Lecture 1 Flashcards
Driving trade forces after WW2
1) Reduction of tariffs and liberalization of world trade
2) transport easier
3) cost close to zero of telecomunication
What did the trade forces bring?
1) low trading costs
2) increase competition
3) expansion of international trade
Second wave consequences
1) massive growth in emerging countries
2) new multinational companies
3) acquisition of western companies (Lenovo bought IBM)
4) from emerging countries High-tech products
5) most of trades are components
Offshoring
giving labour to company abroad also within same company
Outsourcing
giving labour outside company
2 new categories of enterprises
1) multinational company
2) small service company
Maximize profit
both increase proceeds and reduce costs
organizational structure
roads in a town
process organization
temporal and spatial use of the roads
types of organizational structure
1) Line (family, padron)
2) Staff-line
3) with central functions
4) Matrix (multinational)
advantages of line
1) clear distinctions of tasks
2) clear subordination
3) quick & clear decisions
4) all decisions oriented to company goals (set by padron)
disadvantage of line
1) overload of the management
2) long lines of comunication
3) burden on intermediaries
4) complicated horizontal coordination
5) risk of information filtering
advantages of matrix
1) delegation of responsabilities
2) flexibility & self coordination
3) better cooperation
4) + satisfaction for employees and teamwork
disadvantages of matrix
1) more time for communication and coordination
2) delay of decisions
3) less transparent rules
4) ambiguity about double assignments
measuring instruments
financial accounting ( navigation in external world) management accounting (internal service)
