Lecture 6.3 International Organizations

Question 1

Global design challenges for companies

Answer 1

1. Complexity and Differentiation
   = Countries differ in economic development, culture, politics, government regulations, infrastructure
   = Need for specialized departments dealing with legal and accounting regulations in various countries
2. Need for Integration
   = Achieve integration and coordination to have the benefits of scale and scope economies and production cost efficiencies
   = Finding ways to share information, ideas, new products, and technologies across the organization
3. Transfer of Knowledge and Innovation
   = Learning from international experience by sharing knowledge and innovations across the enterprise
   = Increase trickle-uo/reverse innovation approaches

Question 2

Definition: Trickle-up innovation

Answer 2

= refers to the process where products or practices initially developed for emerging markets or lower segments of the consumer pyramid find their way into more developed or higher-end markets

Question 3

Which coordination mechanisms are used internationally?

Answer 3

1. Headquater Planning
2. Expanded Coordination Roles
3. Transnational Teams

Question 4

The transnational model of organization

Answer 4

= typical for global companies

1. Worldwide dispersion of assets and resources
2. Ever-changing and flexible structures
3. Initiation of strategy and innovation by subsidiary managers
4. Organizational guidance through corporate culture, shared vision, and management style, as opposed to (solely) formal structures