Podcast
Questions and Answers
What is considered an example of cultural distance in market entry strategy?
What is considered an example of cultural distance in market entry strategy?
Which entry mode has the highest degree of resource commitment?
Which entry mode has the highest degree of resource commitment?
In the context of international expansion, which factor is classified as economic/wealth distance?
In the context of international expansion, which factor is classified as economic/wealth distance?
What is the correct order of entry modes based on increasing resource commitment?
What is the correct order of entry modes based on increasing resource commitment?
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Which aspect does not fall under geographic distance?
Which aspect does not fall under geographic distance?
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What is a significant risk associated with an organization that operates with independent units?
What is a significant risk associated with an organization that operates with independent units?
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Which of the following best describes a global strategy in corporate management?
Which of the following best describes a global strategy in corporate management?
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What characterizes a transnational strategy?
What characterizes a transnational strategy?
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Which analysis is primarily concerned with the competitive environment of a new market?
Which analysis is primarily concerned with the competitive environment of a new market?
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In conducting a market attractiveness assessment, what should be the primary focus?
In conducting a market attractiveness assessment, what should be the primary focus?
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What is a potential drawback of operating under a corporate strategy that emphasizes independent units?
What is a potential drawback of operating under a corporate strategy that emphasizes independent units?
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Which of the following elements is NOT emphasized in a global strategy?
Which of the following elements is NOT emphasized in a global strategy?
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What is a major challenge in implementing a transnational strategy?
What is a major challenge in implementing a transnational strategy?
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What is one of the primary reasons firms internationalize according to YIP's factors?
What is one of the primary reasons firms internationalize according to YIP's factors?
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Which of the following is NOT classified as a market driver in YIP's assessment of international strategy potential?
Which of the following is NOT classified as a market driver in YIP's assessment of international strategy potential?
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What factor is NOT considered a government driver in internationalization?
What factor is NOT considered a government driver in internationalization?
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How do competitive drivers influence a firm’s internationalization strategy?
How do competitive drivers influence a firm’s internationalization strategy?
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What is the focus of internationalization strategy at the corporate level?
What is the focus of internationalization strategy at the corporate level?
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Which aspect is an example of exploiting country specific advantages?
Which aspect is an example of exploiting country specific advantages?
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What do market drivers primarily lead to in internationalization strategies?
What do market drivers primarily lead to in internationalization strategies?
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What condition is essential for governments to drive internationalization positively?
What condition is essential for governments to drive internationalization positively?
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What characterizes a multi-domestic strategy in corporate strategy?
What characterizes a multi-domestic strategy in corporate strategy?
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What is the primary challenge associated with an export strategy?
What is the primary challenge associated with an export strategy?
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Which factor is emphasized in the global-local dilemma when developing corporate strategy?
Which factor is emphasized in the global-local dilemma when developing corporate strategy?
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In which scenario is an export strategy most suitable?
In which scenario is an export strategy most suitable?
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What is a significant feature of a multi-domestic strategy?
What is a significant feature of a multi-domestic strategy?
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What drives the pressure for global integration in international business strategy?
What drives the pressure for global integration in international business strategy?
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Which of the following best describes the nature of operations in a multi-domestic strategy?
Which of the following best describes the nature of operations in a multi-domestic strategy?
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What is a potential consequence of adopting an overly home country-centered view in an export strategy?
What is a potential consequence of adopting an overly home country-centered view in an export strategy?
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Study Notes
Advanced Strategic Management: Internationalization Strategy
- The course focuses on sessions 16-17
- The study topic is Internationalization Strategy
- The analysis level is corporate level.
- The focal point is the geographical scope of an organization.
- Key drivers of internationalization include both geographic and firm-specific advantages.
- International strategies and market selection are crucial aspects of the course.
Why Firms Internationalize
- Firms internationalize for various reasons, often driven by the search for growth opportunities.
- Real GDP growth data (visualized) is part of the discussion on factors influencing decisions for international operations.
- Recent trends and examples, such as Cuba's opening to private businesses (Feb 2021), and other international agreements, support the analysis.
YIP's Factors: Assessing International Strategy Potential
- Market drivers influence standardization, impacting similarities in customer needs and tastes (e.g., luxury goods).
- Cost drivers directly contribute to cost savings: economies of scale beyond a certain country's origin, exploiting country-specific advantages (e.g., cheap labor).
- Government policies, like trade policies, technical standards, and host government policies affect international strategies.
- Competitive drivers include interdependence between countries, competitors' global strategies, and competition across borders.
Basic International Strategies
- The global-local dilemma is the extent to which products/services can be standardized across national borders or need to be adapted to local markets.
- Two main forces include: pressure for global integration and pressure for local responsiveness.
- Basic strategies include: Global, Transnational, Export, and Multi-domestic strategies.
Export Strategies
- Activities are concentrated in the home country.
- Primarily involves exporting products/services to other countries.
- Often involves relatively loose coordination overseas.
- Suitable when pressure for global integration and local responsiveness is low.
Multi-domestic Strategies
- Goods and services are produced locally in each national market.
- Markets are treated independently, prioritizing the needs of each local market.
- Maximizes local responsiveness with different offerings for various countries.
- Low level of coordination between markets (units).
- Associated with companies focusing on marketing.
Global Strategies
- Emphasizes global integration with minimal local adaptations.
- Products/services are standardized, focusing on economies of scale.
- Activities are centrally controlled through headquarters.
- Common in commodity markets (e.g., cement).
Transnational Strategies
- A complex model aimed at balancing both local responsiveness and global coordination.
- Leveraging knowledge exchange across dispersed units is key.
- Often involves operations that are flexible to adapt to local conditions while maintaining efficiency.
Market Selection and Entry
- Key factors for market selection and entry include market attractiveness to new entrants, reactiveness of existing players, and existing company clout.
- Analytical frameworks include Five Forces, PESTEL, and CAGE frameworks.
- Cultural, Administrative, Economic, and Geographic elements shape market selection and entry decisions.
Market Entry
- The staged international expansion model suggests a gradual resource commitment to new markets, developing market knowledge and capabilities.
- Various entry modes for market entry include exporting, alliances, franchising, and wholly owned subsidiaries.
- The degree of control and investment differs across these entry modes.
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Description
This quiz covers sessions 16-17 of Advanced Strategic Management with a focus on Internationalization Strategy. It explores the corporate-level analysis of geographical scope and key drivers of internationalization, including market selection and firm-specific advantages. Recent trends, such as Cuba's private business opening in 2021, are also discussed to illustrate the factors influencing international operations.
