Intro to IB week 13

global integration (or aggregation) strategies

Strategies that focus on synergies between operations at different locations.

local responsiveness (or adaptation) strategies

Strategies that deliver locally adapted products in each market.

integration-responsiveness framework

A framework of MNE management on how to simultaneously deal with global integration and local responsiveness.

home replication strategy

A strategy that emphasizes international replication of home country-based competencies such as production scales, distribution efficiencies and brand power.

localization (multidomestic) strategy

A strategy that focuses on a number of foreign countries/ regions, each of which is regarded as a stand-alone ‘local’ (domestic) market worthy of significant attention and adaptation.

global standards strategy

A strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages.

transnational strategy

A strategy that aims to be simultaneously costefficient, locally responsive and learning-driven around the world.

corporate headquarters (HQ)

An MNE’s central unit that hosts corporate executives as well as central staff functions.

international division

A structure bundling all international activities into one unit.

geographic area structure

An organizational structure that organizes the MNE according to different countries and regions.

regional headquarters (regional HQ)

An organizational unit coordinating and supporting activities across a multi-country region.

country managers

Business leaders of a specific geographic area or region.

global product division

An organizational structure that assigns global responsibilities to each product division.

global matrix

An organizational structure with two set lines of authority, typically a regional line and a product line

worldwide (or global) mandate

A charter to be responsible for one MNE function throughout the world.

subsidiary initiatives

The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibility

knowledge management

The structures, processes and systems that actively develop, leverage and transfer knowledge.

explicit knowledge

Knowledge that is codifiable (that is, can be written down and transferred with little loss of its richness).

tacit knowledge

Knowledge that is non-codifiable, and its acquisition and transfer require hands-on practice

organizational (teamembedded) knowledge

Knowledge held in an organization that goes beyond the knowledge of the individual members.

boundary spanners

Individuals with strong networks across business units, and frequently communicating with their network

reverse knowledge transfer

Knowledge created in a subsidiary being transferred from the subsidiary to a parent organization.

community of practice (CoP)

Group of people doing similar or related work and sharing knowledge about their practices of work.

virtual communities of practice

Communities of practice interacting via the internet.

knowledge governance

The structures and mechanisms MNEs use to facilitate the creation, integration, sharing and utilization of knowledge.

absorptive capacity

The ability to recognize the value of new information, assimilate it and apply it.

social capital

The informal benefits individuals and organizations derive from their social structures and networks.

national innovation systems

The institutions and organizations that influence innovation activity in a country

business unit headquarters

The central coordinating unit for an entire business unit.

marketing

Efforts to create, develop and defend markets that satisfy the needs and wants of individual and business customers.

supply chain

Flow of products, services, finances and information that passes through a set of entities from a source to the customer.

supply chain management

Activities to plan, organize, lead and control the supply chain.

consumer research

Research aiming to explain and predict the behaviours of consumers.

big data analytics

Research methods exploring very large-scale datasets.

ethnography

Research method exploring cultural phenomena through participant observation.

marketing mix

The four underlying components of marketing: product, price, promotion and place. product The offerings that customers purchase.

market segmentation

A way to identify consumers who differ from others in purchasing behaviour.

multi-tier branding

A portfolio of different brands targeted at different consumer segments.

country of origin images

Associations of a brand with the culture of a particular country

price

The expenditures that customers pay for a product.

price elasticity

How demand changes when prices change.

total cost of ownership

Total cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/ service cost.

promotion

Communications that marketers insert into the marketplace.

place

The location where products and services are provided.

distribution channel

The set of business units and intermediaries that facilitates the movement of goods to consumers.

inbound logistics

Purchasing and the coordination of intermediaries on the supply side

outbound logistics

Sales and the coordination of intermediaries on the customer side.

intra-logistics

The effective movement of goods within a factory.

agility

The ability to react quickly to unexpected shifts in supply and demand.

adaptability

The ability to change supply chain configurations in response to long-term changes in the environment and technology

alignment

The alignment of interests of various players.

third-party logistics (3PL)

A neutral intermediary in the supply chain that provides logistics and other support services.

standards in advertising

Formal rules designed by governments to protect consumers.

business-to-consumer (B2C)

marketing Marketing to final consumers of a product.

business-to-business (B2B)

marketing Marketing to other businesses that will further process the product.

relationship marketing

A focus to establish, maintain and enhance relationships with customers.

ingredients brand

Creating a brand identity for a component of a product.