MGT 302 FINAL EXAM STUDY GUIDE
Tacit Knowledge – Information that is intuitive and difficult to articulate or codify in writing; Ex.
swimming or
... [Show More] riding a bike (you would want to show a person v. just tell them if they’ve never done
these things before)
• Can be gained through personal experience or interaction
• Shared knowledge might be dispersed throughout the company
Codified Knowledge – Information that can be easily captured in the form of text, tables, or diagrams;
Ex. Jamba Juice recipes, procedures, etc. on how to make smoothies
• Product specifications, scientific formulas and computer programs are examples of codified
knowledge
First Mover Advantages versus Pioneering Costs
First Mover Advantages: this is the advantage gained by the first business/company to enter into a new
market, can achieve huge market potential and growth as a result
Pioneering Costs: costs the firm has to bear that a later entrant can avoid; can arise when the business
system in a foreign country is so different from that in a firms home market that the enterprise has to
devote considerable time efforts and expense to learning the rules of the game.)
Value-to-Weight Ratio
A high value-to-weight ratio means that the product is expensive and doesn’t weigh a lot so the cost to
ship the products is low. This means that it would make more sense to produce in one place and ship
from there. A low value-to-weight ratio are heavy inexpensive items like paint and certain bulk
chemicals so when they are shipped long distances it can get expensive. It would be more cost efficient
to produce these items in multiple markets.
Types of Intellectual Property
• Patents - consists of a set of exclusive rights granted by a sovereign state to an inventor or their
assignee for a limited period of time in exchange for the public disclosure of an invention.The
procedure for granting patents, the requirements placed on the patentee, and the extent of the
exclusive rights vary widely between countries according to national laws and international
agreements.
• Copyrights - legal concept, enacted by most governments, giving the creator of an original
work exclusive rights to it, usually for a limited time. Generally, it is "the right to copy", but
also gives the copyright holder the right to be credited for the work, to determine who may
adapt the work to other forms, who may perform the work, who may financially benefit from it,
and other related rights
• Trademarks - distinctive sign or indicator used by an individual, business organization, or
other legal entity to identify that the products or services to consumers with which the
trademark appears originate from a unique source, designated for a specific market, and is used
to distinguish its products or services from those of other entities.
• Industrial Designs - rights that make exclusive the visual design of objects that are not purely
utilitarian. A design patent would also be considered under this category. An industrial design
consists of the creation of a shape, configuration or composition of pattern or color, or
combination of pattern and color in three dimensional form containing aesthetic value
• Trade Secrets - formula, practice, process, design, instrument, pattern, or compilation of
information which is not generally known or reasonably ascertainable, by which a business can
obtain an economic advantage over competitors or customers
Intellectual Property Rights
form of legal entitlement which allows its holder to control the use of certain intangible ideas and
expressions. The term intellectual property reflects the idea that once established, such entitlements are
generally treated by courts, especially in common law jurisdictions, as if they were tangible property.
The most common forms of intellectual property include patents, copyrights, trademarks, and trade
secrets.
Externalities
knowledge ‘spillovers’- general knowledge related to a specific industry or idea; comes from sheer
concentration of intellectual talent, and a network of informal contacts that allows firms to benefit from
each other’s knowledge generation.
Basic Entry Decisions:
• Which foreign markets – Choose markets close to home and easily moved to
• Timing the entry – First mover advantage for new entrants can lead to brand becoming
synonymous with the solution of a problem; Ex. Apple iPod is synonymous with mp3
players/portable music problem in the mind of the consumers
o Switching costs for customers implemented by first mover can further solidify customer
use/base
o First mover mistakes can end up benefiting later entrants
• Scale of entry – Do we want to enter a foreign market on a very large scale? (Show up and
make a large statement) Or should we show up slowly? Resources may determine this for
you
Strategic Commitments
Decision that has a long-term impact and is difficult to reverse such as entering a foreign market on a
large scale; can have important influence on the nature of competition in a market; limits a company’s
strategic flexibility.
Advantages and disadvantages of all the international entry modes
EXPORTING – It refers to selling goods and services produced in home country to other markets.
The seller of such goods and services is referred to as an “exporter” who is based in the country of
export whereas the overseas based buyer is referred to as an “importer”.
Advantageous:
1) Avoids the often substantial costs of establishing manufacturing operation the host country.
2) Exporting may help a firm achieve experience curve and location economies.
For example: By manufacturing the product in a centralised location and exporting it to other national
markets, the firm may realize substantial scale economies from its global sales volume. This is how
Sony came to dominate the global TB market, how Matsushita came to dominate the VCR market,
how many Japanese automakers made in roads to in the U.S. market, and how South Korean firms
such as Samsun [Show Less]