The international context of strategy refers to, according to De Wit & Meyer (2010), the issue of international configuration. What are the two main components of this issue?
Dimensions and levels of globalization
Globalization of economies and businesses
International composition and management
International scope and distribution.
Global can be simply used as a geographic term, according to De Wit & Meyer (2010). When it only describes the spatial dimension, which of the following elements of globalization is referred to?
Worldwide scope
Worldwide similarity
Worldwide integration
Worldwide convergence.
Which of the following statements about McDonalds is NOT true, according to De Wit & Meyer (2010)?
McDonald’s is only relatively global, because operations are not very tightly linked around the world
McDonald’s is only relatively global, because of the predominance of the home country
McDonald’s is only relatively global, because it does not have a completely global scope
All of the above are true.
De Wit & Meyer (2010) discuss the issue of international composition, which deals with the question of where the firm wants to have a certain level of involvement. In what parts can this issue be further subdivided?
Standardization, coordination, and centralization
International scope and distribution
Dimensions and levels
International range and influence.
De Wit & Meyer (2010) state that a firm needs to have international integration mechanisms to facilitate the realization of cross-border synergies. Which of the following is NOT listed as one of these mechanisms?
Standardization
Integration
Coordination
Centralization.
Barlett and Ghoshal (1989, in De Wit and Meyer, 2010) distinguish four generic organizational models for international firms. Decide which type fits the description: multi-domestic.
Decentralized federation
Coordinated federation
Centralized hub
Integrated network.
Barlett and Ghoshal (1989) distinguish four generic organizational models for international firms. Decide which type fits the description: global.
Decentralized federation
Coordinated federation
Centralized hub
Integrated network.
Which main paradox is put forward for the international context, by De Wit & Meyer (2010)?
Competition vs. cooperation
Leveraging vs. integrating
Synergy vs. responsiveness
Globalization vs. localization.
De Wit & Meyer (2010) identify three different categories of cross-border synergies. Which of the following is NOT put forward by the authors?
Aligning positions
Linking capabilities
Integrating activities
Leveraging resources.
Which sub-category of cross-border synergies can be linked to a national competitive advantage, as put forward by Porter (‘The competitive advantage of nations’, Reading 10.3)?
Reaping scale advantages
Dealing with cross-border competition
Reaping location advantages
Achieving resource reallocation.
Discussing the demand for local responsiveness, De Wit & Meyer (2010) put forward some important differences between countries. Which of the following is NOT listed by the authors?
Differences in substitutes
Differences in media structure
Differences in infrastructure
Differences in demography.
Wal-Mart (a food retailer) and Ikea (a furniture retailer) try to apply the same retailing formula in all markets. On the basis of this characteristic, Wal-Mart and Ikea are often classified as global companies, even though they are not actively present in, for instance, Latin American markets. Given this information, on what definition of ‘global’ can Wal-Mart and Ikea be classified as global firms, according to De Wit & Meyer (2010)?
Global as international scope
Global as international integration
Global as international similarity
Global as international coordination.
MTV was the first 24-hour music television network in the world, with a global reach. Instead of sticking to a globally standardized product, based on a belief in global convergence, MTV’s head of international activities, Mr. Roedy, has acknowledged the need to go local. He wants to adapt MTV’s programming to meet national tastes. Mr. Roedy is contemplating partially-autonomous regional channels in the local language, to counter MTV’s crumbling market share. According to De Wit & Meyer (2010), to which perspective has Mr. Roedy, at least partially, converted?
The local convergence perspective
The national divergence perspective
The global differentiation perspective
The international diversity perspective.
MTV was the first 24-hour music television network in the world. MTV Latino is the Spanish-language affiliate, broadcasting two region-specific versions of MTV for the Latin American market, while MTV Europe produces three English-language variations, for different parts of Europe. According to De Wit & Meyer (2010), what would a supporter, of the global convergence perspective, probably say about this aspect of MTV’s international strategy?
‘Think global, act local’ should be MTV’s policy; therefore, localizing MTV to regional tastes is a very suitable strategy to follow
If these international variations are costly, MTV should move towards as many globally standardized elements as possible, as quickly as it can
Since global convergence in culturally sensitive industries, such as broadcasting, will take decades to take place, having region-specific versions seems quite appropriate
As a global company, MTV should be able to broadcast in all local languages, not only Spanish and English.
“In its expansion […], IKEA has not been culturally insensitive, but rather guided by the philosophy to keep it simple […]. In practice this has lead to a ‘standardize-unless’ approach to each national market – first try it the global way and only when it doesn’t work, look for an intelligent local solution”. According to De Wit & Meyer (2010), this statement is an expression propagating one of the following perspectives:
The local convergence perspective
The global differentiation perspective
The global convergence perspective
The international diversity perspective.
Based on De Wit & Meyer (2010), judge whether the following statements are true or false:
I Technology and communication are major drivers, in the international diversity perspective. II The organizational preference, in the international diversity perspective, is: decentralize unless.