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International Business
Environments and Operations
Part 5
Global Strategy, Structure, andImplementation
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Chapter 15
TheOrganization
ofInternational
Business
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Chapter Objectives
Profile the evolving understanding of organizing acompany for international business
Describe the antecedents and features of traditionalstructures
Describe the antecedents and features of
contemporary structures
Study the systems used to coordinate and controlinternational activities
Profile the role and characteristics of organization
culture Link the ideas of strategy and organization in the
international company
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Organizing Operations
Organizing is the process of creating
the structure, systems, and culture
needed to implement the companysstrategy.
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FactorsAffecting Organizing
Operations
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Change: The Critical Factor
Changes in the market environment and nature of work push
managers to rethink how they organize their workplace. Trends inducing change:
Expansion of International Business
Importance of Knowledge as a Competitive Advantage
The Internet as a Design Standard
Workplace Adjustments
Managerial Adjustments
Changing Social Contract
Global Credit Crunch and Rising Unemployment
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Organization Structure
Structure: formal arrangement of jobs within a
company that specifies roles, responsibilities,
and relationships
Vertical Differentiation
Horizontal Differentiation
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Vertical Differentiation
Centralization versus Decentralization in
Organizational Design
Centralization: degree to which high-levelmanagers make strategic decisions and
delegate them to lower levels for
implementation.
Decentralization: degree to which lower-
level managers make and implement
strategic decisions.
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Horizontal Differentiation
Functional Structure Advantages and Disadvantages
Divisional Structure International Division Product Division
Geographic Division
Matrix Structure Unity of Command Principle
Mixed Structure
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Contemporary Structures
Network Structure
Virtual Organization
Pitfalls of Contemporary Structures
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Coordination and Control Systems
Approaches to Coordination:
Standardization
Plan
Mutual Adjustment
Control Methods:
Market Bureaucratic
Clan
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Control Tools
Reports
Visits to Subsidiaries
Cost and Accounting Comparisons
Evaluative Metrics
Information Systems
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Organization Culture
The Importance of Culture
Culture and Values
Culture and the Value Chain
Challenges and Pitfalls
Organization Culture and Strategy
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Future: The Role and Rise ofCorporate Universities
Managers believe companies mustpurposefully develop shared values
Worldwide, more than 1,000 new corporate
universities have begun operations Corporate universitiesphysical and virtualinstitutions that: Lead training efforts
Facilitate learning Help upgrade competencies
While advocating the philosophical ideals of thecompanys culture
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