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Organizing and Innovating in the MNE Exam Bank Solution Manual Already Passed

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Organizing and Innovating in the MNE Exam Bank Solution Manual Already Passed Multinational enterprises operate in many different local contexts, and their ability to make connections between local contexts is - Answers essential to achieving competitive advantage in global strategies. Realiz...

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  • October 24, 2024
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Organizing and Innovating in the MNE Exam Bank Solution Manual Already Passed

Multinational enterprises operate in many different local contexts, and their ability to make connections
between local contexts is - Answers essential to achieving competitive advantage in global strategies.



Realizing such competitive advantages requires complex organizations that have to achieve many things
simultaneously.

Integration-responsiveness framework. - Answers It is a framework with which the organizational
structures of multinational enterprises can be assess. It deals simultaneously with pressures for global
integration and pressures for local responsiveness.

pressures for global integration - Answers driven by agglomeration benefits such as economies of scale
and global innovation

pressures for local responsiveness - Answers are driven by different consumer preferences, and formal
and informal institutions of the host country.

Global integration and local responsiveness are - Answers not necessarily incompatible



The integration-responsiveness framework is thus not a scale, but a matrix with four strategies.

Integration-responsiveness framework = matrix with four strategies: - Answers Home replication
strategy

Localization strategy

Global standardization strategy

Transnational strategy

for each strategy of the Integration-responsiveness framework there are appropriate organizational
structures that approximately match a strategic choices: - Answers Home replication strategy (with
international division structure);



Localization strategy (with geographic area strategy structure);



Global standardization strategy (with global product division structure);

, Transnational strategy (with global matrix structure).

A home replication strategy - Answers often referred to as 'international' strategy



is based on the replication of home country-based competencies such as production scales, distribution
efficiencies and brand positioning.



The operation abroad is thus built to resemble the home operation.



strategy best be applied when pressures for global integration and local responsiveness are low.



relatively easy to implement

may be used by firms who expand abroad for the first time.



However, the home replication strategy does suffer from lack of local responsiveness, which may result
in a loss of foreign customers as a result of foreign customer alienation.

When following a home replication strategy, an international division structure is typically the best -
Answers organizational structure set up when firms initially venture abroad.

It bundles all international activities in one unit



However, this structure often leads to two problems:



- an international division serves as a 'silo' whose activities are not coordinated with the rest of the firm
that focuses on domestic activities

(consequently, this structure is mostly used by firms where international sales = only a small share of
their revenues).



- foreign subsidiary managers are not given sufficient voice relative to the heads of domestic divisions.

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