International Organization: Design 1 Definition - A plan for arranging & coordinating the activities...

International Management

International Organization: Design1Definition A plan for arranging & coordinating the activities of an organization for the purpose of fulfilling its mission & achieving its goalshttp://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12

ComponentsOrganizational StructureIntegrating MechanismsLocus of Decision MakingOrganizational Structure Defines the primary reporting relationships that exist within an org. Chain of command, hierarchy of responsibility, authority & accountability are established through organizational structureFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.

Factor Endowment: Amount of labor, land, money and entrepreneurship that could be exploited for manufacturing within a countrySocial Overhead capital: roads, schools, hospitals, and public parks

1International Organization: Structure2http://www.slideshare.net/fullscreen/jatinmaims/organization-structure-in-international-business/3

Functional StructureCEOProductionMarketingIndiaUSAUSAIndia Specialized jobs are grouped according to traditional business functions Ideal for company having a narrow product line, sharing similar technology Helps maximize economies of scale Highly efficientFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



International Division Structure Grouping each international business activity into its own division Creates a critical mass of international activities Creates quick response to environmental changes, enabling them to deal with different markets Prevents duplication of activities Often struggles to get resources form domestic division This structure is suited for multi- domestic strategies that demand little integration & standardization between domestic & foreign operationsCEOHRFinanceITStrategyHR (India)HR(Korea)HR(UK)Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Product Division Structure These are popular among international companies with diverse products Similar products are grouped under one product head Suited for a global strategy There may be duplicate functions & activities among divisions No formal means by which one product division can learn form another international expertiseCEOApparelsJewelry MarketingSalesProductionMarketingSalesProduction Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Geographic (Area) Division Structure These are used when foreign operations are large & not dominated by a single country or region Useful when managers can gain economies of scale on a regional rather than on global basis Drawback is the potential of duplication of work among areas as the company locates similar value activities in several places rather than consolidating them in most efficient placeCEOEurope & Latin America North America & PacificUKItalyVenezuelaUSAJapanCanadaFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Matrix Division Structure This tries simultaneously to deal with competing pressures for global integration & local responsiveness Institutes overlap among functional & divisional forms It makes each group share responsibility for foreign operations & enables each group exchange information & resources more willingly Drawbacks- Stop championing their groups unique needs, & thereby eliminate the multi knowledge generating & decision making r/p that is supposed to engageCEOTextile GroupsLatin America GroupAgricultural Products GroupEurope Africa GroupUKMexicoFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


6International Organization: Structure7http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12

Matrix Division StructureCEOFinance ManagerMarketing ManagerProduction ManagerHuman Resource ManagerProject AProject CProject BFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


7International Organization: Integration8Component Organizational integration happens when a company's internal and external factors successfully mesh Organizational integration is simply how responsive the company is to what is going on outside its walls Every company, large or small, has certain internal characteristics such as management style, systems, organizational structure, strategy, staff and organizational culture External characteristics include the company's mission or business model, input and output, the economy, technology, political factors, social factors and stakeholders- Identifying the degree of organizational integration is a way of evaluating the company's success and discovering ways to improvehttp://smallbusiness.chron.com/organizational-integration-82053.html

Organizational StructureIntegrating MechanismsLocus of Decision MakingOrganizational IntegrationFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


8International Organization: Integration9 A Lumber Company External Environment: a lumber company sells more lumber when the economy is strong and houses are being built. However, lumber companies are under increasing pressure from environmentalists and government regulations to produce lumber in an ecologically sustainable manner. The company's stakeholders -- owners, employees, suppliers, customers -- also have requirements, which include profitability and adequate production of lumber. To continue in business, the lumber company must organizationally integrate its internal and external factors Internal Factors: For a lumber company to achieve organizational integration, it must align its external factors with internal factors. Alignment involves making sure each department and employee understands the strategic direction of the company. It also involves educating the stakeholders why the company is spending money on certain projects and why costs for its products or services are rising. This involves training employees, using public relations to educate stakeholders and maintaining communication and verification systems Achieving Organizational Integration: If the field crews aren't in total agreement with the ecologically sustainable methods of the company, they won't abide by the company's rules for cutting and planting trees If just one sector of management, production or marketing is not in alignment with organizational strategy, then the organization is not integrated

http://smallbusiness.chron.com/organizational-integration-82053.html

Example for IntegrationFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


9International Organization: Integration10http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12

