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Chapter6: Designing Organisations for the International - Coggle Diagram
Chapter6: Designing Organisations for the International
6.1 Entering the Global Arena
Motivations for Global Expansion
Economies of Scale
Economies of Scope
Low-Cost Production Factors
Managing the Stages of International Development
Domestic Stage
International Stage
Multinational Stage
Global Stage
The Need for Cultural Intelligence
Global Expansion Through International Alliances and Acquisitions
The Challenges of Global Design
Increased Complexity and Differentiation
Increased Need for Coordination
Transfer of Knowledge and Reverse Innovation
Designing Structure to Fit Global Strategy
Strategies for Global Versus Local Opportunities
globalisation strategy: product design, manufacturing, and mar- keting strategy are standardized throughout the world, which is less costly than creating different products for different markets.
multidomestic (localization) strategy
glocalization strategy: seeks to achieve both global integration and local responsiveness
International Division
Global Product Division Structure
Global Geographic Division Structure
Global Matrix Structure
6.4 Additional Global Coordination Mechanisms
Global Teams
Headquarters Planning
Expanded Coordination Roles
Benefits of Coordination
Cost savings
Better decision making
Greater revenues
Increased innovation
6.5 The Transnational Model of Organization
Transnational model: represents the most advanced kind of international organisation, reflecting the ultimate in both organisational complexity, with many diverse units, and organisational coordination, with mechanisms for integrating the varied parts.
Assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships
Structures are flexible and ever-changing
Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style, rather than through formal structures and system
Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole