4: Organisational Environments Flashcards
Cyclic strategic model
Decide mission - strategy - structure- management practice - mission achievement - international strategy - internationalisation drivers - geographic advantages - mode of entry - market selection
Strategy types
Defenders - No, product market focus.
Prospectors – search continually for new markets.
Analyses – seek flexibility and stability.
Reactors – no long-term goals or strategies
Strategic alternatives in global industries
Broad line global competition- Compete worldwide in full productline
Global focus – compete in particular segment worldwide
National focus – focus on national market differences to outcompete global firms
Protected niche – seek out governments who exclude global competitors
Approaches to international management
Ethnocentric – same culture an overseas country to home country
Poly centric – different subsidiaries in each country business done in, host country managers recruited
Geocentric – recruiting most suitable people regardless of nationality
Radio centric – use manages from various regions within geographic regions of business
Entry strategies
Exporting-Direct: Firm produces domestically and sells goods in foreign markets By sales branches overseas using our own salesforce/foreign agents.Indirect: Using export management companies
Licensing-provides foreign partner with necessary means to manufacture and sell its products using licensors brand name in target country for annual license. This takes advantage of lower transport costs, labor, raw materials.
Franchising- provide specialised equipment/services to franchisee and at times fund start up costs. franchisee pays annual fee.
Contract manufacturing
IJV-Use joint production and sales distribution networks to generate increased revenue and profits. IJV = business jointly owned and operated by 2 or more firms to penetrate foreign markets, split profits, share risk. Local partner and equity contract required. Involved establishment of seperate legal entity.
Fully owned subsidiaries: mergers, acquisitions. Domestic companies enter foreign markets by merging/acquiring well-established firms overseas. strengths: more competitive. Risky bc lots of capital needed to acquire.
Employee participation in organisation decision-making
Centralise – low participation, US, UK, China, Mexico
Consultative – moderate participation, manages actively seek employee involvement and input, Japan
Collaborative – high participation, manages work closely with employees to seek consensus on decisions, Germany
Centralised structures
Advantages – heightened control, consistency, good communication, quality control
Disadvantages – slow to deliver Talyne, bureaucratic, not aligned tightly to business strategy
Decentralised
Advantages: Close are aligned to service delivery, better relationships, different HR career path’s
Disadvantages: lack of influence on consistency and quality control, tension between centre and service providers, communication problems
Cultural web
Rituals – things that highlight what is important in an organisation, induction programs, Christmas party
Stories – successes, failures, leaders, villains. Told by members to each other
Symbols – logos, offices, cars, jargon. Reflect type of culture with senior executives – job titles, reward systems
Power structure – implant course lunches, who makes decisions, PDI
Organisation structure – reporting lines, hi Rocky, why work flows through business
Control systems – processes that monitor what is going on, rulebooks
*paradigm- pattern or model of culture
