powerpoint by: mohamad sepehri, ph.d. jacksonville university 8-1 copyright ©2011 pearson...

24
PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Upload: jean-edwards

Post on 20-Jan-2016

219 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

PowerPoint by:Mohamad Sepehri, Ph.D.

Jacksonville University

8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 2: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Chapter Learning GoalsChapter Learning Goals

1. Understand the importance of appropriate organizational structures to effective. strategy implementation.

2. Become familiar with the types of organizational designs suitable for the level and scope of internationalization of the firm.

3. Be able to recognize why and when organizational restructuring is needed.

1. Understand the importance of appropriate organizational structures to effective. strategy implementation.

2. Become familiar with the types of organizational designs suitable for the level and scope of internationalization of the firm.

3. Be able to recognize why and when organizational restructuring is needed.

8-2Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 3: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Chapter Learning GoalsChapter Learning Goals

4. Understand the role of technology in the evolution of the networked structure; and to appreciate the role of “human networks” in achieving business goals.

5. Realize how organizational design affects manager’s job, for example, on the level and location of decision making.

6. Emphasize the role of control and monitoring systems suitable for specific situations in the firm’s international operations.

4. Understand the role of technology in the evolution of the networked structure; and to appreciate the role of “human networks” in achieving business goals.

5. Realize how organizational design affects manager’s job, for example, on the level and location of decision making.

6. Emphasize the role of control and monitoring systems suitable for specific situations in the firm’s international operations.

8-3Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 4: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Opening Profile: Samsung Electronics Recognizes to Fight

Downturn

Opening Profile: Samsung Electronics Recognizes to Fight

Downturn Badly hit by the global economic

downturn Implemented a radical

reorganization in 2009 Consolidating business

operations into two operating divisions

Replaced the heads of five of it eight overseas operations

Badly hit by the global economic downturn

Implemented a radical reorganization in 2009

Consolidating business operations into two operating divisions

Replaced the heads of five of it eight overseas operations

8-4Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 5: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Organizational StructureOrganizational Structure

8-5Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 6: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Evolution and Change in MNC Organizational Structures

Evolution and Change in MNC Organizational Structures

Structural evolution/stage modelAlcoa

Created smaller unitsLinked geographically dispersed, but

similar businesses (e.g., Brazil and Australia)

Structural evolution/stage modelAlcoa

Created smaller unitsLinked geographically dispersed, but

similar businesses (e.g., Brazil and Australia)

8-6Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 7: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Evolution and Change in MNC Organizational Structures

Evolution and Change in MNC Organizational Structures

8-7Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 8: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Domestic Structure Plus Foreign Subsidiary

Domestic Structure Plus Foreign Subsidiary

8-8Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 9: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Integrated Global StructuresIntegrated Global Structures

International DivisionInternational Division Global Functional Structure

Global Functional Structure

Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 8-98-9

Organized along functional, product, or geographic lines

IBM World Trade

Pepsi Cola International

Organized along functional, product, or geographic lines

IBM World Trade

Pepsi Cola International

Designed on the basis of the company’s functions

Allows for functional specialization and economies of scale

Designed on the basis of the company’s functions

Allows for functional specialization and economies of scale

Page 10: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Integrated Global Structures:Global Product (Divisional)

Structure

Integrated Global Structures:Global Product (Divisional)

Structure

8-10Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 11: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Integrated Global Structures:Global Geographic (Area)

Structure

Integrated Global Structures:Global Geographic (Area)

Structure

8-11Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 12: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Organizing for GlobalizationOrganizing for Globalization

8-12Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 13: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Organizing for GlobalizationOrganizing for Globalization

8-13Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 14: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Organizing for GlobalizationOrganizing for Globalization

8-14Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 15: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Management Focus: Proctor & Gamble’s “Think Globally—Act

Locally” Structure

Management Focus: Proctor & Gamble’s “Think Globally—Act

Locally” StructureP&G’s Global/Local

StructureP&G’s Global/Local

StructurePhilosophy

8-15

Global business units

Market Development Organizations (MDO)

Global Business Services (GBS)

Corporate functions

Global business units

Market Development Organizations (MDO)

Global Business Services (GBS)

Corporate functions

Think globally

Act locally

Enabling P&G to win with customers and consumers

Be the smartest/best

Think globally

Act locally

Enabling P&G to win with customers and consumers

Be the smartest/best

Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 16: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Interorganizational NetworksInterorganizational Networks

8-16Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 17: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Global E-Corporation Network Structure

Global E-Corporation Network Structure

8-17Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

EXHIBIT 8-6 The Global E-Corporation Network Structure

Page 18: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Transnational Corporation (TNC)

Network Structure

Transnational Corporation (TNC)

Network Structure

8-18Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

EXHIBIT 8-7 Dell’s Value Web Model

Page 19: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Matrix Structure and Transnational Company:

Coordination and Control System

Matrix Structure and Transnational Company:

Coordination and Control System Attempts to combine:

The capabilities and resources of a multinational corporation

The economies of scale of a global corporation

The local responsiveness of a domestic company

The ability to transfer technology efficiently typically of the international structure

Attempts to combine: The capabilities and resources of a

multinational corporation The economies of scale of a global

corporation The local responsiveness of a

domestic company The ability to transfer technology

efficiently typically of the international structure

8-19Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 20: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Choice of Organizational FormChoice of Organizational Form

8-20Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

EXHIBIT 8-8 Organizational Alternatives and Development for Global Companies

Page 21: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Organizational Change and Design

Needed When:

Organizational Change and Design

Needed When:

8-21Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Page 22: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Locus of Decision Making in an International Organization

Locus of Decision Making in an International Organization

8-22Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

EXHIBIT 8-11 Locus of Decision Making in an International Organization

Page 23: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Control Systems for Global Operations

Control Systems for Global Operations

Direct Coordinating Mechanism

Indirect Coordinating Mechanism

Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 8-23

McDonald’s in MoscowProblem: quality

controlSolution: built

processing plant in Moscow and provided managerial training

Other options: visits by head-office personnel and regular meetings

McDonald’s in MoscowProblem: quality

controlSolution: built

processing plant in Moscow and provided managerial training

Other options: visits by head-office personnel and regular meetings

Examples: sales quotas, budgets, and financial tools and reports

Three financial statementsOne for accounting

standards in host country

One for the standards in the home country

One for consolidation

Examples: sales quotas, budgets, and financial tools and reports

Three financial statementsOne for accounting

standards in host country

One for the standards in the home country

One for consolidation

Page 24: PowerPoint by: Mohamad Sepehri, Ph.D. Jacksonville University 8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall

Managing Effective Monitoring Systems

Managing Effective Monitoring Systems

8-24Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall