Chapter 6-12th
Chapter 6-12th
Chapter 6-12th
International Environment
Chapter
6
Organization Theory and Design
Twelfth Edition
Richard L. Daft
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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
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Motivations for Global Expansion
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3
The Global Economy as Reflected in
the Fortune Global 500
4
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Stages of International Evolution
5
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Global Expansion ─ International
Alliances and Acquisitions
• Licensing – allowing another firm to market
your brands
• Joint Ventures – separate entity of two or
more firms
• Acquisitions – offer greater control than joint
ventures
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Challenges of Global Design
7
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Leading Multinationals and Selected
Countries 2010
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part. 8
Examples of Trickle-Up Innovation
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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
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10
Fitting Organization Structure to
International Advantages
11
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Global Organization Structure
International Division
Global Product Division
Global Geographic Division
Global Matrix Structure
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12
Domestic Hybrid Structure with
International Division
13
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Partial Global Product Structure
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Global Geographic Structure
15
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Global Matrix Structure
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16
Global Coordination Mechanisms
Global Teams
Headquarters Planning
Expanded
Coordination Roles
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17
Benefits of Collaboration
→ Cost Savings
→ Better Decision Making
→ Greater Revenue
→ Increased Innovation
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18
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
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19
International
Organizational Units
20
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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
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21
Design Elements
Managers must design organizations for
complex international coordination
structures evolve
coordination
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23