MG2005

Question 1

why and how international management and the study of organizations matter

Answer 1

• help understand the evolution of international organization.
• the driving forces of globalization
• variations within and between countries and ownership typers
  This knowledge is helpful because
• allows to adapt top chaning markets dynamics
• effectively manage international opperations
• understand cultural differences

Question 2

what are the driving forces in globalization

Answer 2

-technology break throughs
- changes in international competition
- organization change
- the rise and fall of empires
- the growth of super star firms

Question 3

what is globalization

Answer 3

it is the increasing interconnectedness and integration of economies, cultures and societies worldwide through technology, communication , migration and tradewha

Question 4

what are winners and what are losers in the global economy

Answer 4

Winners are those who adapt and thrive in response to the opportunities and challenges brought about by globalization, such as increased trade, technological advancements, and interconnected markets.

Losers, on the other hand, are those who struggle or fall behind because they fail to adapt to these changes, potentially losing out on opportunities for growth, competitiveness, and prosperity.

Question 5

what is the agency theory

Answer 5

A theoretical framework that examines the relationships between principals (owners) and the agents (managers) in organizations.

Question 6

What are the main assumptions of the agency theory

Answer 6

• owners seek profit maximazation
• managers may have conflicting interest and behave in a self- interested manner
• information asymmetry + moral hazards
• monitor managers to make sure their
  actions align with the owners interests

Question 7

what is the transaction cost theory

Answer 7

theory that analyzes the costs associated with transactions between firms such as :

• negotiating contracts
• monitoring performance
• opportunistic behaviour

Question 8

what are the agency theory common criticims

Answer 8

• oversimplification of the principal-agent relationship
• focus on short term financial gains
• neglect stakeholder interests
• failure to account for non-financial motivations

Question 9

explain oversimplification of the principal-agent relationship

Answer 9

the theory does this by primarly focusing on the aligment of interests between owners and managers, while ignoring the broader complexities of organizational dynamics. Factors like market positioning, innovation, strategic capabiliteis

Question 10

explain - focus on short term financial gain

Answer 10

by having a short terms focus on gains instead of a long term focus on long -term sustainability and ethical considerations, managers will prioritize immediate profits over the organizations long-term viability and ethical behavior.

Question 11

explain - neglect stakeholder interests

Answer 11

by overlooking their interest (employes, customers, the community) the theory may fail to consider the broader impact of managerial decisions on various stakeholders and societal welfare

Question 12

• failure to account for non-financial motivations

Answer 12

managers are driven by things like job satisfaction, reputation and personal values not money, which can affect their decisions and their actions in a company.

Question 13

what is the resource based view

Answer 13

here the firm emphasis on the significance of the firm’s unique resources and capabilities in achieving sustainable competitive advantages.

Question 14

what is the resource based view focus

Answer 14

find unique, rare and hard to imitate resource and capabilities that will help them maintain a competitive edge in the market

Question 15

RBV highlights the importance of

Answer 15

dynamic capabilities, core competencies,

Question 16

what is dynamic capabilites

Answer 16

the firms ability to seize, sense and transform resources and capabilites to use it to adapt to the changing environment of the marker

Question 17

what are core competencies

Answer 17

refers to the unique resources and capabilities that the firm has which make them different to others.

Question 18

advantage of RBV

Answer 18

help the firm, with their unique resources and capabilities, to achieving a sustainable competitive advantages.

Question 19

disadvantage of RBV

Answer 19

may not account for other factors such as: market dynamics, cultural differences, regulatory environments

Question 20

advantages of transaction cost approach

Answer 20

emphasises the importance of minimizing transactional cost in decision making proceses by considering factors like:

• asset specificity
• bounded rationality
• uncertainty
• opportunism

Question 21

disadvantage of transaction cost approach

Answer 21

may not focus on other factors like:

• cultural differences
• market dyanmics
• technological advancements
• political risks

Question 22

why do countries trade with each other

Answer 22

• comparative advantage
• risk diversification
• access to resources
• economies of scale

Question 23

why do MNEs exist

Answer 23

• to control trade and market imperfections.
• They do this by applying specific advantages in foreign markets, which allow them to have better control over their operations and resources (include advance techonlogies, access to capital or economies of scale)

Question 24

what is a generic strategy

Answer 24

an general approach that a company takes in order to gain a competitive advantage

Question 25

porter strategy which companies focus on :

Answer 25

cost advantage and differentation

Question 26

what is cost advantage

Answer 26

offers product at a lower cost than competitors to attract price sensitive customers and potentially higher profit margins.

Question 27

how do they implement cost advantage?

Answer 27

- steamline operations - minimize production cost to offer products at a lower cost - optimize the value chain

Question 28

what is differentiation?

Answer 28

it offers unique features and attributes that set the companies product and services apart from competitors

Question 29

how do they implement differentiation

Answer 29

- product innovation - superior quality - exceptinal customer service - brading strategies

Question 30

what are other alternative strategies for maintaining an international presence

Answer 30

- transnational strategy - international strategy - global standardisation strategy

Question 31

- transnational strategy

Answer 31

thinks globally act locally approach, where centralised value chain activities are spread globally to mitigate fixed cost and risks

Question 32

centralizing activities can help reduce fixed costs and risks because it lets companies:

Answer 32

- Save money by using resources more efficiently. - Spread out risks so if one area has a problem, it doesn't affect everything. - Keep things consistent and easier to manage, which lowers the chance of mistakes and problems. - Make decisions faster and better, which helps them adapt to changes and avoid risks more effectively.

Question 33

what is international strategy

Answer 33

focuses on local adaptations, emphazing decentralized decision-making and tailored competitive efforts to meet local market demands