Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Lecture 9 industry studies student
1. Industry Studies: Consumer Goods Industry
Topic: Developing and implementing
strategies globally
Topic Number: 9
2. Overview
Organisations operating in the CGI need to develop a robust
framework to determine how decision-making is done and
implemented. A key decision is the level of head office control vs
subsidiary autonomy as this has significant implications for global
strategy alignment.
In this lecture, we will explore a multitude of these issues and
determine how different organisations approach them. We will
initially determine the impact of international business activity on
organisation design and look at the 5 forms of international
organisation design. Thereafter, we will go on to explore the
purpose of control and how decisions are developed in international
business.
2
Finally, we will look at some issues relating to implementation.
3. Learning Outcomes
3
• Determine and articulate how strategy is
developed globally
• Understand and discuss the dynamics of home
country control vs local subsidiary autonomy
• Be able to explain the key features of organisation
control and how it influences decision making and
implementation
• Critically evaluate the key issues that
organisations in the CGI may face when
developing and implementing strategy
4. Developing and implementing strategy
Every company has two
organisational structures: The
formal one is written on the
charts; the other is the
everyday relationship of the
men and women in the
organisation.
Harold Geneen
I try to motivate people and
align our individual
incentives with
organisational incentives.
And then let people do their
best.
John Liu
5. Why is organisation design important to
strategy development?
Allocate
resources
Provide
information
Assign
tasks
Obtain
information
6. Different organisation approaches
International Approach
Export Approach
Corollary
Approach
Span
of
control
Global Organisation Design
8. 5 forms of organisation design
Product
design
Area
design
Functional
design
Customer
design
Matrix
design
9. Why is organisation design important for
strategy and implementation?
Determines who
makes the decision
Determines what
the objective is
Determines how
the decision
affects strategy
Determines who
implements
strategy
11. Global product design
Related Products Unrelated Products
M-Form
Multidivisional
H-Form
Holding
12. Global product design
Advantages Disadvantages
Management Skill
Duplication of Efforts
Efficient Production Coordination Levels
Global Marketing Corporate Learning
13. Global area design
Marketing-Driven Strategy
Brand-Name Reputation
Local Market Expertise
Chapter 14 - 13
14. Disadvantages of global area design
14
May
sacrifice
cost
efficiencies
May slow
diffusion of
technology
Results in
duplication
of
resources
Raises
costs of
coordination
Impedes
global
product
planning
16. Disadvantages of global functional design
Limited Products or Customers
Difficult to Coordinate
Duplication of Resources
17. Take 5 minutes and determine the
structures of these companies
18. Levels of global control:
Managerial Philosophy
Ethnocentric Polycentric Geocentric
19. Centralisation vs Decentralisation
Decision Making
Focus
Corporate
Headquarters
Local Subsidiary
Local
Market
Response
Overall
Needs of
the Firm
Lower Higher
Higher Lower
21. Empowering the subsidiary board of
directors
Decentralization
Local Business and Politics
Ethical and Social Responsibility
Level of Accountability
22. Coordination in the global organisation
Organizational
Hierarchy
Rules and
Procedures
Ad Hoc Techniques
Informal
Mechanisms
23. Keeping decision-making and
implementation in check
1. Define Control Standards
2. Develop Performance Measures
3. Compare Performance and Standards
4. Respond to Deviations
