7 Global Business Strategy Free Online FlashCards

What does a global business strategy determine?

It determines which markets to serve, what to offer, where to perform key activities, and how to coordinate them across countries.

What is global integration?

Global integration connects activities across countries to pursue efficiency, scale, and coordinated operations.

When is standardization especially attractive?

Standardization uses common products, processes, or branding across markets. It is especially attractive when customer needs are similar and scale economies matter.

What characterizes an international orientation?

An international orientation has low global integration and low local responsiveness; it transfers home-developed products and capabilities abroad with limited change.

Why can different activities need different locations?

The best location depends on the activity: a strong technical talent pool may suit research, while proximity to customers may favor assembly or support.

How do multinational firms coordinate dispersed units?

Coordination connects geographically dispersed units through tools such as shared standards, information systems, global planning, cross-border teams, and knowledge transfer.

What is local responsiveness?

Local responsiveness means adjusting offerings or operations to differences in customers, culture, regulations, and competition.

What is a trade-off of extensive adaptation?

Adaptation can improve local market fit, but extensive country-by-country customization may increase costs and complicate coordination.

How can a firm combine standardization and adaptation?

A firm can standardize its core product and production system while adapting features such as flavors, labels, advertising, and sales channels.

What characterizes a multidomestic orientation?

A multidomestic orientation has low global integration and high local responsiveness, giving country operations substantial freedom to tailor offerings and operations.

What characterizes a global orientation?

A global orientation has high integration and low local responsiveness; it standardizes and centrally coordinates activities to pursue efficiency and scale.

What characterizes a transnational orientation?

A transnational orientation seeks both global efficiencies and local adaptation. It can capture both benefits but requires substantial coordination and can be difficult to execute.