Uni t-3STANDARDI ZATI ONVS •Globalpr oductdi visionsi ncl udedomest i

cdi visions Uni t

-5TYPESOFCONFLI CTS• Ont hebasi sof
DI FFERENTI ATI ON• St andar dizat ionand thatar eal lowedt ot akegl obal responsi bilityf or i
nv olv ement i.int ra- or gani zat ional ii.int er-
diff er ent iat ionar et het wosi desofgl obal izat ion.By productgr oups.Thesedi visionsoper at easpr of i
t or gani zat ional .•Ont hebasi sofscopei .af fect iv e
standar di zat ion, wemeant oshowt hegl obal center s. Adv ant ages. •Hel psmanagepr oduct , conf lictii.Subst ant i
v econf lict TYPESOF
repr esent at ion, whi l
edi ff er ent iat i
onl ooksuponl ocal technol ogy , cust omerdi versi ty •
Abi l
ityt ocat ert ol ocal CONFLI CTS• Ont hebasi sofi nv ol vement i.i ntr a-
compet itiv eness.Thef ollowi ngf igur edepi ct show needs• Mar ket ing, product i
on, andf inanceget sa or gani zat ional ii
.i nt er -or gani zat ional .•Ont hebasi sof
standar di zat iondi ffer sf rom di ffer ent iat i
on. FACTORS coor dinat edappr oachonapr oduct -by -pr oduct ,global scopei .af fect iveconf lictii.Subst ant iveconf lict .•On
THATAFFECTSTRATEGI COPTI ONS. Ther ear emany basis. Disadv ant ages. •Dupl i
cat ionoff aci li
t i
esand thebasi sofr esul t si.Const ruct iv econf l
ict si i
.
fact or st hatneedt obet akencar eofwhi lechoosi ng staffper sonnelwi thindi visions. GLOBALAREA Dest ruct i
v econf lict s• Ont hebasi sofshar ingby
thebestpossi bl est r ategi copt ions.Themost DIVISI ON•Gl obal ar eadi vi
sionst ruct ur ei susedf or gr oupsi .Compet itiv econf lictii.cooper at i
v e
i
nf luent ial onesar et hef ollowi ng−•Ext ernal oper at i
onst hatar econt roll
edonageogr aphi cr at her conf lict•Ont hebasi sofSt r ategy •Ont hebasi sof
Const raint s  −Thesur v i
v al andpr osper ityofa thanapr oductbasi s.Fi rmsi nmat ur ebusi nesseswi t
h right sandi nter est s• Ont hebasi sofr esul tsi.
busi nessf irmi sf ul l
ydependentoni nt er act ionand selectpr oductl inesusei t.
Adv ant ages. •Inter nat i
onal Const ruct i
v econf lict sii.Dest ruct iv econf lict s• Ont he
communi cat ionwi tht heel ement st hatar ei nt rinsi ct o oper at i
onsanddomest icoper ationsr emai natt he basi sofshar ingbygr oupsi .Compet itiveconf lict ii.
thebusi ness.I ti ncl udest heowner s, cust omer s, samel ev el•Gl obal div i
sionmanager smanage cooper ativ econf li
ct •Ont hebasi sofSt r
at egy • Ont he
suppl ier s, compet itor s, gov er nment , andt he businessoper ationsi nsel ect edgeogr aphi car ea• basi sofr ight sandi nt er est s.SOURCESOF
stakehol der soft hecommuni ty .•I nt ra- or gani zat ional Abi l
i
tyt or educecostperuni tandpr i
ce CONFLI CT: ✔Communi cat i
onf ai lur e✔ Per sonal ity
For ces  −Thebi gdeci sionsofacompanyar eof ten compet itivel y .