Levels of Work Group InterdependenceHead-QuarterABCFEDPooledABCSequentialACBDEFReciprocalFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Levels of Work Group InterdependenceHead-QuarterABCFEDPooled Occurs when organizational units have a common resource but no interrelationship with one anotherFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Levels of Work Group InterdependenceABCSequential Occurs when organizational units must coordinate the flow of information, resources and tasks from one unit to anotherFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Levels of Work Group InterdependenceACBDEFReciprocal Occurs when information, resources, tasks must be passed back & forth between work groupsFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.



Integrating MechanismsMethods of Increasing Coordination PotentialGeneral Management SystemsMethods for Reducing the Needs for CoordinationIntegrating MechanismsFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


14International Organization: Integration15http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12http://smallbusiness.chron.com/lateral-structural-arrangements-organizations-23406.htmlhttp://www.investopedia.com/terms/l/leadtime.asp

General Management Systems- Coordination of work units may be achieved through; Managerial Hierarchy Rules & procedures Plans & Goals

Coordination Potential Two mechanisms to enhance coordination (vertically & horizontally); Information Systems: facilitate the flow of information up & down, the traditional chain of command & across organizational units Lateral Relationships: exist across work units & serve as mechanisms for exchanging decision making information. E.g; Committees, Task Forces, Integrating positions, Inter- functional work teamsReducing Coordination The organization creates slack resources (Slack resources are resources in excess, relieves scarcity, increases allocation of resources to projects sought by subunits) that reduces the interdependence of work groups Actions that reduces the need for coordination; Longer lead times (Pre- processing Processing Post processing. Amount of time elapse b/w processes is a lead time. Larger stocks Work units that have only pooled interdependence Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


15International Organization: Decision Making16http://en.wikipedia.org/wiki/Decision-makinghttps://www.boundless.com/management/textbooks/boundless-management-textbook/decision-making-10/decision-making-in-management-75/defining-decision-making-366-3930/

Definition Decision-making can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilitiesPsychological: examining individual decisions in the context of a set of needs, preferences and values the individual has or seeksCognitive: the decision-making process regarded as a continuous process integrated in the interaction with the environmentNormative: the analysis of individual decisions concerned with the logic of decision making and rationality and the invariant choice it leads to

Steps in Decision Making Establishing Objectives Classifying and prioritizing objectives Developing selection criteria Identifying alternatives Evaluating alternatives against the selection criteria Choosing the alternative that best satisfies the selection criteria Implementing the decision

Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


16International Organization: Locus of Decision Making17http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12http://www.slideshare.net/fullscreen/shahveve/centralization-andecentralizationofauthority/14

Centralization Centralization is a systematic & consistent reservation of authority at central points in the organization Implications: Reservation of decision making power at the top level Reservation of operating authority with the middle level managers Reservation of operation at lower levels at the directions of the top level

Decentralization Decentralization is a systematic delegation of authority at all levels of management and in all of the organizationEmployeesBusiness Decision MakingWorking EnvironmentProcessesProject teamsCustomersFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


17International Organization: Locus of Decision Making18http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12http://www.slideshare.net/fullscreen/shahveve/centralization-andecentralizationofauthority/14

Patterns of DecentralizationDecentralizationDemocratizationParticipationCloser links with peopleAccountabilityLess cost to govt.More willingness to repayMore cost recoveredBetter servicesMore transparencyMore efficiencyFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


