The document discusses various entry strategies, organizational structures, and recent developments for multinational corporations (MNCs). It describes traditional structures like export/import, wholly owned subsidiaries, and mergers/acquisitions. It also analyzes newer forms like joint ventures, strategic alliances, licensing, franchising, and keiretsus. Recent trends include temporary virtual networks, product integration models, and the changing role of information technology in organizing multinational operations.

1. Entry Strategies & Organizational StructureWarrenDongWooCarlos

2. GoalsDescribe how an MNC develops and implements entry strategies and ownership structures.Analyze the advantages and disadvantages of each type of organizational structure.Describe the recent, nontraditional organizational arrangements.Explain how organizational characteristics influence how the organization is structured.

3. Entry Strategies and Ownership StructuresExport/Import: Small investment. Transitional in nature. Wholly Owned Subsidiary: Clear communications and shared visions. Large investment in one place.Mergers/Acquisitions: Quick expansion.

4. Entry Strategies and Ownership StructuresAlliances and Joint Ventures: Improve efficiency, have access to knowledge, etc.Licensing: Avoid entry costs.Franchising: New stream of income.

5. DiscussionOne 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?

7. Terms1. Initial Division Structures2. International Division Structure 3. Global Product Division4. Global Area Division5. Global Functional Division

8. Terms6. Multinational Matrix Structure7. Transnational Network Structures

9. Discussion A small manufacturing firm believes there is a market for handheld tools that are carefully crafted for local markets. After spending two months in Europe, the president of this firm believes that his company can create a popular line of these tools. What type of organization structure would be of most value to this firm in its initial efforts to go international?

10. Discussion The same company decides to expand into Asia and North America, would you recommend any change in its organization structure? If yes, what would you suggest? if no, why not?

11. Discussion 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?

12. Nontraditional Organizational ArrangementsOrganizational arrangements from mergers and acquisitionsOrganizational arrangements from joint ventures and strategic alliancesOrganizational arrangements from Keiretsus

13. Joint Ventures & Strategic Alliances(Asian and Western Management Features)

14. KeiretsusVertically and/or horizontally integrated group of Companies. Linked through cross-ownership, interlocking directorates, long-term business dealings, and social ties.AdvantagesMore reliable access to materials, capital, and markets

15. Ensure Access to high quality inputs and just-in-time delivery

16. Share of R&D costs and information

17. Cross-marketing of products and services Other Example of New MNC Organizational arrangement The Emergency of Electronic Network Form of OrganizationOrganizing for Product IntegrationThe Changing Role of Information Technology in Organizing

18. The Emergency of Electronic Network Form of OrganizationTemporary contingent employees, they never see each other and communicate exclusively in an electronic environmentElectronic FreelancersTemporary companiesEx) Internet class of Europe and North America UN

19. Organizing for Product Integrationnew approaches to organizing for production developmentEx) Six organizational mechanisms used by ToyotaMutual adjustmentsDirect, technically-skilled supervisorsIntegrative leadershipTechnical training is provided in-house, and people are rotated within only one for most, if not all, of their careersComplex forms and bureaucratic proceduresDesign standards are maintained by the people who are doing the work and are continually changed to meet new design demandsPeople, not systems, design cars

20. Changing Role of InformationTechnology in Organizing

21. DiscussionWhy are keiretsus popular? What benefits do they offer?

22. Organizational Characteristics of MNCsFormalization: Use of defined structures and systems in decision making, communicating, and controlling.Specialization: Assigns individuals to specific well defined tasks.Centralization: Important decisions are made at the top.

23. DiscussionIn what way do formalization, specialization, and centralization have an impact on MNC organization structures?

24. Getting In on the Ground FloorEU faces threat of American and Asian competition.Ruehter Laboratories = Hi-tech R&D firmConsidering purchase of Dutch insulin maker.Ruehter plans to reorganize to work closely with Dutch firm.