MNE 3 Competitive strategies Exam Questions and Answers Latest update Rated 100%

MNE 3 Competitive strategies Exam Questions and Answers Latest update Rated 100% What are the forces for a global industry? - Answers - High global integration forces - Low national responsiveness forces What are the forces for a multinational industry? - Answers - Low global integration forces - High national responsiveness forces What are the forces for a transnational industry? - Answers - High global integration forces - High national responsiveness forces What are some reasons that firms go international? - Answers - Strategic intent - Global-scale efficiency - Multinational flexibility/responsiveness - Worldwide learning and innovation What are the three strategic goals? - Answers 1. Global scale efficiency 2. Multinational flexibility/responsiveness 3. Worldwide learning and innovation How can global scale efficiency be achieved? - Answers By exploiting economies of scale and scope What are economies of scale? - Answers Cost advantages associated with large operations What are economies of scope? - Answers cost savings from leveraging core competencies or sharing related activities among businesses in a corporation Best method for multinational flexibility/responsiveness - Answers Look at the different opportunities in a specific environment and then understand which is the best environment and opportunities for the company What needs to be considered for multinational flexibility/responsivness? - Answers That the opportunities in a specific market are constantly changing What are some potential risks in a country? - Answers - Country's economic state - Political state - Availability of required resources - Cultural barriers - Competition of the market - Natural environment What are the methods to achieve a competitive advantage, and the above goals? - Answers Economies of scale, economies of scope and national diffferences What are national differences? - Answers - Include cultures, tastes, behaviours, local competitors - Differences in costs and currency stability What do the different environments that MNEs are exposed to promote? - Answers The different stimuli allows them to create different learning opportunities Why is it difficult to manage internationally? - Answers - Differences in social/cultural environment - Different legislations and regulations What are the aspects of CAGE? - Answers - Cultural distance - Administrative distance - Geographic distance - Economic distance What does a high CAGE distance mean for a firm? - Answers There is going to be a higher management time and cost for the investment in this country What are two major factors that increases trade between countries? - Answers - Having a common language - Having a common currency What are the four competitive strategies that a firm can follow? - Answers 1. Global 2. Transnational 3. International 4. Multi-national Characteristics of an international strategy - Answers - Low need for local adaption - Low need for global coordination What is the focus on an international strategy? - Answers Creating and exploiting innovations on a worldwide basis, using all different means to achieve this Is anything centralised with an international strategy? - Answers Yes - core competencies are centralised Who commonly used an international strategy? - Answers US based MNEs such as Kraft and Pfizer Disadvantages of international strategy? - Answers Deficiencies of both efficiency and flexibility because they did not develop: - Centralised and high scale-operations similar to global strategies - OR high degree of local responsiveness that multinational companies have What are the pros of an international strategy? - Answers The ability o create and leverage innovations What is a multi-national strategy? - Answers A strategy that focuses on national differences to achieve most of its strategic objectives What happens within an international strategy? - Answers - Compaies differentiate their products and services in response to high differences in customer preferences, industry characteristics and government regulations What are local-for-local innovations? - Answers A process where the subsidiary identified local needs and used its own local resources to respond to those needs Which strategy adopts local-for-local? - Answers Multinational Benefits of a local-for-local strategy - Answers Allows those adopting a multi-national strategy to match costs and revenues on a currency-by-currency basis Who typically adopts a multi-national strategy? - Answers European countries such as Unilever and Nestle Benefits of a multinational strategy - Answers - Ability to adapt products and services to local market conditions - Match costs and revenue on a currency-by-currency basis - Ability to detect niches within markets - Local self-sufficiency and local-autonomy to high flexibility and responsiveness to local environments Configuration of assets within a multinational strategy - Answers Decentralised and self-