How Should The Company Manage And Organize Its International Activities?

1. HOW SHOULD A COMPANY
MANAGE ITS INTERNATIONAL
ACTIVITIES?

2. GLOBAL
STRATEGY
EXPORT
DEPARTMENT
GLOBAL
ORGANIZATION
INTERNATIONAL
DIVISION
GLOBAL
STRATEGY TO
MANAGE
INTERNATION
AL
OPERATIONS

3. 1) EXPORT DEPARTMENT
Consists of Sales Manager and
few Sales assistants.
This isn’t adequate when the
company moves into Joint
Ventures or Direct
Investment

4. International
Division
Geographical
Organizations
World Product
Groups
International
subsidiaries
2) INTERNATIONAL DIVISION (IT CAN
HAVE DIFFERENT KINDS OF
OPERATIONAL GROUPS)

5. COUNTRY MANAGERS
REGIONAL VICE-PRESIDENTS (MIDDLE
EAST, AFRICA, EUROPE ETC.)
DIVISION PRESIDENT
GEOGRAPHICAL
ORGANIZATIONS

6. WORLD PRODUCT
GROUP
President
Vice Presidents
(responsible for
worldwide sales of
each product group)
Corporate Staff Area specialist
(Expertise on geographical
areas)

7. INTERNATIONAL
SUBSIDIARIES
SUBSIDIARY PRESIDENTS Reports to DIVISION PRESIDENT

8. 3) GLOBAL ORGANIZATIONS
In Global Organizations top corporate
management and staff plan worldwide
manufacturing facilities, marketing policies,
financial flows, and logistical systems.
The global operating units report directly
to the chief executive or executive
committee, not to the
head of an international division.

9. STRATEGIES BASED ON FORCES OF GLOBAL
INTEGRATION AND LOCAL RESPONSIVENESS
GLOBAL INTEGRATION > LOCAL
RESPONSIVENESS
(GLOBAL STRATEGY)
LOCAL RESPONSIVENESS > GLOBAL
INTEGRATION
(PORTFOLIO OF NATIONAL
OPPORTUNITIES)
LOCAL RESPONSIVENESS = GLOBAL
INTEGRATION
(GLOCAL STRATEGY)

11. Created by Akash Yadav, IIT Kharagpur, during an
internship by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com