Di sadv ant ages. •Di fficul tt oal i
gn conf lict✔ Val uedi ffer ences✔ Goaldi ffer ences✔
i
nf luencedbyt hepower -pl ayamongv ar iousi nter est productemphasi si nageogr aphi cal lyor i
ent ed Met hodol ogi cal dif fer ences✔ Subst andar d
gr oups.Thest rat egi cdeci sion- maki ngpr ocessesar e manner .•NewR&Def for t
sar eof teni gnor ed, assal e per for mance✔ Lackofcooper at ion✔ Di ffer ences
noexcept ion.I tdependsont hest rat egi cchoi ces i
nmat ur emar ket. GLOBALFUNCTI ONAL regar di ngaut hor ity ✔ Di ffer encesr egar di ng
madebyt hel owerManagementandt opnot ch DIVISI ON. Thi sst ruct ur eist opr imar il
yor gani zegl obal responsi bi l
ity .CONFLI CTMANAGEMENT• av oi dance
str at egi cmanagementpeopl e. •Val uesand oper at i
onsbasedonf unction; pr oductor i
ent ationi s st rategy •accommodat ionst rat egy •Compet it
ion
Pr ef er encest owar dsRi sk  −Val uespl ayav ery secondar yf orf ir
msusi nggl obalf unct iondi vision •Compr omi se• col labor ationst r at egy .FIVEA’ S
i
mpor t antr ol e, Ithasbeenobser vedhatt he struct ure. Adv ant ages. •Itemphasi zesonf unct ional TECHNI QUE•Bor isof fandVi ct ori dent ifyf iv est epsi n
successf ul manager shav eamor epr agmat ic, l
eader shi p, cent ralized- cont rol ,andl eanermanager ial theconf lictmanagementpr ocesst hatt heycal ledt he
i
nt er act iveanddy nami cpr ogr essi veandachi ev ement staff.•Fav or abl ef orf i
r mst hatr equi reat ight , "fiveA' s"ofconf lictmanagement−•assessment , •
seeki ngv al ues.Ther i
skt aker si nt hehi gh- gr owt hl ess centr alizedcoor di nat i
onandcont rolov eri ntegr ated acknowl edgement , •at titude, •act ion, and•
-stabl emar ket spr ef ert obet hepi oneer sor product ionmechani sms. •Hel pst hosef irmst hatneed anal ysi s.NEGOTI ATI ON•Negot iat ion  hasbeendef ined
i
nnov at or s.Theyseekanear lyent ryi nt onew, tot r
anspor tpr oduct sandr awmat er ialsbet ween asanyf or m ofdi rectori ndi rectcommuni cat ion
unt appedmar ket s.FACTORSTHATAFFECT geogr aphi car eas. Disadv ant ages. •Notsui tabl ef oral l wher ebypar tieswhohav eopposi ngi nter est sdi scuss
STRATEGI COPTI ONS•I mpactofPastSt rat egi es  −A typesofbusi nesses.Appl i
cabl et oonl yoi l andmi ning thef or m ofanyj oi ntact i
onwhi cht heymi ghtt aket o
str at egymadeear liermayaf fectt hecur rentst rat egy fir
ms•Di ff icul tt ocoor dinatemanuf act uringand manageandul timat ely  resol ve  the  disput e  bet ween
too.Pastst rat egi esar et hest ar ti
ngpoi ntofbui lding mar ket i
ngpr ocesses•Managi ngmul tipl epr oduct themROLEOFI NTERNATI ONALORGANI ZATI ONS
upanewst rategi es. •Ti meConst raint s −Ther emay l
inescanbechal lengi ng, aspr oduct ionandmar ket i
ng (IMF, WORLDBANK, ANDWTO) .
INTERNATI ONAL
bedeadl inest obemet .Ther emaybeaper iodof arenoti nt egr ated. MI XEDMATRI X•Thi sst r uct ur e MONETARYFUND( IMF) •Topr omot ei nt er nat i
onal
commi tment ,whi chwoul dr equi reacompanyt ot ake combi nesgl obal pr oduct ,area, andf unct i
onal monet ar ycooper at ion•Tof aci li
t atet heex pansi on
i
mmedi at eact ion. •I nf or mat i
onConst raint s  −The arrangement sandi thasacr oss- cut t
ingcommi ttee andbal ancedgr owt hofi nter nat ional trade•To
choi ceofast r at egydependsheav ilyont he struct ure. Adv ant ages. •Canbedesi gnedt omeet pr omot eexchangest abi lity•Toassi sti nt he
av ai labi lityofi nf or mat ion.Acompanycandealwi th i
ndi vidualneeds•Pr omot esani nt egr at edst rategi c est abl ishmentofamul t i
lat eral sy st em ofpay ment s•
uncer tai nt yandr isksdependi ngont heav ailabi lit
yof appr oacht ailor edt ol ocal needsand Togi veconf idencet omember sbymaki ngt he
i
nf or mat i
onati tsdi sposal .Lessert heamountof priorities.Di sadv ant ages. •Compl exst ruct ur e, gener alr esour cesoft heFundt empor arilyav ailabl eto
i
nf or mat i
on, gr eat ert hepr obabi li
tyofr isks. • coor dinat i
ngandget tingev er yonet owor kt owar d them underadequat esaf eguar ds•Toshor tent he
Compet itor ’
sRi sk  −I ti si mpor tantt owei ght he commongoal sbecomesdi fficul t.
