This document discusses global strategy and organization for international businesses. It defines strategy as a plan to differentiate an organization and achieve goals. Effective strategies allocate resources to production, marketing, and development. The document outlines four strategic objectives and different types of industry and organizational structures used by global companies. These include multidomestic, global, and transnational strategies that balance global integration with local responsiveness.
The world may continue to shrink in light of advanced technology, higher demands from markets and faster turnaround times, globalization has become a staple for world commerce and international business.
The world may continue to shrink in light of advanced technology, higher demands from markets and faster turnaround times, globalization has become a staple for world commerce and international business.
It implies the number of people who are directly managed by a single individual. Span of management is also known as span of control, span of responsibility and span of authority.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
1. Introduction to International Business, Globalization and Trading Environm...Charu Rastogi
This presentation explores meaning and features of International Business Management, meaning of Globalization, dimensions of globalization, stages of globalization and advantages and disadvantages of globalization. It also talks about the trading environment of International Trade
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
It implies the number of people who are directly managed by a single individual. Span of management is also known as span of control, span of responsibility and span of authority.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
1. Introduction to International Business, Globalization and Trading Environm...Charu Rastogi
This presentation explores meaning and features of International Business Management, meaning of Globalization, dimensions of globalization, stages of globalization and advantages and disadvantages of globalization. It also talks about the trading environment of International Trade
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
This template was provided by the Davidson Institute.
The Davidson Institute Team deliver business planning and financial education concepts through courses that can help bring further knowledge and expand on the information that has provided through this seminar. They provide both face to face and on-line learning platforms. If you would like to speak to them on how they may help your organisation, please drop them a note or visit them at davidsoninstitute.edu.au for more information.
Chapter EightGlobal Strategy and Organization.docxchristinemaritza
Chapter Eight
Global Strategy and Organization
*
*
Chapter ObjectivesLearn about the integration- responsiveness frameworkDistinctive MNE strategies emerging from the frameworkOrganizational arrangements associated with the MNE strategiesUnderstanding how to build a transnational MNE
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Opening Case –
IKEA’s Global StrategyIKEA’s operations encompass 35 nations, 240 stores, 100000 employees, 20 franchises, 2,000 suppliersIKEA’s strategyoffers Scandinavian design quality furniture at low prices. 90 percent of the product line is standardized around the world, the product development, purchasing, and warehousing are consolidated at its headquarters in Sweden. target segment is families with limited income and limited living space IKEA’s Organizationhas an informal corporate culture, with few titlesstores maintain direct contact with IKEA headquarters for speedy decision making and easy globalization. Managers rely on a consensus building approach, and readily share their knowledge and skills with coworkers.
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The Role of Strategy in International ContextThree Objectives (Bartlett and Ghoshal)Efficiency: achieving cost leadership. Flexibility: developing responsiveness to the diversity and volatility of different country environments. Learning: the ability to learn from international exposure and leverage learning on a worldwide basis. MNEs find it challenging to achieve all three objectivesThe US firms have excelled in achieving efficiency via scale economies and standardized products, building on the large domestic market base. The European firms have succeeded by being locally responsive, building on the diversity of the European nations. The East Asian firms have succeeded by tapping international learning from and across various nations, and leveraging that worldwide.
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The Integration- Responsiveness FrameworkGlobal integration: coordination of the MNE’s value chain activities across nations to achieve worldwide efficiency, synergy, and cross-fertilization. focus is on convergent customer needs, competitive environments, functional imperatives, and operating systems across nations. strategic decisions are made on a global basis, to avoid the costs of adapting to local situations.Local responsiveness:flexibility towards country-specific situations, needs, and opportunities. focus is on adaptation, accommodation, and adjustment to country-specific customer needs, competitive environment, functional imperatives, technological capabilities, and operating systems. strategic decisions made on a local basis, to assure entrepreneurial flexibility and cultural responsiveness.
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Global business strategies
Home replication
Strategy
Global
Strategy
Transnational
Strategy
Multi-local
Strategy
High
High
Low
Low
Pressures for
Local Responsiveness
Pressures for
Global Integration/
Cost Reduction
*
Globalization Drivers in an Industry (George Yip, 2003)Market Drivers: Consumer li ...
Cross culture management is an art. Successful Organisation managed it well. In this age of globalisation Multinational, multicultural organisations need to know the local and global mind - sets for the smooth operation of the organisation.
Profiting from Global Expansion, Global Expansion and Business Level Strategy, Pressures for Cost Reduction and Local Responsiveness; International Strategies- International Multinational, Domestic, Global and Transnational Strategies; Strategic Alliance- Types of Competitive Strategic Alliances, Advantages and Disadvantages of Strategic Alliances
In the digital age, businesses are inundated with tools promising to streamline operations, enhance creativity, and boost productivity. Yet, the true key to digital transformation lies not in the accumulation of tools but in strategically integrating the right AI solutions to revolutionize workflows. Join Jordache, an experienced entrepreneur, tech strategist and AI consultant, as he explores essential AI tools across three critical categories—Ideation, Creation, and Operations—that can reshape the way your business creates, operates, and scales.This talk will guide you through the practicalities of selecting and effectively using AI tools that go beyond the basics of today’s popular tools like ChatGPT, Claude, Gemini, Midjourney, or Dall-E. For each category of tools, Jordache will address three crucial questions: What is each tool? Why is each one valuable to you as a business leader? How can you start using it in your workflow? This approach will not only clarify the role of these tools but also highlight their strategic value, making it perfect for business leaders ready to make informed decisions about integrating AI into their workflows.
