MGMT 650 Review Chapter 7-11

MGMT 650 Review Chapter 7-11 - Chapter 7-10 Alliances and...

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Chapter 7-10 Alliances and networking among companies, at home and abroad, and the application of the information technology give rise to boundaryless firms and contribute to the blurring of boundaries among firms. Globalization accelerates the regrouping and rearrangement of task and responsibilities within a firm in a way that facilitates flexibility, responsiveness, and agility. Organizational structure has four dimensions: Clustering of jobs (division of labor) Influence Coordination Integration Mintzberg (1983) proposes that there are certain forces that help to explain why organizations adopt a particular structure. Simple Structure. This is a centralized structure based on direct supervision. Strategic apex is the key part in designing the organization. Machine Bureaucracy. Professional Bureaucracy Divisional Form Adhocracy Barlett and Ghoshal (1992) suggest three configurations: Decentralized federation (multinational) Coordinated federation (international) Centralized hub (global) Four possible models of organization: Pyramid organization. Well-oiled machine Village market. Family organization International division structure. A company merges all international activities into one division Global structure Globalization, however, highlights new factors that have not only widened the existing range of alternative designs but also strengthened the flexibility, plasticity, and alternative of the structure. Centrality of customer desires in corporate priorities. Diminishing time and geographic utility as a limiting factor in corporate endeavors. Growing importance of alliances and networking Global self-awareness
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MNCs Under this arrangement, a company is structured in such a way as to give its units and subsidiaries maximum possible autonomy in their respective markets. International Firm This is a company that is structured to facilitate its growing or potential business abroad. Worldwide Company This type of firm is structured to achieve maximum operational efficiency by standardizing activities on a worldwide scale. Global Organization Global firms treat the whole world as their market. National boundaries are not a binding factor in their decisions. In the globalization era, firms become increasingly dependent on the flow of information
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This note was uploaded on 09/21/2011 for the course ECON 101 taught by Professor Flah during the Spring '10 term at Punjab Engineering College.

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MGMT 650 Review Chapter 7-11 - Chapter 7-10 Alliances and...

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