Organization and Control

Organization and Control - International Business...

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International Business November 22, 2010 Presented by: Professor Charles Skuba
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Critical organizational issues 1) The type of organization that provides the best framework for operational effectiveness 2) The optimal approach to implementing corporate strategy globally, regionally, and locally 3) The type and degree of control to be exercised from headquarters to maximize total effort. 2
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Organizational structure 3 broad categories of organizational design 1. Little or no structure 2. International division 3. Global organization 3
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Little or no formal organization Early stages of int’l development – int’l plays a minor role Int’l sales are often done on a case-by-case basis Typical in smaller companies, especially manufacturers 4
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International Division One unit with responsibility for all int’l activities Typically for companies that derive less than 1/3 of revenues from int’l souces Examples: Apparel companies Timberland (2 U.S. divisions and 1 Int’l) Kraft Foods 5
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Timberland international division 6
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Global organizational structures 1. Product (Kodak, Dura Automotive) 2. Area (banks, retailers, restaurant operations) http://www.aboutmcdonalds.com/mcd/our_company/bios.html 3. Function (small manufacturers) 4. Customer (services, smaller tech companies) 1. Mixed – or hybrid (Yum brands) http://www.yum.com/company/srofficers.asp 1. Matrix – Business units crossed with geographic and functional units 7
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Kodak product structure 8
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Dura Automotive –Product structure Shifter systems Cable systems Glass and trim systems Structural and safety systems 9
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Organization and Control - International Business...

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