Configuration and Coordination in Global Business

Configuration of Firm's Activities

• Refers to how a firm organizes and aligns its operations across multiple global locations to maximize efficiency and effectiveness.

Goal of Coordination in International Business

• Aims to integrate and harmonize activities across different countries to optimize resource use and achieve corporate objectives.

TCA Model Consideration for Market Selection

• Emphasizes the importance of transaction costs, including potential risks and expected returns, influencing market entry decisions.

Advantage of Geographically Dispersed Activities

• Facilitates cost reduction and operational efficiencies by leveraging regional strengths and resources.

Role of an Intermediate in Sales Channels

• Acts as a bridge between the producer and the end customer, helping to facilitate sales and adapt marketing strategies to local conditions.

Challenge in Cross-Cultural Management

• Navigating diverse cultural norms and values that affect communication, leadership, and teamwork within international teams.

Focus of International Marketing Management

• Concentrates on developing and implementing marketing strategies that effectively target and engage diverse consumer markets across borders.

Key Driver of Globalization

• Advancements in technology and communication, allowing for seamless connectivity and interaction between markets worldwide.

Key Elements of Marketing According to Philip Kotler

• Product, Price, Place, Promotion, People, Process, and Physical evidence as foundational aspects of marketing strategies.

Characteristic of Global Marketing Management

• Focuses on creating a unified approach that considers local market differences while maintaining a global perspective.

Key Driver of Globalization Potential

• Market factors such as consumer demand, competition, and economic conditions that encourage firms to expand internationally.

Industry Cost Driver of Globalization

• Economies of scale which allow firms to reduce costs by increasing production or consolidating operations across multiple regions.

Factor in Determining Globalization Potential of an Industry

• The degree of market integration and openness to foreign investment, which affects a firm's ability to compete globally.

Two Dimensions of Standardization According to Yip (1991)

• Product standardization and marketing program standardization, highlighting the balance between global efficiency and local adaptation.

Company's Ability to Coordinate Activities Across Countries

• Often referred to as "global integration," representing a firm's capacity to manage operations seamlessly on an international scale.

Concept of Leveraging Experiences in Foreign Markets

• Known as "experience curve," allowing companies to apply lessons learned from previous markets to new, similar market contexts.

Process of Adjusting Marketing Mix for Foreign Markets

• Referred to as "market adaptation," vital for meeting local consumer needs and regulatory requirements.

Adaptation of Marketing Strategies for Small Economies

• Companies from small, open economies often need to tailor strategies to effectively compete and respond to local market dynamics.