Business Planning and International Diversification

The risks include a lack of direction and increased uncertainty, which can lead to poor decision-making and resource wastage, unlike traditional planning which aims to minimize these risks.

The effectiveness of business planning is greater in firms at early stages and in low-uncertainty environments, while its effectiveness diminishes in high-uncertainty contexts.

Small firms must balance structured business planning with the flexibility needed to adapt to unforeseen challenges.

<p>The initial decline is attributed to learning and governance costs that firms incur as they broaden their international reach.</p> Signup and view all the answers

<p>Firms face liabilities of foreignness, newness, and coordination costs, which increase operational risks and can negatively affect performance.</p> Signup and view all the answers

<p>Intangible assets like brand equity and technological know-how help firms leverage diversification benefits and navigate foreign market challenges more effectively.</p> Signup and view all the answers

<p>Balancing planning with flexibility allows entrepreneurs to respond promptly to market changes while still having a strategic direction.</p> Signup and view all the answers

<p>At high levels of diversification, complexity costs can outweigh the benefits, leading to degraded performance due to increased coordination challenges.</p> Signup and view all the answers

<p>In strong appropriability regimes, innovators retain most economic rents due to robust IP protections. In weak regimes, rents are influenced by access to complementary assets, capturing more value when assets are freely available.</p> Signup and view all the answers

<p>Industry characteristics such as high R&amp;D costs, an intense competitor landscape, and the ease of imitation make IP protection more attractive. These factors ensure exclusivity and protection from replication.</p> Signup and view all the answers

<p>Resources are VRIN when they are Valuable, Rare, Inimitable, and Non-substitutable. Stakeholder relationships are difficult to imitate due to trust, historical interaction, and embedded social capital.</p> Signup and view all the answers

<p>A short-term focus on immediate profits leads managers to disregard long-term stakeholder relationships. Resource constraints can also prevent firms from investing in stakeholder initiatives.</p> Signup and view all the answers

<p>They enhance collaboration, improve reputation, and generate customer loyalty, which strengthen the market position and create barriers to entry for competitors.</p> Signup and view all the answers

<p>The model emphasizes the interaction between service convenience, ease of use, and customer satisfaction, with customer expectations acting as mediators.</p> Signup and view all the answers

<p>Moderators include customer experience level, task complexity, and availability of alternative service options, all influencing perceived value of self-service.</p> Signup and view all the answers

<p>Self-service technologies can enhance retention by reducing effort and improving satisfaction, but may cause churn if perceived as impersonal or inefficient for complex tasks.</p> Signup and view all the answers

<p>Flexible resources are better suited for unrelated diversification, whereas specific resources are leveraged for related diversification due to potential synergies.</p> Signup and view all the answers

<p>Patents and trademarks are often industry-specific and generate synergies in related fields, while unrelated diversification may dilute these advantages.</p> Signup and view all the answers