Module 7 Vocabulary Flashcards
The formal way a company divides labor, groups employees, and assigns responsibilities
Organizational structure
Companies completely owned or controlled by a parent company
Subsidiaries
Large corporations made up of several combined companies, often formed through mergers and takeovers
Conglomerates
Dividing organizational activities into smaller tasks
Division of labor
A visual map of the roles and relationships within an organization and how functions and responsibilities are divided
Organizational chart
Lines on an organizational chart showing the relationships within an organization
Vertical and horizontal linkages
One employee should only report to one person
Unity of command
Organizing a company’s people, tasks, and resources based on goods or services
Product departmentalization
Organizing a company’s people, tasks, and resources based on the type of customer served
Market departmentalization
Organizing a company’s people, tasks, and resources based on a geographic region
Geographic departmentalization
An organizational structure dividing employees into departments based on business functions
Functional/departmental structure
An organizational structure grouping employees into departments based on products, processes, or geographic regions
Divisional structure
An organizational structure that combines more than one organizing perspective at once, such as combining geographic and product models
Matrix structure
A newer type of organizational structure that includes a group of workers, with complementary skills, all working toward a common goal, such as a specific project
Team structure
Organizational structures with many levels
Tall structure
Organizational structures with few layers
Flat structure
An independent division within a large company with responsibility for specific products or activities
Specific strategic business unit
A company that operates in two or more countries
Multinational corporation
The degree to which decision-making authority is concentrated at higher levels in an organization and business functions controlled in a central location
Centralization
Companies with structures that limit decision-making to higher levels in the organizational hierarchy
Centralized companies
Companies with structures that distribute the authority to make decisions to lower levels of employees who are closer to the problem
Decentralized companies
The degree to which a company is able to use the same products and methods in multiple countries
Global integration
The degree to which a company must customize its products and methods to meet the conditions in other countries
Local responsiveness
An international commerce strategy that focuses on shipping domestic products to other countries
Export strategy
A strategy for international commerce that does not customize products for local markets
Standardization strategy
A strategy of international commerce that customizes products to each country
Multidomestic strategy
An international commerce strategy that combines the aspects of standardization and multidomestic strategies
Transnational strategy
