Business Policies

Establishment of a new wholly owned subsidiary.

International strategy through which the firm seeks to achieve both global efficiency and local responsiveness.

Strategy through which the firm offers products across country markets with competitive strategy being dictated by the home office.

decisions are decentralized to the strategic business unit in each country to allow them to tailor products to the local market.

strategy through which the firm sells its goods/services outside its domestic market.

Three international corporate-level strategies

strategy through which a firm changes its set of businesses or its financial structure.

strategy through which two firms agree to integrate their operations on a relatiively coequal basis.

strategy through which one firm buys 100% interest in another firm with intent of making it a subsidiary business for its portfolio.

Type of acquisition wherein the target firm does not solicit the acquiring firms bid

Exists when the value created by business units working together exceeds the value they create working independently.

Cost savings realized through improved allocations of financial resources based on investments inside/outside the firm.

exists when a firm is able to sell its products above the competitive level OR to reduce thecosts of its activities below the competitors. l

exists when 2 or more diversified firms simultaneously compete in the same product areas or geographical markets.

exists when a company produces its own inputs or owns its own source of output distribution.

company produces its own inputs.

company owns its own source of output distribution.

complex set of resources and capabilities that link different businesses, primarily through managerial and tech knowledge and experience.

cost savings that a firm creates by sharing its resources and capabilities or transferring core-competencie(s) to another business.

competitive advantages are moderately shielded from imitation and imitation is moderatelycostly.

competitive advantages are not shielded from imitation and imitation is often rapid andinexpensive.

competitive advantages are shielded from imitation commonly for long periods of time and imitation is costly.

Firms goods or services meet or exceed customers expectations.

firm that responds to the first movers competitive actions typically through imitation.

firm that responds to a competitive action long after the first movers action and second movers response.

firm that takes an initial competitive action in order to build or defend its competitive advantage or improve market position.

action firm takes to build or defend its competitive advantages or improve its market position.

action the firm takes to counter the effects of a competitors competitive action.

market based move that involves a significant commitment of organizational resources and is difficult to implement and reverse.

action firm takes to build or defend its competitive advantages or improve its market position.

market based move that involves a significant commitment of organizational resources and is difficult to implement and reverse.

market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse.

the number of markets that two firms are jointly involved and the degree of importance of the individual markets to each.

extent to which the firms resources are comparable to a competitors in terms of both type and amount.

total set of actions and responses taken by all firms competing within a market.

ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.