kyle turner business strategy exam 2

What are the main two internationalization choices?

multi-domestic and global

What should drive the decision to employ a low-cost or differentiation strategy?

core competencies

What is the main internationalization issue associated with licensing in another country?

intellectual property rights

What are the 4 types of business units represented in the BCG matrix?

Stars, cash cows, question marks, and dogs

Buying companies that compete in a similar market, have a similar strategy, or produce a similar product is considered _____ integration.

horizontal

What is the main advantage associated with being a first-mover?

Early market share, market dominance, etc.

An organization with a particular focus on innovation and a large R&D budget is likely to employ a _____ strategy.

differentiation

Growing into new business areas with the purpose of creating value with excess resources is _____.

diversification

A _____ strategy is more focused on efficiency than unique value.

low cost, cost leader

best cost strategy

low prices with differentiation

global integration strategies

international, global, transnational, and multidomestic

Competitors

Market commonality and resource similarity

demand conditions

domestic based

factor conditions

resources

rivalry

Hyundai/Kia

related industry

supply chain

Diamond Model of National Advantage

Demand conditions, factor conditions, related industry, and rivalry

diversification

political risk, economic risk, cultural risk

benefits of globalization

market size, economies of scale, diversification

cooperative actions

joint ventures, strategic actions, co-locations, coopetition

tactical actions

short term, b level

strategic actions

long term, b&c levels

actions

strategic and tactical

mutual forbearance

A situation in which rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.

foothold

market positions

multiple markets

multi-point competition

strategy in specific markets

who, what, and how

b2c

end consumer

focused cost leadership

niche cost leader

focused differentiation

niche differentiation

differentiation disadvantages

counterfeits, perceived value, innovation

differentiation advantages

margins, buyer loyalty

cost leadership disadvantages

volume, absoletance

cost leadership advantages

speed, less barriers to entry

differentiation

unique value, premium pile

cost leadership

acceptable quality, low price

goal

create and maintain differentiation in market position

liability of foreignness

cultural, administrative, economic

entry modes

exporting, licensing, franchising, strategic alliance, acquisition, wholly owned subsidiaries

multi-domestic strategy

local

global strategy

standardized, efficient

_____ is generally the easiest mode for organizations to go international.

exporting

Acquisitions are considered to be what type of growth?

inorganic

The goal of vertical integration is to minimize the power of ______.

buyers and suppliers.