Organizing and Innovating in the MNE Exam Bank Solution Manual Already Passed

Organizing and Innovating in the MNE Exam Bank Solution Manual Already Passed Multinational enterprises operate in many different local contexts, and their ability to make connections between local contexts is - Answers essential to achieving competitive advantage in global strategies. Realizing such competitive advantages requires complex organizations that have to achieve many things simultaneously. Integration-responsiveness framework. - Answers It is a framework with which the organizational structures of multinational enterprises can be assess. It deals simultaneously with pressures for global integration and pressures for local responsiveness. pressures for global integration - Answers driven by agglomeration benefits such as economies of scale and global innovation pressures for local responsiveness - Answers are driven by different consumer preferences, and formal and informal institutions of the host country. Global integration and local responsiveness are - Answers not necessarily incompatible The integration-responsiveness framework is thus not a scale, but a matrix with four strategies. Integration-responsiveness framework = matrix with four strategies: - Answers Home replication strategy Localization strategy Global standardization strategy Transnational strategy for each strategy of the Integration-responsiveness framework there are appropriate organizational structures that approximately match a strategic choices: - Answers Home replication strategy (with international division structure); Localization strategy (with geographic area strategy structure); Global standardization strategy (with global product division structure); Transnational strategy (with global matrix structure). A home replication strategy - Answers often referred to as 'international' strategy is based on the replication of home country-based competencies such as production scales, distribution efficiencies and brand positioning. The operation abroad is thus built to resemble the home operation. strategy best be applied when pressures for global integration and local responsiveness are low. relatively easy to implement may be used by firms who expand abroad for the first time. However, the home replication strategy does suffer from lack of local responsiveness, which may result in a loss of foreign customers as a result of foreign customer alienation. When following a home replication strategy, an international division structure is typically the best - Answers organizational structure set up when firms initially venture abroad. It bundles all international activities in one unit However, this structure often leads to two problems: - an international division serves as a 'silo' whose activities are not coordinated with the rest of the firm that focuses on domestic activities (consequently, this structure is mostly used by firms where international sales = only a small share of their revenues). - foreign subsidiary managers are not given sufficient voice relative to the heads of domestic divisions. localization strategy - Answers Is an extension of a home replication strategy. also called a multi-domestic strategy strategy that focuses on a number of foreign countries or regions, each of which is regarded as a stand-alone 'local' (domestic) market worthy of significant attention and adaptation. Therefore, it maximizes the local responsiveness. most suitable when pressures for global integration are low and pressures for local responsiveness are high. It is effective when differences between national and regional markets are clear. However: - high costs due to the duplication of efforts in multiple countries. - too much local autonomy, which leads to a lack of organízational control. (potential drawback) For multinational enterprises that adopt a localization strategy a geographic area structure is most suitable - Answers organizational structure that organizes the multinational enterprise according to different countries or regions, led by a country or regional manager. Each area is stand-alone. Contrary to international division, country and regional managers carry a great deal of weight. While this organizational structure provides extensive local responsiveness, It also encourages the fragmentation of the multinational enterprise into autonomous, hard-to-control 'fiefdoms'