Chapter 5- Managing Across Cultures – Flashcards
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Four Strategic predispositions
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Ethnocentric, Polycentric, Regiocentric, and geocentric -successful MNCs use a mix of these predispositions
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Ethnocentric Predispositions
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A nationalistic philosophy that allows values and interests of the parent company to guide strategic decisions
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Polycentric Predispositions
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Strategic decisions are tailored to suit the cultures of the countries where the MNC operates
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Regiocentric Predispositions
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Leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis
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Geocentric Predisposition
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Try to integrate a global systems approach to decision making
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Globalization Imperative
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A belief that one worldwide approach to doing business is the key to both efficiency and effectiveness
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Three major challenges for regional markets
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1) MNC must stay abreast of local market conditions 2) MNC must know the strengths and weaknesses of its subsidiaries so that it can provide assistance with local demands 3) Must give the subsidiary more autonomy so that it can respond to changes in local demands
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Parochialism
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The tendency to view the world through one's own eyes and perspectives
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Simplification
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The process of exhibiting the same orientation toward different cultural groups
