict; desire for harmony is part of the social fabric in worker-manager relations. There is a much lower tolerance for adversarial relations or friction at work in —— as compared to that in the United States.
1. Mexico 2. Mexican workers 3. Mexican 4. Mexicans 5. Mexico
American business embodies ——-, achievement, competition, curiosity, pragmatism, informality, spontaneity, and doing more than expected on the job Mexican businesses stress ———, continuity, cooperation, belongingness, formal- ity, and doing exactly what is told.
1. individualism 2. collectivism
Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. A/D
A
Economies of scale can be achieved from operation in global rather than solely domestic markets. Larger-scale production and better efficiencies allow higher sales volumes and lower-price offerings. A/D
A
Firms can gain new customers for their products. A/D
A
Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. A/D
A
Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials or cheap labor. A/D
A
Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment. A/D
A
Joint ventures can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. A/D
A
"The system drives you; you cannot fight the system or culture," says —-, president of Phillips Petroleum in Norway.
Bill Parker
In Japan, "If a nail sticks out, you hit it into the wall," says —— , an international consultant for Wilson Learning.
Brad Lashbrook
—- and ——- generally have below-average levels of union membership.
Central and Eastern Europe nations
In —-, business behavior revolves around guanxi, or personal relations.
China
—— has more than 1.3 billion residents and a dramatically growing middle class anxious to buy goods and services.
China
Shifts in the nature and location of production systems, especially to —- and ——, are reducing the response time to changing market conditions.
China and India
——- may be the most important word in strategic management.
Communication
All of Africa, and places such as —— and ——, are becoming more desirable for business every day.
Cuba and Iran
Dealing with two or more monetary systems can complicate international business operations. A/D
D
Firms confront different and often little-understood social, cultural, demographic, environmental, political, governmental, legal, technological, economic, and competitive forces when doing business internationally. These forces can make communication difficult in the firm. A/D
D
Gaining an understanding of regional organizations such as the European Economic Community, the Latin American Free Trade Area, the International Bank for Reconstruction and Development, and the International Finance Corporation is difficult but is often required in doing business internationally. A/D
D
Language, culture, and value systems differ among countries, which can create barriers to communication and problems managing people. A/D
D
The four Nordic countries of —-, —-, —-, and ——- have 67, 70, 74, and 52 percent, respectively, of all employees as members of unions.
Denmark, Sweden, Finland, and Norway
That organization today publishes 2,508 translations of the Christian Bible, and has compiled a catalogue of the world's languages, called the ——— , which lists 6,909 distinct languages being spoken.
Ethnologue
In ——-, it is generally true that the farther north on the continent, the more participatory the management style.
Europe
There is great variation across ——- in regards to levels of union membership, ranging from 74 percent of employees in Finland and 71 percent in Sweden to 9 percent in Lithuania and 8 percent in France.
Europe
The average level of union membership across the whole of the ——-, weighted by the numbers employed in the different member states, is 23 percent, compared to about 11 percent in the United States.
European Union (EU),
Most ——- are unionized and enjoy more frequent vacations and holidays than U.S. workers.
European workers
Many —— also find the notion of team spirit difficult to grasp because the unionized environment has dichotomized worker-management relations throughout Europe.
Europeans
—— is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations.
Globalization
- impact virtually all strategic decisions.
Gobal considerations
In ——, cows are revered, so no leather gifts.
India
——— are accelerating the transfer of technology.
Innovative transport systems
For the first time ever, ——— (39%) overtook the United States (36%) in 2014 as having the most innovative companies in the world.
Japan
business relations operate within the context of Wa, which stresses group harmony and social cohesion.
Japan
In marketing, ——— strive to achieve "everlasting customers," whereas many Americans strive to make a one-time sale. - often criticize U.S. managers for worrying more about shareholders, whom they do not know, than employees, whom they do know.
Japanese managers
——- between domestic and foreign firms are becoming the rule rather than the exception
Joint ventures and partnerships
Japan's powerful business lobby, ——-, currently has no women on its 24-member board of directions, the body has mandated its member companies to publicize their gender equity strategies and progress ———- itself plans to appoint women into board positions.
Keidanren
———- face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers.
Multinational corporations (MNCs)
High union density in the ——— also reflects an approach that sees union membership as a natural part of employment.
Nordic countries
———-/ is a relevant factor in many strategic decisions, such as where to locate stores or factories.
Prevalence of unions
——- of Japan has proclaimed a goal to fill 30 percent of leadership positions in Japan with women by 2020. —— recently filled five open positions in his own cabinet with women.
