Rechtswissenschaften

Sequential Time = events happen in a logical order

- high value on punctuality

- sticking to your plans

- time is money

Synchronous Time = many task at the same time

- past, present and future affect each other

- view plans/commitments as moveable

Inner directness = I control my destiny

- focus on my own preferences

- control environment to achieve their goals

Outer directness = THEY control my destiny

- take external circumstances into consideration

- environment controls them

- avoid conflicts

1. global sourcing

2. exporting

3. licensing

4. joint venture

5. FDI

is a planned set of actions that managers employ (verwenden) to make best use of the firms resources & core competencies to gain competitive advantage.

Resource based view = where excellent in?

Market Based view = where can I be successful?

1. Efficiency = lowering the costs of the firms operations, efficient int. value chain  eg production in low cost country

2. Flexibility = develop flexibility to accommodate diverse country-specific risk & opportunities

3. Learning = learning from operating in int. environment & exploit (use) it on a worldwide basis. eg by gaining new technical know how, new product ideas

Strategy

Organizational Structure

Organizational Process

Organizational Culture

Visionalry Leadership

1. International mind-set and cosmopolitan (Weltbürger) values

--> openness to and awarness of diversity across cultures

2. Strategic Vision

--> what the firm wants to be in the future

3. Willingness to invest in human assets

--> hiring foreign nationals, language training to develop int. managers

4. Willingness to commit resources

--> visionary leaders commit to them & believe the firm will eventually succed

-------> visionary Leadership is a Key success Factor at BORN GLOBAL FIRMS <---------

Standardidization (Pressure for global integration & cost reduction)
 vs.

Differentiation (pressure for local responsiveness)

1. industries producing commodity type products (Verbrauchsware) where price is the main comp. weapon

2. major competitors are based in low cost locations

3. many competitors based in low cost locations

4. powerful consumers which face low switching costs.

1. different consumer tastes & preferences

2. different traditional infrastructure

3. different distribution channels

4. host-government demand (change packaging)

1. International Strategy (Home Replication, Ethnocentric)

2. Localization Strategyy (Multidomestic, Polycentric )

3. Transnational Strategy (Regiocentric)

4. Global Standardization Strategy (Geocentric)

- take care of customer needs

- Accomodate (erfassen) differences in distribution channels

- respond to local competition

- adjust to cultural differences

- meet host government requirements & regulations

- seek cost reduction trough economies of scale

- provide uniform service to global consumers

- monitor and respond to global competitiors

- take advantage of media with cross-national reach

1. Vertical Differentiation

     -Centralization

     - Decentralization

2. Horizontal Differentiation (Organigramme!)

      - International Division

      - Area Divisions

      - Worldwiide Product Diviions

      - Global Matrix

Centralization

+ HC controls activities worldwide

+ global integration of MNEs

+ Avoids duplication of activities

--> the larger the financial cost the riskier the anticipated (voraussichtlich) result the more HC decision

- top down decision: - ignores subsidiary managers intimate (Vertrauen) knowldge of host country

Decentralization

+ Increases motivation

+ greater flexibility (rapid response)

+ closer to the customer

+ MNE have local responsiveness

- bottom up decision: - autonomous subsidiary managers ignore the big picture knowledge of HC managers

=Standardization

meaning: coordination of the firms value chain activities across countries to a chieve worldwide efficiency, synergy

- cost reduction trough economy of scale

- cost efficient

- uniform service = centralize their creation and delivery

- bc of centralized suppliers --> economy of scale

meaning: mngt of the firms value chain activities on a country by country basis to address diverse opportunities & risks

- raw material / know how = competitive advantage

- products meet diverse cross-national needs

- outdo (übertreffen) local rivals

- establish local operations to attain (erlangen) local status

- leveraging competencies in new markets

- realization of localization and cost economies

- transfer of knowledge in the global web of operations

Step 1: Motivation Check

Step 2: Readiness-Check

Step3: Market Selection & Entry check

1. Drivers (What compels (zwingen) us to go international?)

2. Benefits (what do we hope to gain?)

3. Synergy (how will this move help us create synergies with other parts of our operations?)

--> key employees should possess the motivation and commitment

1. Proactive Drivers (PULL):

      - Economies of Scale & Scope, Growth opportunities, Favorable Resource Availability, Government incentives

2. Reactive Drivers (PUSH): condition that are outside the company & help to internationalize

      - Internationalization of customers and competitors, Trade Barriers, Legal Rules and Restrictions

1. Revenues

2. Contribution Margin

3. Relative Market Share

Negative slope = early internationalizers

positive slope = mid-stage internationalizers

negative slope = high internationalized firms

before going IB managrs examine their organization to determine the degree to which has the motvation, resources and skills necessary to engage in IB successfully.

1. Company Readiness (are we ready for int. operations - in general or to specific markets)?

2. Market Readiness (are there markets that are ready to receive out product and service)?

3. Product Readiness (is the product we have i mind ready to be sold int. in gnerall or specific arkets outside home market)?

major problem when going int: BARRIERS:

- lack of knowledge about foreign markets (work abroad, study abroad)

- Lack of resources (cost intensive)

- Lackf of networks ( supply/customer networks)

- customer characteristics (purchasing power, demographics)

- Competitive positioning of focal brand (USP, what are we better at than competitors)

- Competition (potential reaction to market entrants)

- Pricing ( penetration (low price) vs. skimming pricing (high price for early adopters and then decrease it gradually)

- channel effort and productivitiy (incentives offerd to distribution intermediaries)

- customer receptivity (Empfänglichkeit): (promotional effort directed to customers)

1. Target: WHICH market

2. Pacing (Tempo): WHEN

3. Scale: HOW (massive or low scale)

- politically stable

- free market systems

- relatively low inflation rates

- low private sector dept

- when the product in question is not widely available yet

1. what do we hope to gain (sales, following key customers, challenging competitors)

2. is Int. expansion consistent with other firm goals (mission and business plan)

3. What demands will internationalization place on firms resouces? (sufficient production ,marketing capacity)

4. What is the basis of the firms coptetitive advantage (R&D, cost-effective, skullful marketing, distribution)

- sell well in the home market

- unique features which are appealing for foreign custeroms

- hard to copy

- doesnt exist in the new market

- address a new or emergent need abroad

--> to make sure the market is ready ask locals or intermediaries in the target market

Exporting  = based on the home market

FDI

trade off: growth opportunities vs. risk

-growth rate of middle class (equal distribution!)

- market liberalization

- modernization

1. gradual elimination (till a few are left)

2. Indexing and Ranking (overall attractiveness)