Meeting 8 team A

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Meeting 8 team A

  1. 1. Entry Strategies & Organizational Structure<br />Warren<br />DongWoo<br />Carlos <br />
  2. 2. Goals<br />Describe how an MNC develops and implements entry strategies and ownership structures.<br />Analyze the advantages and disadvantages of each type of organizational structure.<br />Describe the recent, nontraditional organizational arrangements.<br />Explain how organizational characteristics influence how the organization is structured.<br />
  3. 3. Entry Strategies and Ownership Structures<br />Export/Import: Small investment. Transitional in nature. <br />Wholly Owned Subsidiary: Clear communications and shared visions. Large investment in one place.<br />Mergers/Acquisitions: Quick expansion. <br />
  4. 4. Entry Strategies and Ownership Structures<br />Alliances and Joint Ventures: Improve efficiency, have access to knowledge, etc.<br />Licensing: Avoid entry costs.<br />Franchising: New stream of income. <br />
  5. 5. Discussion<br />One of the most common entry strategies for MNCs is the joint venture. Why are so many companies opting for this strategy? Would a fully owned subsidiary be a better choice?<br />
  6. 6.
  7. 7. Terms<br />1. Initial Division Structures<br />2. International Division Structure <br />3. Global Product Division<br />4. Global Area Division<br />5. Global Functional Division<br />
  8. 8. Terms<br />6. Multinational Matrix Structure<br />7. Transnational Network Structures<br />
  9. 9. Discussion <br />A small manufacturing firm believes there is a market for handheld tools that are carefully crafted for local markets. <br /> After spending two months in Europe, the president of this firm believes that his company can create a popular line of these tools. <br /> What type of organization structure would be of most value to this firm in its initial efforts to go international?<br />
  10. 10. Discussion <br />The same company decides to expand into Asia and North America, would you recommend any change in its organization structure?<br /> If yes, what would you suggest? if no, why not?<br />
  11. 11. Discussion <br />If this same company finds after three years of international effort that it is selling 50 percents of its output overseas, what type of organizational structure would you suggest for the future?<br />
  12. 12. Nontraditional Organizational Arrangements<br />Organizational arrangements from mergers and acquisitions<br />Organizational arrangements from joint ventures and strategic alliances<br />Organizational arrangements from Keiretsus<br />
  13. 13. Joint Ventures & Strategic Alliances<br />(Asian and Western Management Features)<br />
  14. 14. Keiretsus<br />Vertically and/or horizontally integrated group of Companies.<br /> Linked through cross-ownership, interlocking directorates, long-term business dealings, and social ties.<br />Advantages<br /><ul><li>More reliable access to materials, capital, and markets
  15. 15. Ensure Access to high quality inputs and just-in-time delivery
  16. 16. Share of R&D costs and information
  17. 17. Cross-marketing of products and services </li></li></ul><li>Other Example of New MNC Organizational arrangement <br />The Emergency of Electronic Network Form of Organization<br />Organizing for Product Integration<br />The Changing Role of Information Technology in Organizing<br />
  18. 18. The Emergency of Electronic Network Form of Organization<br />Temporary contingent employees, they never see each other and communicate exclusively in an electronic environment<br />Electronic Freelancers<br />Temporary companies<br />Ex) Internet class of Europe and North America UN<br />
  19. 19. Organizing for Product Integration<br />new approaches to organizing for production development<br />Ex) Six organizational mechanisms used by Toyota<br />Mutual adjustments<br />Direct, technically-skilled supervisors<br />Integrative leadership<br />Technical training is provided in-house, and people are rotated within only one for most, if not all, of their careers<br />Complex forms and bureaucratic procedures<br />Design standards are maintained by the people who are doing the work and are continually changed to meet new design demands<br />People, not systems, design cars<br />
  20. 20. Changing Role of InformationTechnology in Organizing<br />
  21. 21. Discussion<br />Why are keiretsus popular? What benefits do they offer? <br />
  22. 22. Organizational Characteristics of MNCs<br />Formalization: Use of defined structures and systems in decision making, communicating, and controlling.<br />Specialization: Assigns individuals to specific well defined tasks.<br />Centralization: Important decisions are made at the top.<br />
  23. 23. Discussion<br />In what way do formalization, specialization, and centralization have an impact on MNC organization structures?<br />
  24. 24. Getting In on the Ground Floor<br />EU faces threat of American and Asian competition.<br />Ruehter Laboratories = Hi-tech R&D firm<br />Considering purchase of Dutch insulin maker.<br />Ruehter plans to reorganize to work closely with Dutch firm.<br />
  25. 25. Discussion<br />What type of organization design would you recommend that Ruehter use?<br />If there were joint R&D efforts, would this be a problem?<br />
  26. 26. Questions?<br />

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