15 Questions
What are the key success factors when entering the China marketplace, according to A. T. Kearney Consultants?
Diligent and realistic assessment of market dynamics, striking a positive working relationship with their local partner, and localization of their management team.
What are some implications of the age of globalization?
More choices, lower prices, homogenisation of cultures, and diverse career choice and progression.
What are some arguments for and against the unequal growth resulting from globalization?
For: Developing countries exceed global average in trade growth + some emerging high too; Against: Allegedly at cost of poorer countries, high amongst G7 except low for some like Japan.
What are some examples of environmental dynamics that international entrepreneurs must consider when starting a business?
Currency, inflation, interest rates, accounting practices, cultures, social customs, laws, political stability
What are some examples of motives to internationalize a business?
Market motives (offensive and defensive), strategic motives, and economic motives
What are some examples of economic motives for internationalizing a business?
Misfit with external environment and the desire to capitalize on comparative advantages, be a first mover, integrate vertically, or follow major customers abroad
What are some factors that determine the scope of a firm and its international success or failure?
Acquiring and leveraging competitive advantage, rivalry amongst competitors, threat of new entrants, bargaining power of suppliers, and bargaining power of buyers
What are the three generic strategies discussed in the text?
The three generic strategies discussed in the text are cost leadership, differentiation, and focus strategy.
What are the advantages and drawbacks of the cost leadership strategy?
The advantages of the cost leadership strategy are minimizing threats from the five forces. The drawbacks include the danger of being outcompeted on costs and continuously reducing costs.
What are the advantages and drawbacks of the differentiation strategy?
The advantages of the differentiation strategy include delivering products that are perceived to be valuable and unique, targeting smaller customer segments willing to pay premium prices. The drawbacks include difficulty in sustaining differentiation over the long run, potential decline in brand loyalty, and relentless efforts of competitors to imitate.
What is the key lesson regarding strategic dimensions?
The key lesson is to choose one strategic dimension (cost or differentiation) and execute consistently, avoiding getting 'stuck in the middle'.
What is the industry competition-based view?
The industry competition-based view provides a systematic foundation for industry analysis and a set of answers to the four fundamental questions in strategy. It also emphasizes the importance of industry-specific conditions in determining firm performance.
How can firms like IBM consistently do well for 100 years?
Firms like IBM can consistently do well for 100 years by having resources and capabilities that are specific to their success and not shared by their unsuccessful competitors.
What is the resource-based view?
The resource-based view focuses on how individual firms differ from each other within an industry based on their unique combination of resources and capabilities. It suggests that firms can outperform the industry average consistently and significantly.
What are the four components of competitive advantage according to the VRIO framework?
The four components of competitive advantage according to the VRIO framework are value, rarity, imitability, and organization.
Test your knowledge on key success factors for entering the China marketplace, implications of globalization, arguments for and against unequal growth, environmental dynamics for international entrepreneurs, and motives for internationalizing a business.
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