Globalization & Globalization & Organizational StructureOrganizational Structure

Entering the Global MarketEntering the Global Market Why Go Global?Why Go Global?

Economies of scaleEconomies of scale Economies of scopeEconomies of scope Cheaper production costsCheaper production costs

Entering the Global MarketEntering the Global Market Stages of DevelopmentStages of Development

Domestic stageDomestic stage International stageInternational stage Multinational stageMultinational stage Global stageGlobal stage

Entering the Global MarketEntering the Global Market How to Go Global?How to Go Global?

LicensingLicensing Joint ventureJoint venture ConsortiaConsortia

Virtual organizationVirtual organization

Globalization StrategiesGlobalization Strategies Globalization StrategyGlobalization Strategy

Coca-ColaCoca-Cola

Multidomestic StrategyMultidomestic Strategy Proctor & GambleProctor & Gamble

International DivisionInternational Division

Global Product Division Global Product Division StructureStructure

Global Geographic Division Global Geographic Division StructureStructure

Global Matrix StructureGlobal Matrix Structure

Global CapabilitiesGlobal Capabilities ChallengesChallenges

Complexity and differentiationComplexity and differentiation Need for integrationNeed for integration Knowledge transferKnowledge transfer

How to CoordinateHow to Coordinate Global teamsGlobal teams Headquarters planningHeadquarters planning Expanded coordination rolesExpanded coordination roles

Cultural DifferencesCultural Differences Power DistancePower Distance Uncertainty AvoidanceUncertainty Avoidance

Three National ApproachesThree National Approaches Centralized CoordinationCentralized Coordination

JapanJapan Decentralized ApproachDecentralized Approach

EuropeEurope FormalizationFormalization

United StatesUnited States

Transnational ModelTransnational Model What is it?What is it?

Four CharacteristicsFour Characteristics