14 - Chapter 13 - The Organization of International...

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Chapter 13 -- The Organization of International Business In this chapter we build upon strategy and modes of entry and examine the structure firms take as they enter the process of internationalization that moves beyond exporting and into the arena of structured foreign direct investment, FDI to actively manage VACs . .. firms employ strategies, this is the active management . .. and these strategies must fit the environments in which the firms operate. For example, a firm's strategy may be based on selling one or a few commodity products and wish to set up (structure) operations based on geographical lines. Or it may have a lot of products and wish to set up operations based on product groups. Sometimes firms have tried the matrix to attempt to give voice to both country or regional managers and product managers at the same time. The matrix hasn't worked well; it generally looked like this: By now you know the various environments we speak of -- the legal, economic, social, cultural, political and industrial environments – all these can present myriad complexity for the firm as it internationalizes its VAC. The appropriate response depends on many
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14 - Chapter 13 - The Organization of International...

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