MNE Ch 9 Exam Questions & Answers 2024/2025
Multinational enterprises operate in many different local contexts, and their ability to make connections between local contexts is - ANSWERSessential to achieving competitive advantage in global strategies.
Realizing such competitive advantages ...
Multinational enterprises operate in many different local contexts, and their ability to make connections
between local contexts is - ANSWERSessential to achieving competitive advantage in global strategies.
Realizing such competitive advantages requires complex organizations that have to achieve many things
simultaneously.
Integration-responsiveness framework. - ANSWERSIt 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 - ANSWERSdriven by agglomeration benefits such as economies of scale
and global innovation
pressures for local responsiveness - ANSWERSare driven by different consumer preferences, and formal
and informal institutions of the host country.
Global integration and local responsiveness are - ANSWERSnot necessarily incompatible
The integration-responsiveness framework is thus not a scale, but a matrix with four strategies.
Integration-responsiveness framework = matrix with four strategies: - ANSWERSHome 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: - ANSWERSHome 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 - ANSWERSoften 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 -
ANSWERSorganizational structure set up when firms initially venture abroad.
It bundles all international activities in one unit
However, this structure often leads to two problems:
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