International Business Strategies and Multinational Corporations

A set of flashcards summarizing key terms related to international business strategies and multinational corporations to aid in exam preparation.

International Business

The exchange of goods, services, and capital across international borders.

Multinational Corporations (MNCs)

Companies that operate in multiple countries, coordinating their operations globally.

Competitive Advantage

An attribute that allows an organization to outperform its competitors.

Global Strategy

A plan for managing the competition and navigating market dynamics on a global scale.

Porter’s Five Forces

A model that analyzes competitive forces in an industry to assess profitability and strategy.

Cost Leadership

A strategy aimed at becoming the lowest-cost producer in an industry.

Differentiation

A strategy focused on providing unique products or services that offer superior value to customers.

Focused Cost Leadership

A strategy targeting a specific market segment or niche while being the lowest-cost producer.

Focused Differentiation

A strategy that targets a specific market segment with unique products or services.

Market Expansion

The process of entering new markets to increase revenue and market share.

Cultural Differences

Variations in cultural norms and practices that can impact business operations.

Global Competition

Competition between businesses located in different countries.

Supply Chain Management

The management of the flow of goods and services from production to delivery.

Industry Rivalry

The level of competition among existing firms in an industry.

Threat of Substitutes

The likelihood that customers will switch to alternative products or services.

Bargaining Power of Buyers

The influence customers have on the pricing and terms of goods/services.

Bargaining Power of Suppliers

The influence suppliers have over the price and terms of the materials they provide.

Market Saturation

A situation where a market is no longer generating new demand.

Competitive Pressure

The force that drives businesses to improve their offerings and reduce prices.

Regulatory Compliance

Adhering to laws and regulations in various markets.

Product Adaptation

Modifying products based on local market needs and preferences.

Economic Factors

Economic conditions that can affect business performance, such as inflation or exchange rates.

Consumer Behavior

The study of how individuals make purchasing decisions.

Risk Diversification

Strategy to spread investments across various markets to reduce risk.

Profitability

The ability of a company to generate income relative to its expenses.

Technological Disruption

Change that occurs when new technologies alter the way businesses operate.

Cross-border Operations

Business activities conducted across different countries.

Product Uniqueness

Distinctive characteristics that set a product apart from others in the market.

Pricing Strategy

The method companies use to price their products or services.

Customer Value Proposition

The promise of value to be delivered to customers.

Long-term Success

Sustained achievement and profitability over an extended period.

Establishment of International Routes

The development of new flight paths between countries for airlines.

Market Entry Strategy

A plan for entering a foreign market.

Competitive Positioning

Strategically placing a business within the market relative to competitors.

Operational Efficiency

The ability to deliver products or services at a lower cost without sacrificing quality.

Brand Loyalty

Consumer commitment to repurchase or continue using a brand.

Customer Sensitivity

The degree to which customer choices are influenced by price and service quality.

Mass-market Consumers

A large group of consumers with similar needs and preferences.

Niche Market

A specialized segment of the market for a specific product or service.

Innovation

The introduction of new ideas, products, or processes.

Value Creation

The process of improving a company's competitiveness by increasing product or service worth.

Corporate Strategy

The overarching strategy that guides how a company conducts business.

Strategic Alignment

The process of linking an organization’s structure and resources to its strategy.

Market Trends

Patterns and shifts in consumer preferences that affect market dynamics.

Financial Stability

The ability of a business to manage its debts and maintain cash flow.

Operational Framework

The structure and procedures that guide a company’s operations.

Demand Fluctuation

Variations in the quantity of a product or service that consumers are willing to buy.

Market Research

The process of gathering, analyzing, and interpreting information about a market.

Strategic Partnerships

Cooperative agreements between businesses to leverage each other's strengths.

Business Model

The plan that explains how a company creates, delivers, and captures value.

Financial Metrics

Quantitative measurements used to assess a company's financial performance.

Corporate Governance

The system of rules and practices that direct a company’s operations.

Intellectual Property

Legal rights that give creators control over the use of their inventions.

Supply Chain Coordination

The collaboration among various stakeholders in managing supply chains.

Sustainable Practices

Business strategies that minimize environmental impacts and promote social responsibility.

Global Market Penetration

The strategy of entering and establishing a presence in foreign markets.

E-commerce

Commercial transactions conducted electronically on the internet.

Outbound Logistics

The processes involved in the movement and storage of products from a supplier to the customer.

Inbound Logistics

The processes involved in receiving and warehousing raw materials and inventory.

Crisis Management

Strategies implemented to deal with an emergency situation.

Resource Allocation

The distribution of resources among various projects or business units.

Cross-Cultural Management

Managing a diverse workforce from different cultural backgrounds.

Negotiation Skills

The abilities involved in reaching an agreement through discussion.

Performance Evaluation

The assessment of how effectively an organization meets its objectives.

Sales Strategy

A plan for reaching target customers and converting prospects into buyers.