•Toomany dur at ionandl essent hedegr eeofdi sequi l
ibr ium i n
str at egi cchoi cest hecompet itor smayhav e.A i
ndependentgr oupsi nt hest ruct ure. thei nt ernat ional bal ancesofpay ment sof
compet itorwhoadopt sacount er -st rat egymustbe member sWORLDBANK•TheWor l
dBanki sav i
t al
takeni nt oaccountbyt hemanagement .The sour ceoff inanci alandt echni cal assi stancet o
l
ikel i
hoodofacompet itor ’sst rengt ht or eactandi ts Uni t-4SCALEOFOPERATI ONS•Economi esofscal e dev elopi ngcount riesar oundt hewor ld.•Wear enota
pr obabl ei mpactwi l
l influencet hest r at egi c canbecl assi fiedi nt ot womai nt ypes: 1.I nt er nal – banki nt heor di nar ysensebutauni quepar tner shi pt o
choi ces. GLOBALPORTFOLI OMANAGEMENT•Gl obal arisingf rom wi t hint hecompany ;and2.Ext er nal – reducepov er tyandsuppor tdev elopment .We
Por tfol ioManagementI S  al soknownas  Int er nat i
onal arisingf rom ext raneousf act or ssuchasi ndust rysi ze. compr iset woi nst itut ionsmanagedby188member
Por tfol ioManagement  
or  For eignPor tfol io Economi esofScal eandI nter nat ionalTr adeAl though count ries: theI nt er nat i
onal Bankf orReconst r uct i
on
Management , ref erst ogr oupi ngofi nv est mentasset s economi stswr ot eaboutt heseef fect sl ongago, andDev el opment( IBRD)andt heI nt er nat ional
from i nter nat ional orf orei gnmar ket sr at hert hanf rom model soft r adedev elopedaf t
ert he1980si ntr oduced Dev el opmentAssoci at i
on( IDA) .TheI BRDai mst o
thedomest icones.Theassetgr oupi ngi nGPM mai nl
y economi esofscal ei ncr eat ivenewway sandbecame reducepov ertyi nmi ddl e-incomeandcr edi twor thy
focusesonsecur ities.Themostcommonexampl es knownast he“ NewTr adeTheor y .
Makeorbuy poor ercount ries, whi leI DAf ocusesexcl usi v elyont he
ofGl obalPor tfol ioManagementar e−•Shar e deci si on.Def init i
on:Theactofchoosi ngbet ween wor ld’spoor estcount ries.Thesei nst it
ut ionsar epar t
pur chaseofaf or eigncompany •Buy ingbondst hat manuf act ur ingapr oducti n-houseorpur chasi ngi t ofal ar gerbody knownast heWor l
dBankGr oup. •
ar ei ssuedbyaf or eigngov er nment •Acqui ringasset s from anext ernalsuppl ier .I namake-or -
buydeci sion, Toget hert heset woi nst i
tut ionspr ov i
del ow- int er est
i
naf or ei gnf irmFACTORSAFFECTI NGGLOBAL thet womosti mpor tantf act orst oconsi derar e1. l
oans, inter est -freecr edi tsandgr ant st odev el opi ng
PORTFOLI OI NVESTMENT•Gl obal Por tf olio Costand. 2.Av ailabi lityofpr oduct ioncapaci ty.An count riesf orawi dear rayofpur posest hati ncl ude
Management( GPM)r equi r esanacut eunder standi ng ent er pr i
semaydeci det opur chaset hepr oductr ather i
nv est ment si neducat ion, heal th, publ i
c
oft hemar keti nwhi chi nv est menti st obemade.The thanpr oduci ngi t, ifischeapert obuyt hanmakeori f admi nist rat ion, inf rast ruct ur e, financi alandpr ivat e
maj orf inanci al f act or soft hef or eigncount ryar et he i
tdoesnothav esuf fici entpr oduct ioncapaci tyt o sect ordev elopment , agr icul tur e, andenv ironment al
fact or saf f ect i
ngGPM.Thef ol lowi ngar et hemost producei tin- house. •TheAdv ant agesofBuy. andnat ur al r
esour cemanagement .WORLDTRADE
i
mpor t antf act or st hati nf luenceGPM deci si onsTax Strat egi cf lexi bility.Lowercost s Of fset s Tr ade- ORGANI ZATI ON( WTO) •TheWor ldTr ade
