MGMT 80 Final Study Guide

Flashcards covering key vocabulary terms from the MGMT 80 Final Study Guide.

Shareholder Model

Prioritizes maximizing shareholder value.

Stakeholder Model

Balances interests of all stakeholders (employees, customers, community).

Agency Theory

Explores conflicts between owners (principals) and managers (agents).

CSR

Commitment to exceed legal and public expectations for stakeholders.

Sustainability

Meeting present needs without compromising future generations.

Economic Pillar of Sustainability

Financial viability.

Social Pillar of Sustainability

Community and labor well-being.

Environmental Pillar of Sustainability

Resource conservation and impact on environment

Liability of Foreignness

Firms face higher costs operating abroad due to unfamiliarity, discrimination, and coordination issues.

Market-seeking

Large customer base.

Resource-seeking

Access to raw materials.

Efficiency-seeking

Low-cost labor or production.

First-Mover Advantages

benefits that accrue to firms that
benefits to firms that enter the market first and that late entrants do not enjoyBrand recognition, Resource preemption, Technology leadership

Late-Mover Advantages

Learn from first movers’ mistakes, Reduced uncertainty, Free ride on established infrastructure

Non-Equity Modes

Exporting, licensing, turnkey projects

Equity Modes

Joint ventures, wholly owned subsidiaries (WOS)

Intellectual Property (IP) Rights

Patents, trademarks, copyrights

Patent Wars

Intense litigation between firms over tech ownership

Shark Attack

Sudden lawsuits from competitors or patent trolls

Collusion

Coordinated actions to reduce competition (tacit or overt)

Game Theory

Analyzes strategic interactions and responses among rivals

Red Ocean Strategy

Compete in existing markets through differentiation or cost leadership.

Blue Ocean Strategy

Create new market space, make competition irrelevant.

PCNs (Parent-Country Nationals)

Sent from home country

HCNs (Host-Country Nationals)

Hired in host country

TCNs (Third-Country Nationals)

From a country other than home/host

Advantages & Disadvantages of PCNs

Better control but high cost and cultural gap

Advantages & Disadvantages of HCNs

Local fit but less corporate loyalty

Advantages & Disadvantages of TCNs

Balanced skills but complex logistics

Ethnocentric Employee Selection

PCNs dominate foreign posts

Polycentric Employee Selection

HCNs manage local operations

Geocentric Employee Selection

Best talent regardless of nationality

Repatriation Challenges

Reverse Culture Shock, loss of professional identity or role, underutilization of global experience

Ethics

moral principles guiding behaviors

Normativism

 belief that ethical behavioral standards are unversal and firms and individuals should seek to uphold them consistently around the world

Relativism

 belief that ethical truths are not absolute but vary group to group

Utilitarian approach to governance

greatest good or least harm for most people

Rights based ethical approach to governance

Respect individual rights

Fairness/Justice approach to governance

ensure equality and impartiality

Common good ethical approach to governance

emphasizes societal well-being

Virtue Approach to governance

focus on moral character

Settings for CSR

Community, workplace, marketplace, supply chain, environment