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ow u ure s o owe n eren
Economics :
Traditional Economy 1.Technology is not used in traditional
economies.2. Economic activities are usually centered toward the
family or ethnic unit.3. Examples of economies with this type of
culture are Malawi and Ivory
Coast in Africa and Burma in Asia.
Command Economy 1. Businesses are competition free and not run
to create a profit.2.Consumers have few choices in the market place
and Shortages arecommon because of poorly run factories .3.
Examples of command economies are The Peoples Republic ofChina,
North Korea and Cuba.
Market Economy 1. Individual freedom is considered very
important2. Economic decisions are made by the basic principals of
supply anddemand.3. There is competition among businesses and
Competition determinesprice which increase the quality of the
product.
4.Examples of market economy are U.S.A., U.K. and Canada.
Mixed economy 1.Both government and Individuals own means of
production.2.But govt. protects consumers and workers from unfair
policies.3. Most effective economy for providing goods and
services4.Examples of this economies are India ,Mexico and South
Africa.
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Authority and Accountability In Bosch- India, Bosch-U.S. and
Bosch- ChinaComparison of Bosch India Bosch U.S. Bosch China
Significantlydrives a directiveleadership style.
Leadership style isvery flexible, openand individualistic.
Leadership stylemostly resemblesan autocraticstyle.
Authority
Subordinates aremade known tothe nature of
decision problem.
Subordinates areviewed asgenerators of
alternative coursesof action or ofsolutions.
Subordinates aretreated solely asinformation givers
Accountability
High level ofbureaucracy andthere are high
number ofreporting systemsbut no strict
andspecificadministrativerules.
Due to either largesize and scope ofthe company
bureaucracy isinevitable here alsoand there is propersupervision
of thelower offices by thehigher ones.
principle of fixedand officialjurisdictional
areas, which aregenerally orderedby rules
oradministrativeregulations.
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Bosch India Bosch U.S. Bosch China
Responsibility
Responsibility ofsubsidiaries aremostly of operativequality
and
quantity and not inpurchase andexternal affairs.
Responsibility isgiven fordepartments suchas Research and
Development andcorporate Identity.
Responsibility ofsubsidiaries aremostly of operativequality and
quantity
and not in globaldecisions of globalexpansion.
Delegation
Authority isdelegated forroutine operatingdecisions but notfor
takingstrategic decisions..
Strategicdepartments suchas Research andDevelopment,Corporate
Identityetc. are delegatedto some specificsubsidiaries.
Authority isdelegated forroutine operatingdecisions likepersonal
sales ,accounting but notfor taking strategicdecisions in terms
of
production.
Responsibility and Delegation In Bosch- India, Bosch-U.S. and
Bosch- China.
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Power In Bosch- India, Bosch- U.S. and Bosch-
China
Bosch India Bosch U.S. Bosch China
Power Power iscentralized inGerman basedOffice and isdictated to
Indian
Headquater.
For operatingdecisions power isdecentralised butto retain
theauthority to make
strategicdecisions, poweris centralised inGermany.
From theperception ofthird partiesobjectively theyhave authority
to
meet clients, butsubjectively theywait for adecisions to betaken
fromGerman Office .
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