Presentation on theme: "18 Organizational Design And Control International Business"— Presentation transcript:1 Show
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Organizational Design And Control International Business 3
Chapter Objectives Explain why the design of organizational structure is important to international companies Understand the organizational dimensions that must be considered when selecting organizational structures Discuss the various organizational forms Understand the concept of the virtual corporation Explain why decisions are made where they are among parent and subsidiary units of an international company
Understand how an IC can maintain control of a joint venture List the types of information an IC needs to have reported to it by its units around the world 18-2 4 Organizational Structure 5 Organization Design Organization design deals with how an international business should be organized in
order to ensure its worldwide business activities are able to be integrated in an efficient and effective manner Structures and systems must be consistent with each other and with the environmental context Size and complexity of the organization must be considered in design Structure must be able to evolve over time in order to respond to change 18-4
6 Design Concerns Organizational Design Concerns
7 Design Dimensions Product and technical expertise regarding the businesses Geographic expertise
regarding the countries and regions Customer expertise regarding the client groups, industries, market segments, or population groups Functional expertise regarding the value chain activities 18-6 8 Evolution of the International
Company 9 Global Corporate Form Product 10 Global Corporate Form Geographical Regions 11 Global Corporate Form Geographical
Regions
12 Global Corporate Form Function 13
Global Corporate Form Matrix Organization
14 Strategic Business Units
15 Changes in Organizational Form 16 Current Organizational Trends 17 Current Organizational Trends 18 Control Where Are Decisions Made? All at IC headquarters 19 Control Product and
Equipment 20 Control Greater reliance on subsidiary management if 21
Control Benefiting the Enterprise to the Detriment of a Subsidiary 22 Control Subsidiary Frustration
23 Joint Ventures and Subsidiaries Less than 100 Percent Owned 24 Joint Ventures and Subsidiaries Less than 100 Percent Owned 25 Control For controls to be effective 26
De-Jobbing Mass production and large organizations are disappearing 27
De-Jobbing Traits of Companies with De-Jobbed Workers Are organizational forms in which product divisions are defined as though they were independent business?Strategic business units: are organizational forms in which product divisions are defined as though they were independent businesses. The potential benefits of the virtual corporation concept include that: it permits greater flexibility than is associated with more typical corporate structures.
What name is given to the organization of divisions by product?5. Divisional structure. In a divisional structure, organizations are split into divisions based on specific products, services or geographies.
What are the 4 types of organizational structures quizlet?This includes Simple Structure, Functional Structure, Divisional Structure and Matrix Structure.
Which structure is commonly Departmentalized into such areas as production marketing accounting and engineering?The most common organizational structure is the functional or departmental form. In this structure, all of the employees of a specific function are brought together to form a department. Examples of these individual departments are sales, accounting, marketing, finance, research and production.
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