Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Hofstede's Cultural Dimensions – Initially 4 but now 6
dimensions that differentiate one culture from another
...
Power Distance index–
describes how a culture responds to people who have
power and treat those who don’t
...
Individualism vs
Collectivism– strength of ties people have with others in
their community (high – private, low- more interest in
others well being), 3
...
4
...
Pragmatic vs Normative – how they value
long standing tradition (high – respect for tradition,
elders, education ect, low – more interested in equality,
creativity) 6
...
Exporting – make
your product at home and ship it abroad
...

Limitations: once it’s ship it, control is lost
...
Strengths: local knowledge, less financial risk as
the franchisee incurs start up costs
...
Strategic alliance – two companies
from different countries work together (do not give any
money)
...

Limitations: may be giving too much intellectual capital
away to a rival
...
Strengths:
cutting financial risk, using each other’s competencies to
help each other out
...
Direct investment – put money in and do
100%
...
Limitations: 100% risk
...

Case study: (Kumar and Chandra 2001) Xerox started actively developing modern benchmarking techniques in 1979
when it found that canon were selling their photocopiers for the same price and Xerox were making them
...
They
found 400 best-in-class features and designed 80% of them into their new models
...
After implementing
their finding, the plant had a 41% share of the $776 million US market for controllers
...
Ajelabi & Tang 2010 – found benchmarking against leading companies has resulted in significant
success for average organisation in improving their performance
...
Including the
type of customers served and the
types of products/services offered
*Internationalising the core strategy
through international expansion if
activities and through adaptation
...
Role
barriers to trade such as: import
tariffs, quotas and foreign ownership
rules, difference in tastes , laws,
language and behaviour
...

*Globalising the international
strategy by integrating the strategy
across countries
...

Globalisation dimensions – for each,
a multidomestic strategy seeks to
maximise worldwide performance by
maximising local competitive
advantage, revenure or profits
...

Yip 2003 – companies now assume
they should globalise unless they can
find a good reason not to
...

However the location of the industry’s
key markets will determine the
importance of the Internet due to the
country’s usage (Yip 2000)
...
In the
process, geographical distances and
time zone variations are maximised,
With the rise of non-japan Asia, Latin
America and Eastern Europe,
operating in jjust the ‘tria’ of North
America, Western Europe and Japan is
no longer sufficient
...


Ethics – Corporate Social Responsibility (CSR) –
is a businesses concern for society’s welfare
...
5% of pretax profits to different charitable
institutions
...

Stakeholder Theory – social responsibility is
giving attention to every stakeholder
...
Arguments against
CSR – (Friedman 1962) the main purpose of a
corporation is to make profit for their owners or
stakeholders
...
Davis 1973 states
that businesses are not equipped with the
expertise (social skills)
...
Arguments for:
(Carroll & Shabana 2010)
...

By the business polices itself with self-disciplined
standards, it will ward off government legislation
...
The public believes that, in
addition to pursuing profits, business should be
responsible to their stakeholders, even if it
sacrifices some profits (Bernstein 2000)

---