18International Organization: Locus of Decision Making19http://www.slideshare.net/fullscreen/guestdc818d/chap08-1452331/12http://www.slideshare.net/fullscreen/shahveve/centralization-andecentralizationofauthority/14 http://yourbusiness.azcentral.com/disadvantages-centralized-authority-7701.html

CentralizationAdvantagesDisadvantagesReduced costUniformity in actionPersonal leadershipFlexibilityImproved quality of workBetter Coordination

Delay in work, InefficiencyRemote controlNo loyaltyPoor creativity No special attentionResistance to Change

Distribution of burdenIncreased motivation & moraleGreater efficiency & outputDiversification of activitiesBetter coordinationFacilitate effective control & quick decision

More costNeed more specialistNo uniform actionNo equitable distribution of workControl systems

DecentralizationFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


19International Organization: Locus of Decision Making20http://www.slideshare.net/shahveve/centralization-andecentralizationofauthority

Factors Influencing Centralization Size & dispersal of operation Level of diversity of product lines Nature of growth Nature of business Quality of executives Effective control systemFactors Influencing Decentralization Size of organization- large/ small Cost & importance of decisions Management philosophy Availability of efficient managers Types of business



20International Organization: Decision Making: Organizational Structure21http://education-portal.com/academy/lesson/bureaucratic-organizations-mechanic-organic-bureacracies.html

Organizational Structure Refers to the type of framework a company uses to distinguish; - Power and authority - Roles and responsibilities - Manner in which information flows through the organization- Tom Burns and G. M. Stalker identified two basic forms of organizational structure: mechanistic and organic structures

Mechanistic Structure An organizational structure that is based on a formal, centralized network Best suited for companies that operate in a stable and certain environment Authority reflects a well-defined hierarchy where top-level managers make the majority of the decisions Subordinates are expected to follow the directions of management and not question their rationale Communication flows through hierarchical routes from the top down Individualized job specialization is used to place employees into designated tasks As a result of the stability of tasks, there tends to be low integration between functional areas or departments Management makes most of the decisions, information is communicated based on chain of command, tasks are highly specialized, departments operate as their own entity, and change is, for the most part, uncommon. Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


21International Organization: Decision Making: Organizational Structure22http://education-portal.com/academy/lesson/bureaucratic-organizations-mechanic-organic-bureacracies.html

OrganicStructure Used in organizations that face unstable and dynamic environments and need to quickly adapt to change Communication is lateral and rapid in these complex environments Integrate functional areas and departments together for information to flow seamlessly between departments Needs can change quickly in an organic organization Joint specialization exists, whereby employees work together and coordinate tasks of a larger project often in the form of teams Decision-making in organic structures is decentralized, involving multiple parties at all levels of the organizationFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


22International Organization: Coordination23https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-structure-2/trends-in-organization-27/increasing-coordination-161-3984/

What Coordination is the act of organizing and enabling different people to work together to achieve an organization's goals It is a managerial function in which different activities of the business are properly adjusted and interlinked Employees within the functional division of an organization tend to perform a specialized set of tasks, such as engineering. This leads to operational efficiency within that group. However, it can also lead to a lack of communication between various functional groups within an organization, rendering the organization slow and inflexible Increasing coordination internally can be accomplished by; - Creating a well-communicated and accurate mission statement - Clearly defining strategic objectives - Monitoring and evaluating each functional group - Promoting cross-departmental meetings and projectsManagers should strengthen communication across all facets of the organization to increase the level of integration between each moving part- Structure is a central determinant of effective coordination across an organization: delicate balance between centralization and decentralization



23International Organization: Coordination24http://www.yourarticlelibrary.com/management/6-important-characteristics-of-coordination-in-an-organisation/867/http://smallbusiness.chron.com/techniques-coordination-organization-44073.html

Characteristics Coordination Integrates Group Effort Coordination Ensures Unity of Action Coordination is a Continuous Process Coordination is an All-pervasive Function Coordination is the Responsibility of All Managers

