International Management Chapter 8

Front 1

whats important when you form your structure?

Back 1

A firm’s structure must “fit” with its strategy—that is, be conducive to its implementation. Choice of structure also should be contingency based, taking into consideration factors such as the firm’s size, the appropriate technology, the organizational environment, geographic dispersion, and differences in time, language, cultural attitudes, and business practices. Many managers find it more difficult to develop the appropriate organizational structure than it is to develop the strategy.

Front 2

4 parts of Evolution and Change in MNC Organizational Structures?

Back 2

1* Domestic structure plus export department
2* Domestic structure plus foreign subsidiary

3* Global functional structure
*International division

4* Global product structure
* Matrix structure

Front 3

Describe Domestic structure plus export department?

Back 3

You have your structure as before but you will add an export department that will export your products, not a big restructure.

Front 4

Describe Domestic structure plus foreign subsidiary?

Back 4

You have your structure as before but now you will add the use of subsidiary, but theese will be cloose to the headquarter and report directly to it.

Front 5

Describe Global functional structure and
International division?

Back 5

You will restructure and add an international division which are globaly somewhere else than the headquarter and this will give you the oppurtunity to use subsidiarys more spread over the world.

Front 6

Describe Global product structure

Back 6

You will use several divisions which have controll over each product in every country. Every product division is controlling it self with economics and so on.
There are also the global product structure(Area) and that means that you instead of focusing on products you will focus on the geographical structure. You dont have do know as much about the product instead you need to be an expert on the market and the foregin country, e.g what the local requirements are.

Front 7

Keys to organizationing for globalization?

Back 7

Differentiation
Integration

Front 8

What is globaliziation strategy?

Back 8

A globalization strategy treats the world as one market by using a standardized approach to products and markets.

Front 9

Why is it hard to succes with this strategy?

Back 9

A globalization strategy usually involves rationalization and the development of strategic alliances. To achieve rationalization, managers must choose the manufacturing location for each product based on where the best combination of cost, quality, and technology can be attained. This means different parts and components are often produced in different countries and that product design and marketing are essentially the same in all markets. As such, differentiation and specialization in local markets is minimized. Another risk associated with globalization is exposure to volatility from all corners of the globe.

Front 10

Think Globally—Act Locally” Structure

Back 10

When you are going global you cant forget the local thinking. An example is if Levis should not think locally here in sweden and only think global, and if the global thinking is "the usa way" and try to sell big ugly jeans as they like in usa it would not sell here in sweden.

Front 11

Matrix Structure and Transnational Company is?

Back 11

Attempts to combine:
1.The capabilities and resources of a multinational corporation
2.The economies of scale of a global corporation
3.The local responsiveness of a domestic company
4.The ability to transfer technology efficiently typically of the international structure

Front 12

Control Systems for Global Operations name the two types and give example of them.

Back 12

Direct Coordinating Mechanism - Problem: quality control
Solution: built processing plant in Moscow and provided managerial training
Other options: visits by head-office personnel and regular meetings

Indirect Coordinating Mechanism - Examples: sales quotas, budgets, and financial tools and reports
Three financial statements
One for accounting standards in host country
One for the standards in the home country
One for consolidation