MGT 4090 Management Policy & Strategy - Global Strategy

A collection of flashcards covering key concepts from the lecture on Global Strategy with a focus on management policy and strategy.

Dynamic Capabilities

The abilities of a firm to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.

Porter’s Diamond Framework

A model that explains why certain industries are more competitive in some nations than in others, based on four key attributes: factor conditions, demand conditions, competitive intensity, and related industries.

Cost Reductions

Strategies focused on minimizing expenses in production or service delivery to gain a competitive advantage.

Local Responsiveness

The ability of a company to tailor its products and services to meet the specific preferences and needs of local markets.

Globalization Hypothesis

The idea that consumer needs and preferences are converging globally, leading to similarities in consumption across different cultures.

International Strategy

A strategy where a company sells the same products or services in both domestic and foreign markets.

Multidomestic Strategy

A strategy that involves high local responsiveness and low cost reductions, tailored to local markets to meet the demands of local consumers.

Global-Standardization Strategy

A strategy characterized by high cost reductions and minimal local adaptation, focusing on economies of scale and a global division of labor.

Transnational Strategy

A strategy that seeks high cost reductions while maintaining high local responsiveness, often described as 'think globally, act locally'.

Death of Distance Hypothesis

The assertion that distance is becoming less relevant in economic interactions and that high-performing firms concentrate in specific countries.

Factor Conditions

The endowments of a country that support competitive advantage, including natural, human, and other resources.

Demand Conditions

The characteristics of demand within a firm's domestic market that hold companies to a high standard of value creation.

Competitive Intensity

The degree of competition within a market that drives firms to improve their performance and innovate.

Related and Supporting Industries (complemetors)

Industries that contribute to and strengthen the primary industry's competitive advantage through supportive goods or services.