PESTLE ✔✔Political, Economic, Social, Technological, Legal, Environmental
Globalization ✔✔web of interconnectedness or the movement of people
... [Show More] (labor) and knowledge
(technology) across borders
Foreign Direct Investment (FDI) ✔✔the investment of foreign assets into domestic structures,
equipment, and organizations
Global Remittances ✔✔Monies sent back home by migrants working in foreign countries.
Diaspora ✔✔A mass migration of a group from its homeland to multiple destinations
Demographic Dichotomy ✔✔Workforce in emerging countries becoming disproportionately
young, but in developing countries, aging rapidly.
Reverse Innovation ✔✔Innovations created for or by emerging-economy markets and then
imported to developed-economy markets.
hyperconnectivity ✔✔increasing digital interconnection of people—and things—anytime and
anyplace
pushes and pulls ✔✔Organizations have been pushed toward globalization in reaction to changes
in the business environment. They have been pulled toward change through the promise of
achieving greater organizational value through globalization.
globalization push factors ✔✔A need for new markets; Increased cost pressures and competition;
Shortfalls in natural resources and talent supply; Government policies; Trade agreements; A
globalized supply chain
tax inversion, aka expatriation ✔✔seeking to avoid higher corporation taxation rates by acquiring
foreign-based competitors and then moving headquarters to their acquisition's home base
globalization pull factors ✔✔Greater strategic control; Government policies that promote outward
foreign investment; Trade agreements
Turnkey Operation ✔✔An existing facility and its operations are acquired and run by the purchaser
without major changes
Greenfield Operation ✔✔Building a new operation from the ground up
Brownfield Operation ✔✔Repurposing an existing disused facility
Perlmutter's four orientations for multinational corporations ✔✔Ethnocentric, Polycentric,
Regiocentric, Geocentric
Ethnocentric ✔✔Headquarters maintains tight control over subsidiaries, who are expected to
follow strategic pattern, values, policies, and practices expressed by headquarters; "one best way"
Polycentric ✔✔Subsidiaries are allowed a large measure of independence as long as they are
profitable; "many best ways"
Regiocentric ✔✔Subsidiaries are grouped into regions (Such as North America, Europe and Asia
Pacific) Communication and coordination are high within the region but not as high between the
region and headquarters.
Geocentric ✔✔Subsidiaries are neither satellites taking orders nor independent bodies setting their
own course. Headquarters and subsidiaries are participants in a network, each contributing to its
unique expertise; "a team way"
global integration and local responsiveness ✔✔Organizational continuum strategies to meet the
needs of customers and expand their growth opportunities.
global integration ✔✔Emphasizes consistency of approach, standardization of processes, and a
common corporate culture across global operations
local responsiveness ✔✔Emphasizes adapting to the needs of local markets and allows
subsidiaries to develop unique products, structures, and systems.
Market, Cost, Governmental, Competitive ✔✔Four drivers that determine an organization's choice
of whether to emphasize global integration or local responsiveness
Assignees ✔✔Employees who work outside their home countries.
Global, Transnational, International, Mulitdomestic ✔✔Matrix that describes ways in which an
organization can combine GI and LR elements into a single globalization strategy
International Strategy ✔✔strategy that is low in global integration - in that there is little pressure
to increase efficiency - and also low in local responsiveness - in that there is little advantage in
tailoring products or services to individual foreign markets; suits organizations with strong global
brand identity or very specialized products or services that enjoy weak local competition
Multidomestic Strategy ✔✔organizations with subsidiaries in multiple countries that operate with
a fair degree of independence from each other and from headquarters, which remains in the home
country; decentralized federations; portfolio of independent businesses; low in GI and high in LR
Global Strategy ✔✔high in GI but low on the LR scale; the headquarters (which may or may not
be in the originating country) maintains a strong relationship with each subsidiary, integrating
operations to take advantage of conditions in subsidiary markets, such as inexpensive labor or
materials, and standardizing its products or services [Show Less]