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    Organization Theory and Design

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    taimoor.11750
    The document discusses strategies and organizational structures for companies operating globally. It covers motivations for global expansion, stages of international evolution, and strategies for global versus local opportunities. The document also examines different global organizational structures and challenges of leading multinational companies.

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    Organization Theory and Design

    Uploaded by

    taimoor.11750
    13 views24 pages
    The document discusses strategies and organizational structures for companies operating globally. It covers motivations for global expansion, stages of international evolution, and strategies for global versus local opportunities. The document also examines different global organizational structures and challenges of leading multinational companies.

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    The document discusses strategies and organizational structures for companies operating globally. It covers motivations for global expansion, stages of international evolution, and strategies for global versus local opportunities. The document also examines different global organizational structures and challenges of leading multinational companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    13 views24 pages

    Organization Theory and Design

    Uploaded by

    taimoor.11750
    The document discusses strategies and organizational structures for companies operating globally. It covers motivations for global expansion, stages of international evolution, and strategies for global versus local opportunities. The document also examines different global organizational structures and challenges of leading multinational companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 24

    Design Organizations for the International Environment


    Chapter # 6
    Entering The Global Arena

     More companies are doing business globally
     Companies need top leaders who have a global outlook
     Advancements in technology and world communications have changed the competitive
    landscape
    Motivations for Global Expansion

    Economic, technological, and competitive forces
    have combined to push companies from a
    domestic to a global focus

    Motivations for Global Expansion:


     Economies of Scale
     Economies of Scope
     Low-Cost Production Factors

    3
    The Global Economy as Reflected in
    the Fortune Global 500

    Stages of International Evolution

    5
    Global Expansion Through
    International Strategic Alliance

     Licensing – allowing another firm to market your brands
     Joint Ventures – separate entity of two or more firms
     Consortia – groups of independent companies
    Strategies for Global vs.
    Local Opportunities

     Global standardization versus local responsiveness
     Globalization or multidomestic strategy
     Globalization strategy - products are standardized throughout the world
     Multidomestic strategy - competition is handled in each country independently

    7
    Fitting Organization Structure to
    International Advantages

    Global Organization Structure


     International Division
     Global Product Division
     Global Geographic Division
     Global Matrix Structure

    9
    Domestic Hybrid Structure with
    International Division

    Partial Global Product Structure

    11
    Global Geographic Structure

    Global Matrix Structure

    13
    The Global Organizational Challenge


    Leading Multinational Companies and
    Selected Countries

    15
    Examples of Trickle-Up Innovation

    Global Coordination Mechanisms

     Global Teams
     Headquarters Planning
     Expanded Coordination
    Roles

    17
    Benefits of Collaboration

    → Cost Savings
    → Better Decision Making
    → Greater Revenue
    → Increased Innovation

    18
    Cultural Differences In
    Coordination and Control

    National Value System
     Power Distance: people accept inequality
     Uncertainty Avoidance: members feel uncomfortable with
    uncertainty and ambiguity

    19
    National Approaches to
    Coordination and Control

    1) Centralized Coordination: Japanese Companies
    2) Decentralized Approach: European Firms
    3) Coordination and Control Through Formalization: The United States
    4) Tradition in Chinese companies remains more family-oriented and
    relatively small

    20
    The Transnational
    Model of Organization

     Advanced international organization to deal with multiple,
    interrelated, complex issues

     Theory is based on interdependence

     Useful for large, multinational companies with subsidiaries

     Create an integrated network of individual operations that are


    linked together

     Not an organizational chart; it is a managerial state of mind

    21

    International
    Organizational
    Units
    Transnational Organizations

     Assets and resources are dispersed worldwide
     Structures are flexible and ever-changing
     Subsidiary managers initiate strategy and innovations that become
    strategy for the whole organization
     Corporate culture, shared vision, and management style guide the
    organization

    23
    Design Elements

     Managers must design organizations for complex international
    coordination
     Organizations’ international strategies and structures evolve
     There are diverse options for specific international strategies
     There are a variety of challenges for global organizations
     Diverse national and cultural values influence an organization’s
    approach
     Companies operating globally require broad coordination

    24

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