Corporate Aspects of International Management Flashcards
What are the different types of International Organisational Structures?
- One Dimensional Structures
- Multi Dimensional Structures
What types of one-dimensional structures are there?
- ) Non-specific structures
- ) Differentiated structures
- ) Integrated (functional/product/regional) structures
How can a non-specific structure be characterised?
- direct reporting structure
- international activities are not visible in organisational
structure at early stage of international development
How can a differentiated structure be characterised?
How can it be organised?
- Seperation of domestic and international division
- international operations are centralised under an
“International Division” - first level under top management can be organised by
SBU/product, fuction, regions or customers
What are some advantages of differentiated structures?
- strict division of national & international activities
- flexibility in international decisions
- quick adaptation to different requirements in foreign
markets - bundling of knowledge/experience
What are some disadvantages of differentiated structures?
- double execution of tasks
- possible misunderstandings between national &
international management - difficult to establish single corporate culture
- lack of knowledge transfer between divisions
Briefly explain the structure of an integrated functional structure as well as some of its advantages?
Structure = level below top management structured by
functions (foreign and domestic)
- avoidance of double execution
- central leadership/clear responsibilities
- bundling of knowledge & experience
What are some possible disadvantages of an integrated functional structure?
- strong centralisation of decisions (motivation loss)
- strong standardisation
- cost rather than market oriented
Briefly explain the structure of an integrated product structure as well as some of its advantages?
Structure = level below top management structured by
product groups (foreign & domestic)
- increased autonomy (increased motivation)
- visibility of chances for product in international markets
What are some possible disadvantages of an integrated product structure?
- reduction of economies of scope
- seperate and inconsistent marketing activities
- lack of knowledge transfer between product divisions
Briefly explain the structure of an integrated regional structure as well as some of its advantages?
Structure = level below top management structured by
country groups (continents)
- ability to use local know-how
- flexibility to changes in regional environment
What are some possible disadvantages of an integrated regional structure?
- Double execution of similar functions
- “not invented here” - syndrome
- conflict due to competition among regions
What types of Multi dimensional structures are there?
Matrix structure
How does the structure of the matrix look like?
The level below the top management is structured by country groups (regional structure) and crossed by functions (functional structure) on the vertical axes
What are advantages of a matrix structure?
- simultaneous implementation of structure options (Ex.:
regional and functional) - efficient resource allocation through coordination
- possibility of decentralisation
- supports creativity & problem solving competencies
