国际商务ch13.ppt
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11
The Networked Global Organization
The network avoids problems of effort duplication, inefficiency, and resistance to ideas. Subsidiaries are able to make local business development decisions within the global framework.
wenku.baidu.com
Second most used approach. Follows the marketing concept most closely.
7
Global Organizational Structures
(continued)
Types:
Functional Structure
Customer Structure
Bureaucratic/Formalized Control Cultural Control
18
The Bureaucratic/Formalized Control System
Elements:
International budget and planning system. Functional reporting system. Policy manuals to direct functional performance.
10
Decision Making
Factors that impact structure and decision making.
Degree of involvement in international operations. Products that the firm markets. Size and importance of the firm’s markets. Human resource capability of the firm.
21
13
Internal Cooperation
(contd.)
Greatly assisted by Internet-based technology. Access to virtual teams.
14
Country Organizations
Roles:
Contributor
Implementor
Chapter 13
Organization, Implementation, and
Control
1
Learning Objectives
Describe alternative organizational structures for international operations. Highlight factors affecting decisions about the structure of international organizations. Indicate roles for country organizations in the development of strategy and implementation of programs. Outline the need for and challenges of controls in international operations.
19
Cultural Control
Requires personal interaction. Requires careful selection and training of corporate personnel.
20
Exercising Controls
Manufacturing subsidiaries tend to be controlled more intensively than sales subsidiaries. U.S.-based multinationals place more emphasis on quantitative data. Control systems must consider the impact of the environment.
The simplest from the administrative viewpoint. A variation is one that uses processes as a basis for structure.
Especially used if customer groups are dramatically different.
12
Internal Cooperation
Success for a global firm involves the ability to move intellectual capital. Boundarylessness describes a situation in which people can act without regard to status while feeling the freedom to search elsewhere for innovative ideas. International teams promote cooperation.
6
Global Organizational Structures
Types:
Product Structure
Most often used by multinational corporations. Improved cost efficiency is a major benefit.
Area Structure
Black Hole
The international company has a low competence country organization, or none at all.
17
Controls
Internal benchmarking is of great importance in today’s market. General instruments of control:
5
The International Division
Centralizes in one entity all of the responsibility for international activities. Best serve firms with few products that do not vary significantly. Coordination is important.
A route and locus of decision making and coordination. A system for reporting and communications.
3
Organizational Designs
Types of structures used by companies to manage foreign activities:
Country organization with a distinctive competence.
16
Country Organizations
Implementor
Most entities hold this role. It provides
critical mass for the global effort.
15
Country Organizations
Strategic Leader
A competent national subsidiary that may be serving as a partner in developing and implementing strategy.
Contributor
2
Organizational Structure
Companies must change strategies as their structures evolve from domestic to multinational. The basic functions of an organization are to provide:
Little/No Formal Organization
International Division
Global Organizations
4
Little or No Formal Organization
Domestic operations assume responsibility for international activities in the early stages. The organizational structure reflects the increased demands from the international marketplace. The export department structure becomes obsolete as the firm becomes more involved in foreign markets.
9
Implementation
Locus of Decision Making
Decentralized systems have loose and simple controls. Subsidiary operates as a profit center. Centralized systems have tight controls. Strategic decision making is at headquarters. Coordinated decentralization calls for overall strategy to come from headquarters. Subsidiaries are free to implement within agreed upon range.
8
Global Organizational Structures
(continued)
Types:
Combines two or more organizational dimensions simultaneously.
Mixed Structure Matrix Structure
Integrates the various approaches. Most companies find this arrangement problematic. Complexity of this structure may increase the reaction time of a company.
The Networked Global Organization
The network avoids problems of effort duplication, inefficiency, and resistance to ideas. Subsidiaries are able to make local business development decisions within the global framework.
wenku.baidu.com
Second most used approach. Follows the marketing concept most closely.
7
Global Organizational Structures
(continued)
Types:
Functional Structure
Customer Structure
Bureaucratic/Formalized Control Cultural Control
18
The Bureaucratic/Formalized Control System
Elements:
International budget and planning system. Functional reporting system. Policy manuals to direct functional performance.
10
Decision Making
Factors that impact structure and decision making.
Degree of involvement in international operations. Products that the firm markets. Size and importance of the firm’s markets. Human resource capability of the firm.
21
13
Internal Cooperation
(contd.)
Greatly assisted by Internet-based technology. Access to virtual teams.
14
Country Organizations
Roles:
Contributor
Implementor
Chapter 13
Organization, Implementation, and
Control
1
Learning Objectives
Describe alternative organizational structures for international operations. Highlight factors affecting decisions about the structure of international organizations. Indicate roles for country organizations in the development of strategy and implementation of programs. Outline the need for and challenges of controls in international operations.
19
Cultural Control
Requires personal interaction. Requires careful selection and training of corporate personnel.
20
Exercising Controls
Manufacturing subsidiaries tend to be controlled more intensively than sales subsidiaries. U.S.-based multinationals place more emphasis on quantitative data. Control systems must consider the impact of the environment.
The simplest from the administrative viewpoint. A variation is one that uses processes as a basis for structure.
Especially used if customer groups are dramatically different.
12
Internal Cooperation
Success for a global firm involves the ability to move intellectual capital. Boundarylessness describes a situation in which people can act without regard to status while feeling the freedom to search elsewhere for innovative ideas. International teams promote cooperation.
6
Global Organizational Structures
Types:
Product Structure
Most often used by multinational corporations. Improved cost efficiency is a major benefit.
Area Structure
Black Hole
The international company has a low competence country organization, or none at all.
17
Controls
Internal benchmarking is of great importance in today’s market. General instruments of control:
5
The International Division
Centralizes in one entity all of the responsibility for international activities. Best serve firms with few products that do not vary significantly. Coordination is important.
A route and locus of decision making and coordination. A system for reporting and communications.
3
Organizational Designs
Types of structures used by companies to manage foreign activities:
Country organization with a distinctive competence.
16
Country Organizations
Implementor
Most entities hold this role. It provides
critical mass for the global effort.
15
Country Organizations
Strategic Leader
A competent national subsidiary that may be serving as a partner in developing and implementing strategy.
Contributor
2
Organizational Structure
Companies must change strategies as their structures evolve from domestic to multinational. The basic functions of an organization are to provide:
Little/No Formal Organization
International Division
Global Organizations
4
Little or No Formal Organization
Domestic operations assume responsibility for international activities in the early stages. The organizational structure reflects the increased demands from the international marketplace. The export department structure becomes obsolete as the firm becomes more involved in foreign markets.
9
Implementation
Locus of Decision Making
Decentralized systems have loose and simple controls. Subsidiary operates as a profit center. Centralized systems have tight controls. Strategic decision making is at headquarters. Coordinated decentralization calls for overall strategy to come from headquarters. Subsidiaries are free to implement within agreed upon range.
8
Global Organizational Structures
(continued)
Types:
Combines two or more organizational dimensions simultaneously.
Mixed Structure Matrix Structure
Integrates the various approaches. Most companies find this arrangement problematic. Complexity of this structure may increase the reaction time of a company.