W08: Executing International Strategies

Question 1

Organizational Structures

Answer 1

> Basic Functional Structure

> Basic Divisional Structure

> International Division Structure (Coordinated federation, Administrative control, International mentality)

> Worldwide Area Division Structure (Decentralized federation, Personal control, Multinational mentality)

> Worldwide Product Division Structure (centralized hub, operational control, Global mentality)

> Global Matrix Structure (Integrated network, Process control, Transnational mentality)

The mindset behind those structures

Philips vs Panasonic case

Question 2

Mindset for managing international operations

Answer 2

Thinking Globally - Product Division Manager
> Global business or product-division managers have one overriding responsibility: to further the company’s global-scale efficiency and competitiveness
> This task requires not only the perspective to recognize opportunities and risks across national and functional boundaries but also the skill to coordinate activities and link capabilities across these barriers
> The global business manager’s overall goal is to capture the full benefit of integrated worldwide operations

Thinking Locally - Area Manager
> The national subsidiary manager’s [main task] is to be sensitive and responsive to the local market
> Country managers play a pivotal role not only in meeting local customer needs but also in satisfying the host government’s requirements and defending their
company’s market positions against local and external competitors

Question 3

Transnational Market (int. Managers)

Answer 3

> International managers need to analyze the world as a global market (global mindset) and to
understand national differences (local mindset)
It is the tensions between global and local forces that is at the heart of multinational management
Transnational Solution, when it is critical to adapt and when not

Question 4

Challenge of Transnationality

Answer 4

> There is no perfect organizational scheme for abolishing the globalization-localization tradeoff
Optimism about new approaches to problems of complex organizations should be tempered with the realization that all-purpose formal organization structure is unlikely
Informal organizational initiatives help to overcome cultural boundaries

Question 5

Using both global and local logics

Answer 5

successful international management requires an understanding of both local and global logic to make appropriate decisions that respond to the needs of specific situations