DESIGNING

ORGANIZATIONS FOR
THE INTERNATIONAL
ENVIRONMENT
Global Expansion
■ Economies of scale
■ Economies of scope
■ Low cost factors of
production
To become involved in
international operations:
■ Strategic alliances
Four Stages

■ Domestic orientation.
■ International orientation.
■ Multinational orientation.
■ Global orientation.
Challenges

■ Environmental complexity through differentiation.

■ Coordination within differentiated areas.
■ Transfer of information between units.
Organizational design for strategic goals

Geographic Product Matrix Hybrid

structure Structure structure structure
• Local needs •Standardization • Local and •Combination of
and cultures global needs two or more
structures
Coordination
mechanisms
■ Global Teams
■ Standardization (planning
and control)
■ Coordination roles