designing_organisations_for_international_environment
-
Upload
abdinasir-hussein-mohamed -
Category
Business
-
view
239 -
download
1
description
Transcript of designing_organisations_for_international_environment
![Page 1: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/1.jpg)
6 Chapter
Design Organizations for the International Environment
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organization Theory and DesignEleventh EditionRichard L. Daft
![Page 2: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/2.jpg)
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
2©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 3: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/3.jpg)
Motivations for Global Expansion
Motivations for Global Expansion:• Economies of Scale• Economies of Scope• Low-Cost Production Factors
Economic, technological, and competitive forces have combined to push companies
from a domestic to a global focus
3©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 4: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/4.jpg)
The Global Economy as Reflected in the Fortune Global 500
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 5: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/5.jpg)
Stages of International Evolution
5©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 6: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/6.jpg)
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
6©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 7: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/7.jpg)
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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 8: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/8.jpg)
Fitting Organization Structure to International Advantages
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 9: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/9.jpg)
Global Organization Structure
International Division
Global Product Division
Global Geographic Division
Global Matrix Structure
9©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 10: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/10.jpg)
Domestic Hybrid Structure with International Division
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 11: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/11.jpg)
Partial Global Product Structure
11©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 12: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/12.jpg)
Global Geographic Structure
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 13: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/13.jpg)
Global Matrix Structure
13©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 14: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/14.jpg)
The Global Organizational Challenge
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 15: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/15.jpg)
Leading Multinational Companies and Selected Countries
15©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 16: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/16.jpg)
Examples of Trickle-Up Innovation
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 17: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/17.jpg)
Global Coordination Mechanisms
Global Teams
Headquarters Planning
Expanded Coordination Roles
17©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 18: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/18.jpg)
Benefits of Collaboration
→ Cost Savings
→ Better Decision Making
→ Greater Revenue
→ Increased Innovation
18©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 19: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/19.jpg)
Cultural Differences In Coordination and Control
National Value System
• Power Distance: people accept inequality
• Uncertainty Avoidance: members feel uncomfortable with uncertainty and ambiguity
19©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 20: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/20.jpg)
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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 21: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/21.jpg)
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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 22: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/22.jpg)
International Organizational Units
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 23: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/23.jpg)
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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
![Page 24: designing_organisations_for_international_environment](https://reader034.fdocuments.in/reader034/viewer/2022051209/547b2279b4af9f306c8b46d6/html5/thumbnails/24.jpg)
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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.