Term
| What Are The Three Reasons Why Companies Embark On Expansion Strategies? |
|
Definition
Improve Cost Effectiveness Of Operations
New Customers
Follow Global Customers |
|
|
Term
| What Are The Three Things A Firm Must Understand When Planning To Expand Into Another Country? |
|
Definition
Regional Differences
Needs Of Local Customers
The Firm's Capabilities In Relation To The Dynamics Of The Industry |
|
|
Term
| What Are The Three Common Mistakes Firms Make When Entering A New Market? |
|
Definition
Lack Of Thorough Research
No Understanding Of Competitors
Not Offering A Truly Targeted Value Proposition To Buyers |
|
|
Term
| What Does A PESTEL Analysis Examine? |
|
Definition
| A target market’s political, economic, social, technological, environmental, and legal dimensions in terms of both its current state and possible trends. |
|
|
Term
| What Does An Understanding Of The Dimensions Of PESTEL Help You Do? |
|
Definition
| Grasp the dimensions on which a target market or industry may be more global or local. |
|
|
Term
| How Is Importing A Stealth Form Of International Entry? |
|
Definition
| The factors that favor globalization can also lead to a higher level of imports, and inputs can be sourced from anywhere they have either the lowest cost, highest quality, or some combination of these characteristics. |
|
|
Term
| List The Five Most Common Modes Of International-Market Entry |
|
Definition
Exporting
Licensing
Partnering
Acquisition
Greenfield Venturing |
|
|
Term
| What Is The Advantage To Exporting? |
|
Definition
| A company can avoid the substantial costs of establishing its own operations in the new country. |
|
|
Term
| What Is The Disadvantage To Exporting? |
|
Definition
| A company must find a way to market and distribute its goods in that country. |
|
|
Term
| What Is The Advantage To Licensing Or Franchising? |
|
Definition
|
|
Term
| What Is The Disadvantage To Licensing Or Franchising? |
|
Definition
| Gives Up Control Of Manufacturing And Marketing In The New Market |
|
|
Term
| What Are The Advantages To Partnerships And Strategic Alliances? |
|
Definition
Reduces The Amount Of Investment
Company Appears More Local Through Partnership |
|
|
Term
| What Is The Disadvantage To Partnerships And Strategic Alliances? |
|
Definition
Higher Costs Than Other Entry Methods
Potential Integration Issues |
|
|
Term
| What Are The Advantages To Acquisitions? |
|
Definition
|
|
Term
| What Is The Disadvantage To Acquisitions? |
|
Definition
Expensive
Possible Integration Issues |
|
|
Term
| List The Three Advantages To Greenfield Ventures |
|
Definition
Best opportunity to retain full control of operations
Gain local market knowledge
Be seen as an insider that employs locals |
|
|
Term
| List The Two Disadvantages To Greenfield Ventures |
|
Definition
Slow Time To Enter The Market
High Costs |
|
|
Term
| List The Four Elements That Determine The Entry Mode A Firm Chooses |
|
Definition
Firm Size
Financial Strength
Economic Conditions Of Target Country
Regulatory Conditions Of Target Country |
|
|
Term
| What Does A CAGE Analysis Ask You To Compare? |
|
Definition
| A possible target market to a company’s home market on the dimensions of culture, administration, geography, and economy. |
|
|
Term
| What Does A CAGE Analysis Yield? |
|
Definition
| Insights in the key differences between home and target markets and allows companies to assess the desirability of that market. |
|
|
Term
| What Can A CAGE Analysis Help You Identify? |
|
Definition
|
|
Term
| Why Are Institutional Differences Important? |
|
Definition
| The absence of specialized intermediaries can raise transaction costs just as their presence can reduce them. |
|
|
Term
| What Was Scenario Planning Developed For? |
|
Definition
| Integrating changes and uncertainties in the external context into overall strategy. |
|
|
Term
|
Definition
| Complex, dynamic, interactive stories told from a future perspective. |
|
|
Term
| What Do You Need To Develop Useful Scenarios? |
|
Definition
| Rich Understanding Of Your Industry, PESTEL Analysis And The Global Conditions That Affect Them |
|
|
Term
| List The Six Steps For Formulating A Scenario Plan |
|
Definition
Choose Target, Source and Scenario
Brainstorm Influencers
Define Two Dimensions Of Greater Uncertainty
Detail The Four Quadrants Of The Scenario With Stories About The Future
Identify Indicators That Reveal What Scenario Is Unfolding
Assess The Strategic Implications Of Each Scenario |
|
|
Term
| What Should You Consider When Selecting Two Dimensions Of Change That Will Serve As The Two Dimensions Of Your Scenario-Planning Matrix? |
|
Definition
| Distillation Of Issues And Drivers |
|
|
Term
| Does The PESTEL Focus On The Internal Or The External Factors? |
|
Definition
|
|
