Chapter 14 – Global Strategies
14.1
A global strategy is a multinational strategy in which separate strategies are developed for different
countries.
14.2
Among the eight motivations for global strategies is to cross-subsidize businesses and to obtain scale
economies.
14.3
Accessing low-cost labor and materials is not a motivation for global strategies.
14.4
Strong motivations for a standardized global brand and position are media spillover and cross-country
customer travel.
14.5
A strategic alliance is a collaboration leveraging the strengths of two or more organizations to achieve
strategic goals.
14.6
One of the benefits of a strategic alliance is that it can help a firm overcome trade barriers. Another is that it
can compensate for the absence of or weakness in any of the needed key success factors for a market.
14.7
The key to success of strategic alliances is to maintain strategic value for each of the participants.
14.8
Wal-Mart’s success in Germany shows the power of exporting a successful business model.
14.9
The eight motivations for global strategies are: to cross-subsidize, to dodge trade barriers, to access low
cost labor/materials, to create global associations, to obtain global innovation, _________, __________,
and ___________.
14.10
A frequently unforeseen consequence of global expansion is that healthy markets, especially the home
market, are put at risk by the diversion of resources.
14.11
Four conditions under which organizations expanded globally and survived are: a repeatable formula for
expansion, customer differentiation that travels, _____________, and _____________.
14.12
An organization should enter countries in a sequential order.
14.13
Standardizing brand strategy leads to global market leadership.
14.14
The Ford Galaxy was a good example of the advantage of a common strategy across Europe.