Rat es•Taxr atesondi videndsandi nt er estear nedi sa offs St rat egi cal lianceswi thsuppl ier s•The Or gani zat ion( WTO)i st heonl yi nt er nat ional
maj ori nf luencerofGPM.I nv est or susual lychooset o Adv ant agesofMake Lowercost s Faci li
tat ing or gani zat iondeal ingwi t ht hegl obal r ulesoft rade
i
nv esti nacount rywher et heappl iedt axesont he speci al i
zedi nv est ment s Pr opr ietar ypr oduct bet weennat ions.I tsmai nf unct i
oni st oensur et hat
i
nt er estear nedordi v i
dendacqui redi sl ow.I nv est or s technol ogypr ot ect ion.I mpr ov edschedul ing. Gl obal tradef lowsassmoot hl y ,pr edi ct abl yandf reel yas
nor mal lycal cul at et hepot ent ial af ter -taxear ni ngs suppl ychai ni ssues•Suppl ychai nmanagement( SCM) possi bl e.•Wher ecount r i
eshav ef acedt radebar r i
er s
theywi ll secur ef r om ani nv est mentmadei nf or eign i
s" thesy st emi c, st rat egi ccoor dinat ionoft he andwant edt hem l ower ed, thenegot iationshav e
secur ities. Int er estRat es•Hi ghi nt er estr at esar e tradi tionalbusi nessf unct ionsandt het act i
csacr oss hel pedt oopenmar ket sf ort rade.Butt heWTOi snot
alway sabi gat tract ionf ori nv est or s.Moneyusual ly thesebusi nessf unct ionswi t hinapar ticul arcompany j
ustaboutopeni ngmar ket s, andi nsome
flowst ocount riest hathav ehi ghi nt er estr ates. andacr ossbusi nesseswi thi nt hesuppl ychai n, fort he circumst ancesi tsr ul essuppor tmai nt aini ngt r ade
Howev er ,t hel ocalcur renci esmustnotweakenf or pur posesofi mpr ov ingt hel ongt er m per for manceof bar rier s—f orexampl e, topr ot ectconsumer sor
l
ong- ter m aswel l.FACTORSAFFECTI NGGLOBAL thei ndi vidual compani esandt hesuppl ychai nasa pr ev entt hespr eadofdi sease. Wor l
dCust oms
PORTFOLI O. INVESTMENT. ExchangeRat es•When whol e. Funct ionsofSuppl yChai nManagement Mai n Or gani zat ionI nter nat ionalChamberofCommer ce•
i
nv est or si nv esti nsecur itiesi nani nt er nat ional funct i
onsofSuppl yChai nManagementar eas Uni tedNat ionsConf er enceonTr adeand
count ry ,t hei rr et ur ni smost lyaf fect edby−•The follows:I nv ent or yManagement Di st ribut ion Dev el opment Int er nat ionalMar itimeOr gani z at ion•
appar entchangei nt hev al ueoft hesecur ity .
•The Management Channel Management Pay ment Inter nat i
onal Ai rTr anspor tAssoci at ion•I nt ernat ional
fluct uat ionsi nt hev alueofcur rencyi nwhi chsecur ity Management Fi nanci alManagement Suppl ier Or gani zat ionf orSt andar di zat ion•Uni tedNat ions
i
smanaged. •Inv est or susual l
yshi ftt hei ri nv est ment ManagementTr anspor t
at ionManagement Commi ssi ononI nt er nat i
onal Tr adeLaw
whent hev alueofcur rencyi nanat iont heyi nv est Cust omerSer viceManagement. GLOBALSUPPLY
weakensmor et hanant i
ci pat ed. CHAI NMANAGEMENT• A" suppl ychai n"r efer sto
thecol lect ionofst epst hatacompanyt akest o
transf or mr awmat er i
al component si nt oaf i
nal
ORGANI ZATI ONALSTRUCTURESAnyi nter national productt hati sdel iver edt ocust omer s.Ty pical l
y ,
busi nessor gani zat ion, dependi ngoni tsr equi r
ement s suppl ychai nmanagementhasf ivest ages:pl an, make,
andoper at i
ons, woul dhav eanor gani zat ionst ruct ure sour ce, del i
v erandr et ur n.•Thegl obal suppl ychai n
tost reaml ineal li
tspr ocesses.I nt hissect ion, wewi l
l managementmaj orf ocusesongl obal busi nessand
tryt ounder st andsomeoft hemaj ort y pesof prepar esst udent sf orsuccess.  
