GlossaryL

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Key Points Definitions Examples

1. Lag Strategy

Lag strategy refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand

PRAN-RFLThey first observed the market and demand conditions, then they had added logistics and IMC support to boost up the sale or market share.

2. Late Mover Advantages

The advantage that a company has when it is the last to introduce a new product, service, or technology, because it can learn from developments that have taken place, or from what others have done.

Like Banglalink and GP had over its competitor Teletalk. 3G and 3.5 G

3. Late mover disadvantag

es

Handicap that late entrants to a market suffer.

Loss of market share. Like: RC Cola and Pran Cola have a very few of market shares than

Coke and Pepsi. 4. Law of one

priceThe theory that the price of a given security, commodity or asset will have the same price when exchange rates are taken into consideration. 

Mostly happen typically in RMG sectors all over the world.

5. Lead market

Lead Market is a term used in innovation theory and denotes a country or region, which pioneers the successful adoption of an innovative design or product.

USA in terms of having the Drone in countries Defense sector.

6. Lead strategy

Collecting foreign currency receivables early when a foreign currency is expected to depreciate, and paying foreign currency payables before they are due when a currency is expected to appreciate

Practiced all over the world to have competitive advantage.

7. Lean production

systems

Lean production is a systematic method for the elimination of waste within a manufacturing system.

It’s a Japanese approach to cut out waste and ensuring quality. Like Jaguar follows this technique.

8. Learning effects

It’s the process by which education increases productivity and results in higher wages.

First observed by the 19th century German psychologist Hermann Ebbinghaus investig

ating the difficulty of memorizing varying numbers of verbal stimuli. 

9. Legal risk Legal risk is the risk arising from failure to comply with statutory or regulatory obligations

In Japan, to conduct business companies must have to follow and comply govt. rules.

10. Legal system

Legal systems are the systems of civil law, common law and religious law. Each country often develops variations on each system and incorporates many other features into the system.

Every country has a law, like Japan it is very difficult to conduct business due to high govt. restrictions because they want to encourage their own manufacturers.

11. Leontief paradox

Leontief's paradox in economics is that the country with the world's highest capital-per worker has a lower capital/labor ratio in exports than in imports. 

US—the most capital abundant country in the world by any criterion—exported labor-intensive commodities and imported capital- intensive commodities. This result has come to be known as the

Leontief Paradox. 12. Letter of

creditAn LC is a commitment by a bank on behalf of the importer (foreign buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stated in the LC have been met, as evidenced by the presentation of specified documents.

Samia Telecom ( One of the largest mobile parts accessories ) had an agreement with City Bank Ltd. to work as their trustee while importing from China.

13. Licensing Licensor grants the rights to licensee to use its intangible property at a royalty fee

KFC & Transom Group

14. Licensing agreement

A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. In a typical licensing agreement, the licensor grants the licensee the right to produce and sell goods, apply a brand name or trademark, or use patented technology owned by the licensor.

Akij Tobacco – Japan Tobacco International ( Recently signed up ) Basically, JTI will use all the distribution channels of Akij.

15. Local content

requirement

Local content requirements (LCRs) are regulations that specify a defined proportion of a final good be produced within a specific jurisdiction.

In 2009, the Canadian province of Ontario passed the Green Energy and Green Economy Act, aiming to expand the renewable energy

sector and create green jobs.

16. Localization strategy

The practice of adjusting a product's functional properties and characteristics to accommodate the language, cultural, political and legal differences of a foreign market or country.

McDonalds pursue different strategies while having their business typically in Asia and Europe.

17. Location economies

In business, the economics of location is the study of strategies used by firms in a monopolistically competitive environment in determining where to locate.

Honda established their manufacturing at India due to low cost of labor.

18. Location specific

advantages

The ability of an individual, company, or economy to conduct an activity better than any other for reasons related to location.

Both Intel and Apple company have their manufacturing at China due to expertise availability.

19. Logistics The planning, execution, and control of the movement / placement of goods and / or people, and the related supporting activities, all within a system designed to achieve specific objectives.

Orion group and Toma group have the biggest Logistics support of their own. That’s why they are able to handle big projects.