3. The Factors: Globalization stimulated association members A new approach is needed International markets offer untapped opportunities
4. The Global Strategic Planning Process Clearly define the common mission Adopt a global governance policy Indentify global strategic objectives Develop regional structures and strategies
5. The Global Strategic Planning Process Gather input and feedback on a local level Identify those issues that are common universally Develop your implementation strategy
8. Changes in Organizational Forms Reduction of middle management Restructuring of work processes Empowerment of employees Computers for instant communication
9.
10. Types of Controls in an International Company A management contract Control of the finances Control of the technology Important executive positions
11.
12. References http://powerpointfree.com/free-powerpoint-templates-artistic-3.html http://www.flickr.com/photos/29233033@N06/3105135663/ http://www.equa-net.com/services/images/strategic_planning.gif http://www.novamind.com/planning/mind-maps/strategic-planning-4-650.png http://agshq.i4a.com/files/public/Successful_Global_Strategies.pdf www2.fh-dortmund.de/deindex.php Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006). International business: The challenge of global competition (10th ed.). New York: McGraw-Hill
Editor's Notes
Hello ladies and gentlemen,My name is Kathrene Borden and the director of my department has asked me to put together a “lunch &learn” presentation. This presentation will focus on the concepts of international strategy and organizational design.
“An increasing number of U.S.-based associations are facing an urgent need to create a successful strategy for international programs and activities. This trend is being driven by one or more factors:” http://agshq.i4a.com/files/public/Successful_Global_Strategies.pdfhttp://www.flickr.com/photos/29233033@N06/3105135663/
“Globalization has stimulated association members to demand more international reach from their trade or professional association as the members themselves are faced with international issues. The association may have been active internationally for any number of years butthe results have not met expectations and a new approach is needed. In the search for growth, international markets offer the best untapped orunderdeveloped opportunities for programs, services, and non-dues revenues.” http://agshq.i4a.com/files/public/Successful_Global_Strategies.pdf
“Clearly identify the common mission that applies to the membership base universally. (What is the highest common professional or industry long term mission?) Adopt a global governance policy that defines the roles and responsibilities of the board, staff, and volunteers.Identify global strategic objectives/key performance indicators and balanced scorecard measurements (i.e., how will you define success?)Develop regional structures and strategies mapped to the global governance and strategy structure. How you define a region depends on what makes the most sense for your industry/profession and association.” http://agshq.i4a.com/files/public/Successful_Global_Strategies.pdf
“Gather input and feedback on a local/regional level and at the same time, collect and validate input gathered globally. Identify those issues that are common universally versus those that are specific and of high importance to a region. Develop your implementation strategy based on the information collected.” http://agshq.i4a.com/files/public/Successful_Global_Strategies.pdf
“In the present-day global form, product divisions are responsible for the worldwide operations such as marketing and production of productsunder their control. Firms in which geographical regions are the primary basis for division put the responsibility for all activities under area managers who report directly to the chief executive officer. This kind of organization simplifies the task of directing worldwide operations, because every country in the world is clearly under the control of someone who is in contact with headquarters. Few firms are organized by function at the top level. Those that are obviously believe worldwide functional expertise is more significant to the firm than is product or area knowledge. In this type of organization, those reporting to the CEO might be the senior executives responsible for each functional area (marketing, production, finance, and so on).” Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006). International business: The challenge of global competition (10th ed.). New York: McGraw-Hill
“What is new is the acceptance by many companies of the need for frequent reorganization. Present in these reorganizations, called reengineering by many, are a significant reduction in the levels of middle management, restructuring of work processes to reduce the fragmenting of the process across functional departments, empowerment of employees, and the use of computers for instant communication and swift transmittal of information. CEOs are striving to make their organizations lean, flat, fast to respond, and innovative.”Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006). International business: The challenge of global competition (10th ed.). New York: McGraw-Hill
The relationship between strategic planning and organizational design is that they co-exist together as a result of “one hand washes the other”. The organizational design comes after and is a part of the strategic planning, which comes first. The organizational design is required in order to achieve the company’s objective. Without one of them, the other will not follow through. Organizational design will specify the required organizational assets needed to execute the strategic plan in terms of people, functions and assets.
“be more capable of developing competitive strategies to confront the new global competition, (2) obtain lower production costs by promoting worldwide product standardization and manufacturing rationalization, and (3) enhance technology transfer and the allocation of company resources.” Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006). International business: The challenge of global competition (10th ed.). New York: McGraw-Hill http://www.novamind.com/planning/mind-maps/strategic-planning-4-650.png
“With less than 50 percent of the voting stock and even with no voting stock, an IC can have control. ICs have encountered resistance to putting IC personnel in the important executive positions from their joint venture partners or from host governments. The natural desire of these partners and governments is that their own nationals have at least equality in the important positions and that they get training and experience in the technology and management.”Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006). International business: The challenge of global competition (10th ed.). New York: McGraw-Hill.
To conclude: I have presented the concepts of international strategy and organizational design. The main topics that I covered are the relevance of international strategy to businesspeople; the global strategic planning process; the prediction of changes in the business environment affecting strategic planning; the relationship between strategic planning and organizational design; and the types of controls in an international company. I hope this “lunch & learn” presentation was informative. You will find that the information today will be useful in our work environment. If you have any questions or would like an in-depth explanation, you can go to our online library of resources. Thank you for your time and have a wonderful day!Ms. Kathrene Borden