QUALI TY
organi zat ionalst r
uct ure.INI TIALDI VISI ON CONSI DERATI ONSI NI NTERNATI ONAL
STRUCTURES• Initial div i
sionst r uct uresar ecommon BUSI NESS1. EngagementModel s. 2. Ser viceLev el
i
nsubsi diar ies, expor tfirms, andon- site Agr eement s( SLAs)3. Mobi lizat i
on4. Int egr at i
onwi th
manuf act ur er s.Subsi diaries  thatf ollowt hiskindof othert hirdpar tyser v icepr ov i
der s5. Communi cat i
on
organi zat ionst ruct urei ncludef irmswher et hemai n 6.Flexi bilityandScal abi li
ty7. Qual ityI mpr ov ement
expor tisexper t i
se, f orexampl e, consul tant sand 8.Conf igur at ionandChangeManagement
fi
nanci al f
irms.  
Expor tfirms  incl udet hosehav ing 9.Int ellect ual Pr oper tyPr ot ect ion10. Secur ity.Sev en
technol ogi cal lyadv ancedpr oduct sand Consi der at ionsf orI nt er nat ionalLi censi ng Br and
manuf act ur inguni ts.Compani eshav i
ng  on- sit
e i
dent ity Sel ect i
ngal icensee Li censegr ant
manuf act ur ingoper ations  followt hisst ruct uret ocut Ter ritor y Roy altiesandot herpay ment s Appr ov als
downt hei rcost s.INTERNATI ONALDI VI SION andot hercont rol sTer m andt ermi nat ion
STRUCTURE. Thi sst ruct urei sbui l
tt ohandl eal l INTERNATI ONALMARKETI NGSTRATEGY•
i
nt ernat i
onal oper at i
onsbyadi visi oncr eat edf or Inter nat i
onal mar ket ingi nv olv est hemar ket ingof
cont rol .Iti sof tenadopt edbyf irmst hatar estillinthe goodsandser vicesout sidet heor gani zat ion` shome
dev elopmentst agesofi nter nat ionalbusi ness count r y.Mul tinat ional mar ket i
ngi sacompl exf or m of
oper at ions. Adv ant ages. •I
nt ernat i
onal attitudeget sthe i
nt er nat ional mar ket ingt hatengagesanor gani zat ion
attent ionoft opmanagement •Uni tedappr oacht o i
nmar ket i
ngoper at ionsi nmanycount r i
es.•Gl obal
i
nt ernat ionaloper at i
ons. Di sadv ant ages. •Separ ates mar ket ingr ef er st omar ket ingact ivitiescoor dinat ed
domest i
cmanager sf rom t hei ri nt ernat ional andi nt egr atedacr ossmul tiplemar ket s.Gl obal
count er par ts• Di ff
icul tyi nideat ingandact i
ng expansi oni sment ionedbel ow•Oppor tuni sticgl obal
strategi cal l
yandi nal l
ocat ingr esour ces mar ketdev el opment( div er sif yi
ngmar ket s)•
global l.GLOBALPRODUCTDI VI SI ON• Global pr
oduct Followi ngcust omer sabr oad( cust omersat isfact i
on) •
divisionsi ncl udedomest i
cdi visi onst hatar eallowed Pur sui nggeogr aphi cdi v er sificat i
on( climat e,
tot akegl obal responsi bil
ityf orpr oductgr oups.These topogr aphy , space, et c.)•Expl oitingdi ffer ent
divisionsoper at easpr of i
tcent er s.Adv ant ages. •Helps economi cgr owt hr at es( gai ningscal eandscope)•
managepr oduct ,
technol ogy , cust omer Expl oi tingpr oductl i
f ecy cl edi fferences( technol ogy )•
diver sity •Abi lityt ocat ert ol ocalneeds• Mar keting, Pur sui ngpot ent ialabr oad•Gl obal izingf ordef ensi ve
product ion, andf i
nanceget sacoor dinat edappr oach reasonsPur sui ngagl oball ogi cori mper at ive( new
onapr oduct -by -
pr oduct ,global mar ket sandpr of its)CHALLENGESI NPRODUCT
basi s.Di sadv ant ages• Dupl icat ionoff aciliti
esandst aff DEVELOPMENT•Cur rencyExchangeRat es•Nat ional
per sonnel wi thindi v isionsgl obal l.GLOBALPRODUCT Mar ketSi ze•Cul t ural Di ffer ences•Regul at ions.
DIVI SION