Professional Documents
Culture Documents
Introduction
Once an organization decides to go
international, it must begin to implement
the decision.
Some companies do so by simply shipping
their goods to a foreign market and having
a third party handle sales activates.
Organizational structures
The strategy sets forth the plan of Action,
but the structure is critical in ensuring that
the desired goals are met efficiently.
Arrangement, and a number of factors will
influence this choice, for example, firms
that are just getting into the international
arena are likely to choose a structure that
differs from that of firm’s seasoned
overseas operations. Conversely,
companies that use their structures as
worldwide sales organizations will have a
different arrangement from those that
locally manufacture and sell goods in
various international markets.
If a structure is proving to be unwieldy or
inefficient, it will be scrapped in favor of
one the addresses these problems.
International business 1
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
International business 2
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
International business 3
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
International business 4
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
International business 5
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
Mixed structure
A hybrid organization design that combines
structural arrangement in a way that best meets the
needs of the enterprise
Matrix structure
An organization that blends two organizational
responsibilities such as functional and product
structures or regional and product structures
The functional emphasis provides attention
to the activities to be performed, whereas
the product emphasis provides attention to
the good that is being produced.
This structure is characterized by a dual
command system that emphasizes both
inputs (functions) and outputs (products).
Three types of managers in this geocentric matrix
structure:
1. Regional managers, 2. Product managers, 3.
And matrix managers.
Regional managers in a geocentric matrix,
managers charged with selling products in their
geographic locale
International business 6
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
Advantages
One of the major advantages of the
multinational matrix is that it allows man
International business 7
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
International business 8
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
Organizational processes
Structure is designed to answer the question: what
is to be done?
The organizational process
Decision making
Communicating
And controlling
Decision making:
The process of choosing from among alternatives
Centralized decision making in overseas operations
such as marketing, policies, financial matters, and
decisions on production capacity
Ringsei or decision making by consensus:
This process is widely used in Japan
MNEs work to increase economies of scale and to
attain higher operational efficiency through
outsourcing, thus simplifying their structures and
delegating the authority for some operations to
their suppliers
Communication
The process of transferring meanings from sender
to receiver
International business 9
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Organizing Strategy Chapter # 9 (page 241-267).
Controlling
The process of deterring that everything goes
according to plan
This process is to reward performance and it
consists of three steps:
1. establishing standards
2. comparing performance against standards,
3. correcting deviations
International business 10
Alan M. Rugman, Richard M. Hodgetts