Techniques Establishing structure: - Establishing a clear chain of command - Clearly defining job roles - Establishing an organizational chart - Each department should produce regular status reports and communicate with other departments to ensure work flows from one part of the organization to another - Process improvement initiatives to eliminate waste, reduce errors and improve customer satisfaction Planning Tasks: - Having Project Coordinators - Develop comprehensive plans to describe the work Communicating Decisions: - Good communication prevents disputes, conflicts and delays - Conduct regular team meetings and document decisions made - Effective leadership involves motivating team members to adhere to established policies and procedures so operations run smoothly



24International Organization: Coordination25http://www.yourarticlelibrary.com/management/6-important-characteristics-of-coordination-in-an-organisation/867/http://smallbusiness.chron.com/techniques-coordination-organization-44073.html

Techniques Aligning activities: - Several teams may be working in parallel - Coordinating the efforts requires an effective liaison, ensuring supplies are ordered and delivered in time to use in production activities - Completing checklists or formal quality control processes can be implemented to coordinate work flow effectively



25International Organization: Coordination Model26http://www.slideshare.net/guestc1aa5a3f/coordination-3200053http://blogs.msdn.com/b/nickmalik/archive/2007/10/19/soa-in-the-coordination-model.aspxhttp://www.businessdictionary.com/definition/corporate-strategy.htmlhttp://education-portal.com/academy/lesson/what-is-financial-reporting-purpose-statement-examples-analysis.html

Business IntelligenceManagementBusiness ProcessesOperational DataCustomers & PartnersCorporate StrategyFinancial Reporting Tools and systems for strategic planning Customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis Business Units A single gray horizontal box represents commonality across business units A coordination model company will share customers and partners, even though each of the business units are managed separately The business processes are distinct by each business, as is the operational data It is all brought together in the business intelligence as a way of understanding the customer from a 360-degree view Overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals Disclosure of financial information to management and the public (if the company is publicly traded) about how the company is performing over a specific period of time Helps management to engage in effective decision-making Financial health and activities of the company to its stakeholders including its shareholders, potential investors, consumers, and government regulators Fiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


26International Organization: Control27http://www.sagepub.in/upm-data/16320_Fatehi_Chapter_Nine.pdf

Organizational Control Organizational control refers to the process of monitoring and evaluating the effectiveness and efficiency of organizational performance and taking corrective action when performance falls short of expectations

Control Mechanisms Input Control: is the behavioral control, where expectations are communicated to employees in advance Through personal supervision and surveillance, they are guided and directed to reach goals Rewards and punishment are the instruments that are used to induce goal-oriented behavior modification It could be more useful at the lower levels of the organization, where activities and their outcomes are more predictable It is proactive Output Control: result oriented and uses impersonal measures such as the difference between the expected and the final outcome It relies on feedback information to correct deviations Organizations tend to use more output controls at the higher levels of the hierarchy, where there is a high level of complexity and interdependence among tasks It is reactiveFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


27International Organization: Control28Control Mechanismshttp://www.sagepub.in/upm-data/16320_Fatehi_Chapter_Nine.pdf

- Centralization of decision making: is characteristic of a firm in which most decisions are made by top-level managers- In a centralized MNC, foreign subsidiaries have limited decision-making authority, and most important matters are decided by headquarters Decentralization, where decision- making power is dispersed among more managers Decentralized MNCs give more autonomy to their foreign subsidiaries Degree of Autonomy granted to the subsidiary: The nature of the decisions that need to be made and their impact on the rest of the MNC, the type of technology used, and the product and industry characteristics. In situations where the decision outcomes affect only the subsidiary and the host country market, managers often give more autonomy In large, globally integrated firms, decision making is more centralized so that the activities of various subsidiaries can be closely coordinated - For the most important matters, such as negotiating new agreements with host governments, subsidiaries are required to clear their decisions with headquartersFiscal Policy: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.Capital Markets: Markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.


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International Organization: Design 1 Definition - A plan for arranging & coordinating the activities...

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