International And Global Companies

International Companies

• These companies;• Offer a very centralized management approach• Head office thinks of their plants in foreign countries as ‘satellite’ operations• Decisions are usually made at head office• There are usually some executives from head office in management at the

satellite operation• Majority of profits are brought back to the home country

International Companies

• Advantages (Benefits to this type of structure)• (you must list at least 2 advantages!)• Disadvantages (Drawbacks to this type of structure)• (you must list at least 2 disadvantages!)

Global Companies

• These companies;• Offer more of a decentralized management approach• The goal is to create a ‘stateless’ corporation that operates relatively freely

across international borders• Research and development can occur anywhere, not just at head office

Global Companies

• Advantages (Benefits to this structure)• Disadvantages (Drawbacks to this type of structure)