Term
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Definition
| the process of determining an organization’s basic mission and long-term objectives, then implementing a plan of action for attaining these goals |
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Term
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Definition
| - a worldwide strategy based on cost leadership, differentiation, and segmentation. |
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Term
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Definition
| strategic formulation and implementation utilizing strategies that are country-responsive and designed to protect local market niches. |
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Term
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Definition
| strategic formulation and implementation utilizing strategies of total quality management to meet or exceed customers’ expectations and continuously improve products or services. |
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Term
| Administrative Coordination |
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Definition
| strategic formulation and implementation in which the MNC makes strategic decisions based on the merits of the individual situation rather than using a predetermined economically or politically driven strategy |
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Term
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Definition
| the production and distribution of products and services of a homogeneous type and quality on a worldwide basis. |
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Term
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Definition
| - the need to understand the different consumer tastes in segmented regional markets and respond to different national standards and regulations imposed by autonomous governments and agencies. |
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Term
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Definition
| the production and distribution of products and services of a homogeneous type and quality on a worldwide basis. |
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Term
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Definition
| differentiated strategy emphasizing local adaptation. |
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Term
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Definition
| - mixed strategy combining low demand for integration and responsiveness. |
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Term
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Definition
| integrated strategy emphasizing both global integration and local responsiveness. |
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Term
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Definition
| the process of providing management with accurate forecasts of trends related to external changes in geographic areas where the firm currently is doing business or is considering setting up operations. |
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Term
| Key Factor for Success (KFS)- |
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Definition
| a factor necessary for a firm to effectively compete in a market niche. |
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Term
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Definition
| the process of providing goods and services in accord with a plan of action. |
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Term
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Definition
| an overseas operation that is totally owned and controlled by an MNC. |
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Term
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Definition
| the cross-border purchase or exchange of equity involving two or more companies. |
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Term
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Definition
| - any type of cooperative relationship among different firms. |
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Term
| International Joint Venture (IJV |
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Definition
| an agreement under which two or more partners from different countries own or control a business |
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Term
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Definition
| an agreement that allows one party to use an industrial property right in exchange for payment to the other party. |
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Term
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Definition
| a business arrangement under which one party (the franchisor) allows another (the franchisee) to operate an enterprise using its trademark, logo, product line, and methods of operation in return for a fee. |
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Term
| International Division Structure |
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Definition
| - a structural arrangement that handles all international operations out of a division created for this purpose. |
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Term
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Definition
| - a structural arrangement in which domestic divisions are given worldwide responsibility for product groups. |
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Term
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Definition
| a structure under which global operations are organized on a geographic rather than a product basis. |
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Term
| Global Functional Division |
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Definition
| a structure that organizes worldwide operations primarily based on function and secondarily on product. |
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Term
| Mixed Organization Structure |
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Definition
| a structure that is a combination of a global product, area, or functional arrangement. |
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Term
| • Transnational Network Structure |
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Definition
| a multinational structural arrangement that combines elements of function, product, and geographic designs, while relying on a network arrangement to link worldwide subsidiaries. |
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Term
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Definition
| in Japan, an organizational arrangement in which a large, often vertically integrated group of companies cooperate and work closely with each other to provide goods and services to end users. |
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Term
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Definition
| the use of defined structures and systems in decision making, communicating, and controlling. |
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Term
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Definition
| an organizational characteristic that assigns individuals to specific, well-defined tasks. |
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Term
| • Horizontal Specialization |
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Definition
| the assignments of jobs so that individuals are given a particular function to perform and tend to stay within the confines of this area. |
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Term
| • Vertical Specialization- |
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Definition
| - the assignment of work to groups or departments where individuals are collectively responsible for performance |
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Term
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Definition
| a management system in which important decisions are made at the top. |
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Term
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Definition
| pushing decision making down the line and getting the lower-level personnel involved. |
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Term
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Definition
| - the likelihood that a business’s foreign investment will be constrained by a host government’s policy. |
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Term
| • Macro Political Risk Analysis |
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Definition
| - analysis that reviews major political decisions likely to affect all enterprises in the country. |
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Term
| • Micro Political Risk Analysis- |
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Definition
| - analysis directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses in the country. |
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Term
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Definition
| - the seizure of businesses by a host country with little, if any, compensation to the owners. |
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Term
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Definition
| Laws- laws that require nationals to hold a majority interest in an operation. |
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Term
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Definition
| - government policies that limit the transfer of capital, payments, production, people, and technology in and out of the country. |
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Term
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Definition
| - government policies and procedures that directly constrain management and performance of local operations |
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Term
| • Ownership-Control Risks |
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Definition
| - government policies or actions that inhibit ownership or control of local operations. |
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Term
| • Conglomerate Investment |
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Definition
| - a type of high-risk investment in which goods or services produced are not similar to those produced at home |
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Term
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Definition
| an MNC investment in foreign operations to produce the same goods or services as those produced at home |
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Term
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Definition
| techniques that help the overseas operation become a part of the host country’s infrastructure. |
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Term
| • Protective and Defensive Techniques |
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Definition
| techniques that discourage the host government from interfering in operations. |
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Term
| • Proactive Political Strategies |
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Definition
| - lobbying, campaign financing, advocacy, and other political interventions designed to shape and influence the political decisions prior to their impact on the firm. |
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Term
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Definition
| the process of choosing a course of action among alternatives |
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Term
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Definition
| - the process of evaluating results in relation to plans or objectives and deciding what action, if any, to take. |
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Term
| • Management Decision and Control |
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Definition
| - the choice of a course of action among alternatives and the evaluation of results of those choices in relation to plans or objectives |
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Term
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Definition
| - a legal system that requires workers and their managers to discuss major decisions. |
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Term
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Definition
| - a Japanese term that means “decision making by consensus.” |
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Term
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Definition
| - a Japanese term that means “doing the right thing” according to the norm. |
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Term
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Definition
| a Japanese term that means “what one really wants to do.” |
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Term
| • Total Quality Management (TQM |
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Definition
| an organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers. |
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Term
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Definition
| the process of giving individuals and teams the resources, information, and authority they need to develop ideas and effectively implement them. |
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Term
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Definition
| a Japanese term that means “continuous improvement.” |
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Term
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Definition
| the use of face-to-face or personal meetings for the purpose of monitoring operations. |
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Term
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Definition
| the use of reports and other written forms of communication to control operations. |
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Term
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Definition
| - the amount remaining after all expenses are deducted from total revenues. |
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Term
| • Return on Investment (ROI)- |
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Definition
| return measured by dividing profit by assets |
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Term
| • Quality Control Circle (QCC)- |
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Definition
| )- a group of workers who meet on a regular basis to discuss ways of improving the quality of work. |
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Term
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Definition
| - an evaluation tool used to identify individuals with potential to be selected or promoted to higher-level positions. |
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