international business chapter 15

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Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall15-1

International Business

Environments and Operations

Part 5

Global Strategy, Structure, andImplementation


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Chapter 15

TheOrganization

ofInternational

Business


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Chapter Objectives

Profile the evolving understanding of organizing acompany for international business

Describe the antecedents and features of traditionalstructures

Describe the antecedents and features of

contemporary structures

Study the systems used to coordinate and controlinternational activities

Profile the role and characteristics of organization

culture Link the ideas of strategy and organization in the

international company


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Organizing Operations

Organizing is the process of creating

the structure, systems, and culture

needed to implement the companysstrategy.


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FactorsAffecting Organizing

Operations


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Change: The Critical Factor

Changes in the market environment and nature of work push

managers to rethink how they organize their workplace. Trends inducing change:

Expansion of International Business

Importance of Knowledge as a Competitive Advantage

The Internet as a Design Standard

Workplace Adjustments

Managerial Adjustments

Changing Social Contract

Global Credit Crunch and Rising Unemployment


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Organization Structure

Structure: formal arrangement of jobs within a

company that specifies roles, responsibilities,

and relationships

Vertical Differentiation

Horizontal Differentiation


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Vertical Differentiation

Centralization versus Decentralization in

Organizational Design

Centralization: degree to which high-levelmanagers make strategic decisions and

delegate them to lower levels for

implementation.

Decentralization: degree to which lower-

level managers make and implement

strategic decisions.


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Horizontal Differentiation

Functional Structure Advantages and Disadvantages

Divisional Structure International Division Product Division

Geographic Division

Matrix Structure Unity of Command Principle

Mixed Structure



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Contemporary Structures

Network Structure

Virtual Organization

Pitfalls of Contemporary Structures



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Coordination and Control Systems

Approaches to Coordination:

Standardization

Plan

Mutual Adjustment

Control Methods:

Market Bureaucratic

Clan



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Control Tools

Reports

Visits to Subsidiaries

Cost and Accounting Comparisons

Evaluative Metrics

Information Systems



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Organization Culture

The Importance of Culture

Culture and Values

Culture and the Value Chain

Challenges and Pitfalls

Organization Culture and Strategy


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Future: The Role and Rise ofCorporate Universities

Managers believe companies mustpurposefully develop shared values

Worldwide, more than 1,000 new corporate

universities have begun operations Corporate universitiesphysical and virtualinstitutions that: Lead training efforts

Facilitate learning Help upgrade competencies

While advocating the philosophical ideals of thecompanys culture


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international business chapter 15

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