Prime Minister Shinzo Abe
——1 summarized some important cultural differences between U.S. and foreign managers
Rose Knotts
top Asian companies on the top-100 list included —, ——, —-, —-, and ————
Samsung, Fujitsu, Hitachi, Canon, and for the first time, a Chinese company, Huawei.
In ——, activities involve concern for inhwa, or harmony based on respect of hierarchical relationships, including obedience to authority.
South Korea
——— in MNCs are often confronted with the need to be globally competitive and nationally responsive at the same time.
Strategists
———/ can be more difficult because different cultures have different norms, values, and work ethics.
Strategy implementation
Pioneering work to document the number of different languages spoken has been done by the ————-.
Summer Institute of Linguistics (SIL) International.
Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean. T/F
T
A strategic issue facing many firms is whether to publish their website material in different lan- guages, given that most of the world's population does not speak English. T/F
TRUE
Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations, participate in international trade fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish the risk of doing business in new markets. T/F
TRUE
Foreign revenue as a percentage of total company revenues already exceeds 50 percent in hundreds of U.S. firms, including ExxonMobil, Gillette, Dow Chemical, Citicorp, Colgate-Palmolive, and Texaco. T/F
TRUE
General Motors and Ford compete with Toyota and Hyundai. General Electric and Westinghouse battle Siemens and Mitsubishi. Caterpillar and John Deere compete with Komatsu. Goodyear battles Michelin, Bridgestone/Firestone, and Pirelli. Boeing competes with Airbus. T/F
TRUE
Level of union membership is clearly trending downward all over Europe. T/F
TRUE
Recent research reveals that countries are attractive not only because of their own institutions but also as a function of their serving as a platform for entry into other regions. T/F
TRUE
The United States defends women from sexual harassment, defends minorities from discrimination, and allows gay marriage, but not all countries embrace the same values. T/F
TRUE
The drive to improve the efficiency of global business operations is leading to greater functional specialization. T/F
TRUE
The price and quality of a firm's products and services must be competitive on a worldwide basis, not just on a local basis. T/F
TRUE
The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide. T/F
TRUE
With the rise in world commerce, government and regulatory bodies are more closely monitoring foreign business practices. T/F
TRUE
——— annually compiles a list of the world's most innovative companies, using metrics that include patent activity, R&D investment, success rate, globalization, and influence.
Thomson Reuters
—- making the list included Apple, Lockheed Martin, Google, Microsoft, Intel, and IBM,
Top U.S. firms
Managers in the ——- consistently put more weight on being friendly and liked, whereas Asian and European managers often exercise authority without this concern.
United States
The Japanese people place great importance on group loyalty and consensus——a concept called ——-. ——- requires that all members of a group agree and cooperate; this results in constant dis- cussion and compromise. Discussions potentially disruptive to —- are generally conducted in informal settings, such as at a bar, so as to minimize harm to the group's ——-. Entertaining is an important business activity in Japan because it strengthens Wa. Formal meetings are often conducted in informal settings.
Wa
A primary reason why most domestic firms do business globally is that growth in ——- the United States is considerably higher than inside.
demand for goods and services outside
More time and effort are required to identify and evaluate external trends and events in mul- tinational corporations than in ———/.
domestic corporations
Most ———- argue that protectionism harms the world economy because it inhibits trade among countries and invites retaliation.
economists
American managers in China have to be careful about how they arrange office furniture because Chinese workers believe in ——-, the practice of harnessing natural forces.
feng shui
More and more countries around the world are welcoming —— and —— .
foreign investment and capital
Perhaps the greatest advantage is that firms can ———- for their products and services, thus———
gain new customers - increasing revenues.
A——— seeks to meet the needs of customers worldwide, with the highest value at the lowest cost. This may mean locating production in countries with the lowest labor costs or abundant natural resources, locating research and complex engineering centers where skilled scientists and engineers can be found, and locating marketing activities close to the markets to be served.
global strategy
——— includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone. ——- global strategy integrates actions against competitors into a worldwide plan
global strategy
In many countries, effective managers are those who are best at negotiating with ——- rather than those who inspire workers.
government bureaucrats,l
——- have steadily become more international.
labor markets
——- make globalization decisions with special consideration in mind for how a particular region/country will facilitate the firm's further globalization into other regions/countries.
multinational firms
U.S. managers in Japan have to be careful about ——-, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting.
nemaswashio
Many U.S. managers are uncomfortable with ——, which is practiced in some countries.
nepotism
——— is not the only indicator of strength. In France, for example, unions have repeatedly shown that despite low levels of membership, they are able to mobilize workers in mass strikes and demonstrations to great effect.
percentage of union membership
Growth in —— and —— is a common organizational objective and often an expectation of shareholders because it is a measure of organizational success.
revenues and profits
