Organsation And Structures Of Multinational Enterprises

Question 1

Goals of MNEs

Answer 1

To standardised activities to maximise global efficiencies at the same time adapt activities to maximise local efficiency

To achieve the right structure and strategy

Question 2

What is an organisational structure

Answer 2

The formal arrangement of roles, responsibilities and relationships the MNE.

• involves specificity which people do what
• the balance between centralisation and decentralisation of authority

Question 3

Types of Differentiation

Answer 3

Vertical 
Horizontal 
Functional 
Divisional
Matrix 
Neoclassical

Question 4

WhAt is a vertical differentiation

Answer 4

Centralisation
-where high level managers make strategic decisions and delegate to lower mangers
Decentralised
-lower mangers make and implement decisions

Question 5

Horizontal differentiation

Answer 5

Specific the set of tasks to accomplish

Stipulates superior and subordinate relationships

Question 6

Functional structure

Answer 6

Groups people based on common expertise

Popular among products among companies with narrow product lines

Question 7

Division structure

Answer 7

Divides employees based on the product, customer segment, geographical location

Question 8

Matrix structure

Answer 8

Where the relationships are set up as a grid or matrix instead of hierarchy, eg employees have dual reporting relationships

Allows firms to adapt better in world wide conditions

Question 9

Neoclassical structures

Answer 9

Emphasises coordination and cultivation’ not command and control
Arranges differentiated elements in patterned flows of activity that allocate people and resources to problems and projects in a decentralised manner