BASIC STRUCTURE Flashcards
A structure for new
entrepreneurial firms in which the employees
tend to be generalists and jacks-of-all-trades.
Simple structure:
An organizational
structure in which employees tend to be
specialists in the business functions important to
that industry, such as manufacturing, sales, or
finance.
Functional structure:
An organizational
structure in which employees tend to be
functional specialists organized according to
product/market distinctions.
Divisional structure:
An assemblage of
legally independent firms (subsidiaries)
operating under one corporate umbrella but
controlled through the subsidiaries’ boards of
directors.
Conglomerate structure:
functional and product forms
are combined simultaneously at the same level
of the organization
Matrix Structure:
These
are initially used when a new product line is
being introduced.
Temporary cross-functional task forces:
If the
cross-functional task forces become more
permanent, the project manager becomes a
product or brand manager and a second phase
begins
Product/brand management:
The third and final phase of
matrix development involves a true dual
authority structure.
Mature matrix:
An organization (virtual
organization) that outsources most of its
business functions.
Network structure:
An organizational
structure that is composed of a series of project
groups or collaborations linked by changing
nonhierarchical, cobweb-like networks.
Virtual organization:
A
structure composed of cells (self-managing
teams, autonomous business units, etc.) that can
operate alone but can interact with other cells to
produce a more potent and competent business
mechanism.
Cellular/modular organization structure:
is the radical redesign of
business processes to achieve major gains in
cost, service, or time.
Reengineering:
A process by which
strategies and policies are put into action
through the development of programs, budgets,
and procedures.
Strategy implementation:
A statistically-based program
developed to identify and improve a poorly
performing process.
Six Sigma:
The process of Six Sigma encompasses five
steps.
- Define a process where results are poorer than
average. - Measure the process to determine the exact
current performance. - Analyze the information to pinpoint where
things are going wrong. - Improve the process and eliminate the error.
- Establish controls to prevent future defects
from occurring.
The design of individual tasks in an
attempt to make them more relevant to the
company and more motivating to the employee.
Job design:
Combining tasks to give a
worker more of the same type of duties to
perform
Job enlargement:
Moving workers through several
jobs to increase variety.
Job rotation:
Altering jobs by giving the
worker more autonomy and control over
activities.
Job enrichment:
An approach to job
design that is based on the belief that tasks can
be described in terms of certain objective
characteristics and that those characteristics
affect employee motivation.
Job characteristics model:
(MNC):
Multinational corporation
A
company that has significant assets and activities
in multiple countries.
Multinational corporation (MNC):
(each country’s industry is
essentially separate from the same industry in
other countries)
Multidomestic
(each country is a part of one worldwide
industry).
Global
According to Spulber in his book, Global
Competitive Strategy, the forces pushing for
standardization are:
Convergence in customer preferences
and income across target countries.
- Competition from successful global
products.
- Growing customer awareness of
international brands.
- Economies of scale.
- Falling trading costs across countries.
- Cultural exchange and business
interactions among countries.
The forces pushing for customization to local
markets are:
Persistent differences in customer
preferences.
- Persistent differences in customer
incomes.
- The need to build a local brand
reputation.
- Competition from successful, innovative
domestic companies.
- Variations in trading costs across
countries.
- Local regulatory requirements
These stages of international development
are:
Stage 1 (Domestic company):
Stage 2 (Domestic company with export
division):
Stage 3 (Primarily domestic company with
international division):
Stage 4 (Multinational corporation with multi
domestic emphasis):
Stage 5 (MNC with global emphasis):
What is the stages of international development
is The primarily
domestic company exports some of its products
through local dealers and distributors in the
foreign countries.
Stage 1 (Domestic company):
What is the stages of international development
is : Success in Stage 1 leads the company
to establish its own sales company with offices
in other countries to eliminate the middlemen
and to better control marketing.
Stage 2 (Domestic company with export
division):
What is the stages of international development
is Success in earlier
stages leads the company to establish
manufacturing facilities in addition to sales and
service offices in key countries.
Stage 3 (Primarily domestic company with
international division):
What is the stages of international development
is Now a full-fledged MNC,
the company increases its investments in other
countries.
Stage 4 (Multinational corporation with multi
domestic emphasis):
What is the stages of international development
is The
most successful MNCs move into a fifth stage in
which they have worldwide human resources,
R&D, and financing strategies.
Stage 5 (MNC with global emphasis):
A structure of a
multinational corporation that enables the
company to introduce and manage a similar line
of products around the world.
Product-group structure:
A structure that
allows a multinational corporation to tailor
products to regional differences and to achieve
regional coordination.
Geographic-area structure:
