Organizational Design Strategy in Changin Globe


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Organizational Design Strategy in Changin Globe

  1. 1. Organizational Design and Strategy in a Changing Global Environment Presenter : Eba ( Asia University , Taichung city, Taiwan
  2. 2. A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. Winston Churchill
  3. 3. Section 1 Organizational Design & Stratey
  4. 4. Key words <ul><li>Organization, Business Organization </li></ul><ul><li>Organization’s Core Competences </li></ul><ul><li>Strategy-Organization Strategy </li></ul><ul><li>Domain-Core Domain </li></ul><ul><li>Functional and Organizational Resources </li></ul><ul><li>Organizational Design, Structure </li></ul><ul><li>Low-Cost Strategy and Differentiation Strategy </li></ul><ul><li>Changing Globe or Globalization </li></ul>
  5. 5. What is Business Organization? + VALUE + VALUE
  6. 6. Core competences Difference of added value input+ VALUE = output input+ value = output
  7. 7. What is strategy ? What is Organization’s Strategy ? … Market strategy…. Military Strategy…. Country’s Strategy…
  8. 8. The High class Car market The Leader Company of High class Car Market Core Competition Core Competition decision1 decision1 Organization Strategy is a process Mercedes Benz Company Competitor XXX Company
  9. 9. Organizational resources Organizational resources Functional resources <ul><li>Skills of top management team </li></ul><ul><li>The vision of its founders, CEO </li></ul><ul><li>Scarce resources/Land ,capital, equipment/ </li></ul><ul><li>Company’s brand name & Corporate reputation </li></ul><ul><li>Skills of organization’s functional personnel </li></ul>Coordination abilities Mercedes Benz Company
  10. 10. Organizational Domain and Core Domain Which domain can WE do business ?
  11. 11. Organizational Domain and Core Domain OK…Car industry, specially the highest class car
  12. 12. Organizational Structure and Culture follow organizational strategy Organization Structure <ul><li>Mechanistic Structure </li></ul><ul><ul><li>Centralized Decision </li></ul></ul><ul><ul><li>making </li></ul></ul><ul><ul><li>Low differentiation </li></ul></ul><ul><ul><li>Low integration </li></ul></ul><ul><li>Organic Structure </li></ul><ul><ul><li>Decentralized Decision </li></ul></ul><ul><ul><li>making </li></ul></ul><ul><ul><li>High differentiation </li></ul></ul><ul><ul><li>High integration </li></ul></ul>1 p – 230 USD Business Organization Low-Cost Strategy Differentiation Strategy
  13. 13. Four Level of Organization strategy Global Strategy Corporate-Level Strategy Business-Level Strategy Functional-Level Strategy
  14. 14. Four Level of Organization strategy Functional-Level Strategy <ul><li>Responsible: Managers of Depts </li></ul><ul><li>Lower-Cost OR differentiate product </li></ul>Manufacturing Sales R & D Mechanistic structure Organic structure Manufacturing Sales R & D Tall organization Flat organization Manufacturing Sales R & D Centralized decision making Decentralized decision making Manufacturing Sales R & D Standardization Mutual adjustment
  15. 15. Four Level of Organization strategy Business-Level Strategy <ul><li>Responsible: Top Management Team </li></ul><ul><li>Choose Domain, Core Domain </li></ul><ul><li>Develop Core Competences </li></ul><ul><li>Lower-Cost OR differentiate product </li></ul>
  16. 16. Four Level of Organization strategy Corporate-Level Strategy <ul><li>Responsible: Top Management Team, </li></ul><ul><li>Board of Director, CEO </li></ul><ul><li>Develop Core Competences </li></ul><ul><li>Protect and Enlarge its existing Domain </li></ul><ul><li>Expand into NEW DOMAINS </li></ul><ul><li>Lower-Cost OR differentiate product </li></ul>
  17. 17. Corporate-Level Strategies For Entering New Domain Input Domain (Iron industry, Tire industry) Unrelated Domain (Bank, Travel company…etc) Output Domain (Repair service, Car insurance) Related Domain (Cheapest car industry, Motorcycle) Mercedes Benz Company (High class car industry)
  18. 18. Four Level of Organization strategy Global Strategy <ul><li>Responsible: Top Management Team, </li></ul><ul><li>Board of Director, International </li></ul><ul><li> branches, CEO </li></ul><ul><li>Develop Core Competences </li></ul><ul><li>in international market </li></ul><ul><li>Manage that different product across </li></ul><ul><li>different countries </li></ul><ul><li>Find to low cost area and countries </li></ul>
  19. 19. Global Matrix Structure Canadian Division Automobile product group Chemicals product group Consumer goods product group North American Area United States Division Mexican Division European Area British Division French Division Pacific Area Japanese Division T aiwan Division
  20. 20. Section 2 Globalization
  21. 21. Question : What is the definition of Globalization ? Answer : Princess Diana’s Death? Question : How come? (Why?)
  22. 22. Answer : An English Princess with an Egyptian boyfriend crashes in French tunnel, Driving a German car with Dutch engine,
  23. 23. Driving a Belgian who was drunk Scottish whisky, followed closely by Italian Paparazzi on Japanese motorcycle,
  24. 24. treated by an American doctor Using Brazilian medicines. This story is presented to you by Mongolian Using Bill Gate’s technology
  25. 25. And you are reading this on my computer (projector) that uses Taiwanese chips and a Korean display, assembled by Bangladesh workers
  26. 26. In a China plant transported by Malaysian ships to Taiwan. That is simple definition of Globalization .
  27. 27. Outsourcing In sourcing Fabless
  28. 28. In sourcing Company Outsourcing Company Fabless Company Organization in the Globalization Nike Co.,LTD “ XXX” TEXTAIL COMPANY Order: 1,000,000 sports shoes Products: 1,000,000 sports shoes
  29. 29. THANK YOU