3. Structure of international firm

Question 1

Organizational structure

and international

Answer 1

rules for task allocation and coordination of activites

-> how does international dimension of mng cover internationalization

Question 2

Three organizational structures

Answer 2

1. Unspecific structure
2. Differentiated structure: additional for int business
3. Integrated structure: separation of national and international business activites

Question 3

Unspecific org structure

Answer 3

International acitivites not in org structure

• simple -> dont change structure
• low complexity
• Report directly to CEO

Question 4

Differentiated org structure

Answer 4

• domestic and foreign operations are organizationally strictly separated
  from each other (differentiated/ segregated)
• One division for int business (develops form export deparment)
• In charge of int sales and existing production in foreign subsidaries

1. Functional
2. Business area
   3- Regional
   Ex. Deutche telecom

Question 5

PRO /CON Unspecific org structure

Answer 5

PRO

• Low costs of adaption, fast adaption,
• early knowledge transfer, preparation to engage more int activites

CON
- problems when many subsidaries -> work overload
- risk of autonomonous projects
- no knowledge transfor between subsidaries
- rivality
low power

Question 6

PRO / CON Differentiated org structure

Answer 6

PRO

• clear allocation competencies between domestic and international
• short coordination process for int decisions
• quick response market demands

CON

• risk of isolation
• rivalty, conflicts
• risk of duplication
• little knowledge transfere

Question 7

Integrated org structure

Answer 7

• no orgaizational separation

1. glocal functional
2. global product
3. global regional

Question 8

Global functional structure

Answer 8

• integration of foreign activites of functional areas
• functional areas world wide line responsibility
• functional coordination

Question 9

Global product structure

Answer 9

• product diversity

- Selling to different people with different needs

Question 10

Global regional structure

Answer 10

• Coca Cola,
  different markets with different customers needs in different areas
• Range of products

Question 11

PRO CON functional structure

Answer 11

PRO

• combining domestic and int competences
• good overview
• low risk of duplicationa
• functions forces to work together

CON

• higher centralizationa of decision making->lower decision-making autonomy
• wook overload functional managers

Question 12

Multidimensional structures

Answer 12

• differentiated product range + different countries
• cross country standardization
  Ex. cunsultant firms

PRO

• concideration of two grouping criteria
• communication flow and creative potential
• must coordinate and optimize allocation of resources

CON

• conflict potential
• time consuming
• high communicationa and conflict handling
• many meetings is costly