Term
| Three basic dimensions of an international business enterprise |
|
Definition
| Technical/product needs, functional needs, regional/enviormental |
|
|
Term
|
Definition
CEO
Manufacturing
Domestic operations manager
Foreign operations manager
Marketing
Domestic Operations Manager
Foreign operations manager |
|
|
Term
| Advantages of Functional Structure |
|
Definition
Emphasis on functional expertise
Tight control
Prevents internal conflicts present in the International Division |
|
|
Term
| Disadvantages of Functional Structure |
|
Definition
Weak regional coordination
Top heaviness
Emphasis on domestic sales |
|
|
Term
| International Division Structure |
|
Definition
Product C VP
Product D VP
International Division VP
International Division HR, Finance, Marketing, etc.
Canadian Manager
Mexico Manager
Brazil Manager |
|
|
Term
|
Definition
Supervises exports, distribution agreements, foreign sales branches, and foreign staff subsidiaries
Functional staffs developed across countries
Marketing, Finance, R&D, etc.
International Harvester and PepsiCo |
|
|
Term
| Advantages of International Divison |
|
Definition
Focused international responsibility & authority
International executive development
International managers have single strong voice
Company-wide view of international operations
Top management aware of consequences |
|
|
Term
| Disadvantages of International Division |
|
Definition
Bottleneck
Exports slowdown
Internal conflict—domestic vs. international
International vs. other divisions
International managers spread too thin |
|
|
Term
| Foreign Subsidiary Structure |
|
Definition
CEO
Subsidiary A VP
Subsidiary B VP
Subsidiary C VP |
|
|
Term
|
Definition
Each foreign subsidiary is treated as an entity
A multidomestic strategy is used—different strategy for each foreign market |
|
|
Term
| Advantages of Foreign Sudsidary |
|
Definition
Autonomy of affiliates,
direct top management involvement |
|
|
Term
| Disadvantages of Foreign Subsidary |
|
Definition
Diffuseness of international responsibility,
potential unwieldiness |
|
|
Term
| Product Division Structure |
|
Definition
CEO
Product C Vice-President
International General Manger
Domestic General Manager
Product D Vice-President
International General Manager
Domestic General Manager |
|
|
Term
|
Definition
Used when corporations are diversified and contain many products
Each product division is responsible for the sales and profits of its products |
|
|
Term
| Advantages of Product Division |
|
Definition
| Product and technology emphasis, Worldwide product planning, Conflict minimized |
|
|
Term
| Disadvantages of Product Division |
|
Definition
| : Weakness in world wide know how, Weakness of multiproduct systems, Division managers lack International skills, Foreign Coordination problems |
|
|
Term
|
Definition
CEO
North America VP
Production
Marketing
Europe VP
Production
Marketing |
|
|
Term
|
Definition
Regional heads responsible for specific territories such as Europe, Asia, North America
Used by firms with low technology and high marketing orientation |
|
|
Term
| Advantages of Regional Structure |
|
Definition
| Decentralization, Adaptation, Single management units possess regional knowledge |
|
|
Term
| Disadvantages of Regional Structure |
|
Definition
| Weak worldwide product knowledge, Technology transfer barriers, Policy barriers, Costly application, Weak communication |
|
|
Term
|
Definition
Combines highly decentralized decision making with centralized corporate strategy and vision—A contemporary model
Used by global corporations |
|
|
Term
| Advantages of Matrix Structure |
|
Definition
| Coordination and cooperation, Overall global performance highlighted, Conflicts often resolved at lowest level |
|
|
Term
| Disadvantages of Matrix Structures |
|
Definition
| Expensive and complex, Managers with weak international experience, Paperwork, Dual subordination, Quick decisions |
|
|
Term
| Three Approaches to Staffing Foreign Subsidiaries |
|
Definition
| Expatriate, Host country national, Third country national |
|
|
Term
| Advantages of Expatriates |
|
Definition
Knowledge of the corporate culture
Knowledge of management techniques
Loyalty
Influence at headquarters
Easier to assess
Foreign Image |
|
|
Term
|
Definition
Expensive orientation program
Unfamiliar with foreign environment
Communication problems
May not adapt to foreign culture
Best qualified may not want the assignment
Expensive incentives required
Low productivity early on
No goodwill
Expensive repatriation programs
Ulterior motives for accepting assignment |
|
|
Term
| Advantage of Host Country |
|
Definition
Familiar with local environment
Can sometimes be productive right away
Knows the local business details
Goodwill
Less expensive to employ |
|
|
Term
| Disadvantage of Host Country Locals |
|
Definition
Loyalty to country, not company
Difficult to find qualified people
Problems in communication with home office
Does not understand corporation’s culture
More difficult to assess abilities
May not be mobile
Ulterior motives
Weak in dealing with local government
Expensive training/development programs |
|
|
Term
| Advantages of Third Party Personnel |
|
Definition
Additional source of personnel
Costs less than home country expatriate
Greater adaptability than expatriate
Helps when home country does not have good relations with the host country |
|
|
Term
| Disadvantage of Third Party Personnel |
|
Definition
Locals may prefer own citizens in management
The employee’s home country may not maintain a good relationship with the host country
Ulterior motives of appointee
Does not understand corporation’s culture |
|
|
Term
|
Definition
Foreign country’s physical and social environments “culture shock”
Different level of technical sophistication in host country
Home country’s conflicting objectives and policies
Overcentralization
Gender
Inadequate repatriation programs
Pitfalls in HR planning function |
|
|
Term
| Dimensions of Effective Expatriate |
|
Definition
Self-Oriented Dimension
Others-Oriented Dimension
Perceptual Dimension
Cultural-Toughness Dimension |
|
|
Term
| Chief Learning Officer (CLO) |
|
Definition
| is responsible for developing—on a worldwide scale---the organization’s human talent and for utilizing the human knowledge present in the organization. EX. Coca Cola |
|
|
Term
|
Definition
Characteristics of the Message
Characteristics of the Language
Relationship with Client
Context
Interpreter’s Skills
Characteristics of the Parties
Cultural Norms and Values |
|
|
Term
|
Definition
| People dislike work and must be coerced, controlled, directed, or threatened |
|
|
Term
|
Definition
| People like work and will use self direction and self-control to will seek responsibility |
|
|
Term
|
Definition
| People dislike change and will avoid it if they can |
|
|
Term
|
Definition
| Change in life is natural |
|
|
