Competing for Advantage. Chapter 10 International Strategy. PART III CREATING COMPETITIVE ADVANTAGE. The Strategic Management Process. International Strategy. Key Terms International diversification
CREATING COMPETITIVE ADVANTAGE
Strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into different geographic locations or markets
Strategy through which the firm sells its goods or services outside the domestic market
Strategy which focuses on the scope of a firm’s operations through both product and geographic diversification
Liabilities associated with being a foreign business in a highly different business environment can make competing on a worldwide scale risky and expensive.
International strategy in which strategic and operating decisions are decentralized to the strategic business unit in each country to allow that unit to tailor products to the local market
Organizational structure which emphasizes national interests and facilitates the firms' efforts to satisfy local or cultural differences (used to implement the multidomestic strategy)
International strategy through which the firm offers standardized products across country markets, with the competitive strategy being dictated by the home office
Organizational structure in which decision-making authority is centralized in the worldwide division headquarters to coordinate and integrate decisions and actions among divisional business units (used to implement the global strategy)
International strategy through which the firm seeks to achieve both global efficiency and local responsiveness
Building a shared vision and individual commitment through an integrated network
Organizational structure in which characteristics and mechanisms are drawn from both the worldwide geographic area structure and the worldwide product divisional structure (used to implement the transnational strategy)
International Diversification and Risk
As firms internationalize, they may be tempted to locate facilities where product liability laws are lax in testing new products. Is this an acceptable practice? Why or why not?
Regulation and laws regarding the sale and distribution of tobacco products are stringent in the U.S. market. What are the ethical implications of U.S. firms pursuing marketing strategies for tobacco products in other countries that would be illegal in the United States?
Some companies outsource production to firms in foreign countries to save money. To what extent is a company morally responsible for the way workers are treated by the firms in those countries to which they outsource production?
Global and multidomestic strategies call for different competitive approaches. What ethical concerns might surface when firms try to market standardized products globally? When should firms develop different products or approaches for each local market?
Are companies morally responsible to support the U.S. government as it imposes trade sanctions on other countries, such as China, because of human rights violations? What if a significant amount of its international business is in one of those countries?
Latin America has been experiencing significant changes in both political orientation and economic development. What strategies should foreign international businesses implement, if any, to influence government policy in these countries? Can businesses realistically expect to influence political changes?