International organization design

Июль 29, 2022

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International organization design

Содержание

2. Objectives Define and discuss the nature of international organization design and identify and describe the initial
3. Country culture Size Factors Affecting Design Strategy Technology Environment Organization Design Organization design (or organization structure)
4. Functional knowledge Product knowledge Types of Knowledge Affecting Design Area knowledge Functions of Firm Design Allocates
5. FORMS of Global Organization Design Product Area Functional Customer Matrix
6. Managerial Philosophies Affecting Design Ethnocentric Geocentric Polycentric firms that operate internationally the same way they do
7. Global Product Design The global product design assigns worldwide responsibility for specific products or product groups
8. Samsung’s Global Product Design
9. Global Area Design The global area design organizes the firm’s activities around specific areas or regions
10. Global Area Design
11. Global Functional Design The global functional design calls for a firm to create departments or divisions
12. Global Functional Design
13. Global Customer Design The global customer design is used when a firm serves different customers or
14. Eastman Kodak’s Global Customer Design
15. Global Matrix Design A global matrix design, the most complex of designs, is the result of
16. Global Matrix Design
17. Global Hybrid Design Most firms create a hybrid design, rather than pure design, that best suits
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Objectives
Define and discuss the nature of international organization design and identify

and describe the initial impacts of international business activity on organization design
Identify and describe five advanced forms of international organization design and discuss hybrid global designs
Identify and describe related issues in global organization design

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Country
culture
Size
Factors Affecting Design
Strategy
Technology
Environment
Organization Design
Organization design (or organization structure) is the overall

pattern of structural components and configurations used to manage the total organization

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Functional
knowledge
Product
knowledge
Types of Knowledge Affecting Design
Area
knowledge
Functions of Firm Design
Allocates organizational

resources
Assigns tasks to its employees
Informs employees about firm’s rules, procedures, and expectations
Collects and transmits information

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FORMS of Global Organization Design
Product
Area
Functional
Customer
Matrix

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Managerial Philosophies Affecting Design
Ethnocentric
Geocentric
Polycentric
firms that operate internationally the same way they

do domestically

firms that operate internationally the same way they do domestically

firms that analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve

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Global Product Design
The global product design assigns worldwide responsibility for specific

products or product groups to separate operating divisions within a firm

Advantages
Managerial expertise
Production efficiencies
Production flexibilities
Flexible response to change
Marketing flexibility

Disadvantages
Unnecessary duplication
Coordination and cooperation difficult

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Samsung’s Global Product Design

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Global Area Design
The global area design organizes the firm’s activities around

specific areas or regions of the world.

Disadvantages of Global Area Design

Firm may sacrifice cost efficiencies
Diffusion of technology is slowed
Design unsuitable for rapid technological change
Duplication of resources
Coordination across areas is expensive

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Global Area Design

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Global Functional Design
The global functional design calls for a firm to

create departments or divisions that have worldwide responsibility for the common organizational functions—finance, operations, marketing, R&D, and human resources management.

Advantages
Transference of expertise
Highly centralized control
Focused attention of key functions

Disadvantages
Practical only when firm has few products or customers
Coordination difficult
Duplication of resources

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Global Functional Design

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Global Customer Design
The global customer design is used when a firm

serves different customers or customer groups, each with specific needs calling for special expertise or attention.

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Eastman Kodak’s Global Customer Design

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Global Matrix Design
A global matrix design, the most complex of designs,

is the result of superimposing one form of organization design on top of an existing, different form

Advantages
Brings together the functional area and product expertise
Promotes organizational flexibility
Provides access to all advantages of other designs

Disadvantages
Appropriate for firms with many products and unstable environments
Employees accountable to multiple supervisors
Decisions may take longer

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Global Matrix Design

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Global Hybrid Design
Most firms create a hybrid design, rather than pure

design, that best suits their purposes, given the firms’ size, strategy, technology, environment, and culture, and blends elements of all the designs discussed.

International organization design

Содержание

ObjectivesDefine and discuss the nature of international organization design and identify

CountrycultureSizeFactors Affecting DesignStrategyTechnologyEnvironmentOrganization DesignOrganization design (or organization structure) is the overall

FunctionalknowledgeProduct knowledgeTypes of Knowledge Affecting DesignArea knowledgeFunctions of Firm DesignAllocates organizational

FORMS of Global Organization DesignProductAreaFunctionalCustomerMatrix

Managerial Philosophies Affecting DesignEthnocentricGeocentricPolycentricfirms that operate internationally the same way they

Global Product DesignThe global product design assigns worldwide responsibility for specific