Hub9 pt2 International Company Flashcards
3 organizational design concerns
- finding most effective way to departmentalize (functionally compartmentalize) for efficiencies from specialized labor
2.coordinate
departmental activities to meet overall objectives - integration of organizational design to the culture
4 components to consider when designing structure of a
Multinational Enterprise (MNE)
1.Product and technical expertise for the company’s different businesses.
2. Geographic expertise on the countries and regions in which the company operates.
3. Customer expertise to gauge the similarity of client groups, industries, market segments, or population groups that transcend the boundaries of individual countries or regions.
4. Functional expertise in the company’s value chain activities.
international division, what is it, its the same level as what, what is it responsible for
division in the organization that is at the same level as the domestic division and is responsible for all non -home -country activities
what does the international division structure look like (describe image basically)
Top: CEO
Middle: Product division A, Product Division B, Product Division C, International
Bottomish: Below International are countries (europe, africa, asia, latin america)
within the International division structure; why can effectively managing a international division be challenging?
may be challenging as the size of the division and range of products, markets, and activities increase
as overseas operations increase in importance and scope, what do MNEs do towards int divisions and why/based on what
MNEs eliminate int divisions
- why? cuz its in favor of worldwide org structures
-based on: product region function or customer classes
Int structural stages model (how does it look like)
- lopsided eye
-global matrix at right corner - worldwide producty div in top of eye
-geographic area division bottom of eye
-international divsion on left corner of eye
-there are alt paths of dev of structure of int companies(hence why its shaped as eye)
-x axis: foriegn sales as % of total sales
-y axis: foreign product diversity
MNE structural expectations
When a MNE m anagers choose one of these designs for the organization’s structure , they expect to: (3 things)
1.Develop competitive strategies to confront global competition
2.Obtain lower production costs by promoting worldwide product standardization and manufacturing rationalization, (in essence economies of scale) and/or
3.Enhance the transference of technology and the more efficient allocation of company resources.
How does Global Corporate Form-Product look like (image)
Top: CEO
Below: World wide division A,B,C, Corporate staff-includes int div with area experts
Global Corporate Form - product
1.what does the organizational form avoid in regards to product, what does it create in regard to area?
2.what do some firms have a group of, what do they do?
1.avoid duplicate of product experts common in a company with a int div, they create a duplicate of area experts
2. some firms have group of regional experts in a int div, they advise the product div but have no line authority over them
what does the Geographic Region Structure look like
Top: CEO
Below: Asia/Pacific Division, Eureopean/Africa/Mideast Div, Latin America Div, North America Div, Corporate Staff- including product specialists
About Geographic Region Structure
1. whos it popular with?
2.whats its disadvantage of a org divided into geographic regions?
1.popular with companies that manufacture products with low or stable technological content that require strong marketing ability, and firms with diverse products with dif product requirements, competitve environments, political risks
2.each region must have its own product and functional specialists; although duplication of area specialists is eliminated, duplication of product and functional specialists is necessary.
How does Global Functional Structure look like
Top: CEO
below: Administration, Engineering, Finance, Marketing, Manufacturing
How does a Hybrid Org Structure look like
Top: CEO
Middle: Domestic Division A, B, International Division (serves product A and B in locations other than pacific), Corporate Staff
Below: Pacific Division (products A and B), Worldwide Product division C, Original Equipment (products A and B)
About Hybrid Org Structure
1. what does it use a mix of
2.what are these orgs a result of
- use a mixture of organizational forms at the top level.
2.result of a regionally organized company having introduced a new and different product line that management believes can best be handled by a worldwide product division