Key Takeaways:
>> Strategic Selection and Integration: Understand how to select AI tools that align with your business goals and how to conceptually integrate them into your workflows to enhance efficiency and innovation.
>> Understanding AI Tool Categories: Gain a deeper understanding of how AI tools can be leveraged in the areas of ideation, creation, and operation—transforming each aspect of your business.
>> Practical Starting Points: Learn how you can start using these tools in your business with practical tips on initial steps and integration ideas.
>> Future-Proofing Your Business: Discover how staying informed about and utilizing the latest AI tools and strategies can keep your business competitive in a rapidly evolving digital landscape.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
[Google March 2024 Update] How To Thrive: Content, Link Building & SEOSearch Engine Journal
March 2024 disrupted the SEO industry. Websites were deindexed, and manual penalties were delivered—all to produce more helpful, more trustworthy search results.
How did your website fare?
Watch us as we delve into the seismic shifts brought about by Google's March 2024 updates and explore strategies to not just survive, but thrive in this dynamic digital landscape.
You’ll learn:
- How to create content that is valuable to users (not just search engines) using E-E-A-T.
- How to build links that can boost rankings and withstand algorithm updates.
- Best practices for content creation and link building so you can thrive during algorithm updates.
With Vince Ramos, we'll examine the implications of the latest algorithm changes on content creation, link building, and SEO practices, and offer actionable insights from businesses like yours that have remained steadfast amidst the volatility.
Using real-life case studies, we’ll also show you the effectiveness of manual link building techniques and person-first content strategies.
Whether you're a seasoned SEO professional, a budding content creator, or anyone in between, this webinar will help you weather the changes in Google's algorithms and capitalize on them for sustained success.
Check out this webinar and unlock the secrets to thriving in the new Google era.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
How to Use AI to Write a High-Quality Article that Ranksminatamang0021
In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
In today's digital world, customers are just a click away. "Grow Your Business Online: Introduction to Digital Marketing" dives into the exciting world of digital marketing, equipping you with the tools and strategies to reach new audiences, expand your reach, and ultimately grow your business.
website = https://digitaldiscovery.institute/
address = C 210 A Industrial Area, Phase 8B, Sahibzada Ajit Singh Nagar, Punjab 140308
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
DMF Portfolio Piece Smart Goals - Artist Management.docx
Stratergy
1. International Business: Strategy, Management, and the New Realities 1
International Business
Strategy, Management & the New Realities
by
Cavusgil, Knight and Riesenberger
Chapter 11
Global Strategy and
Organization
2. International Business: Strategy, Management, and the New Realities 2
What Is Strategy?
A plan of action that channels an organization’s
resources so that it can effectively differentiate itself
from competitors, accomplish distinctive goals, and
achieve superior performance.
• Managers develop strategies based on the
organization’s strengths and weaknesses, and
evaluation of opportunities and threats.
• Managers primarily make decisions about the firm’s
production and marketing activities, and the
development and allocation of resources devoted to
these.
3. International Business: Strategy, Management, and the New Realities 3
Strategy Should Pinpoint to Actions
• Formulate a strong international vision
• Allocate scarce resources on a worldwide
basis
• Participate in major markets
• Implement global partnerships
• Engage in global competitive moves
• Configure value-adding activities on a
global scale
4. International Business: Strategy, Management, and the New Realities 4
Four Strategic Objectives
• Efficiency – minimize the cost of operations
and activities
• Effectiveness – maximize revenues
• Flexibility – tap local resources and
opportunities to maximize options for the firm
• Learning – add to proprietary technology,
brand name and management capabilities by
internalizing knowledge gained from
international ventures.
5. International Business: Strategy, Management, and the New Realities 5
Multidomestic and Global Industries
• Multidomestic industries. Firms apply a country-by-
country approach to product development and
marketing, as dictated by specific needs, tastes, laws,
and economic situation. Competition is on a country-
by-country basis. E.g., food and beverage, consumer
products, clothing and fashion industries.
• Global industries. Firms devise products and
marketing appropriate for an entire region or for the
world. Competition takes place on a regional or
worldwide scale. E.g., aerospace, automobiles,
telecommunications, computers, chemicals, and
industrial equipment industries.
6.
7. International Business: Strategy, Management, and the New Realities 7
Global Integration
• A characteristic of global industries in which
firms coordinate their value-chain activities
across many countries in order to maximize
efficiency, effectiveness, flexibility, and
learning.
• Global integration promotes learning and
cross-fertilization, as well as reduction of
wasteful duplication (‘redundancy’), across
the firm’s operations worldwide.
8. International Business: Strategy, Management, and the New Realities 8
Pressures for Global Integration
• Economies of Scale. Concentrating manufacturing in a few
select locations to achieve economies of mass production.
• Capitalize on converging consumer trends and universal
needs. Companies such as Nike, Dell, ING, and Coca-Cola
offer products that appeal to customers everywhere.
• Uniform service to global customers. Services are easier to
standardize when their creation and delivery are centralized
• Global sourcing of raw materials, components, energy,
and labor. Sourcing from large-scale, centralized suppliers
provides economies of scale and consistent performance.
• Global competitors. Global coordination is necessary to
monitor and respond to global competitive threats.
• Availability of media that reaches customers in multiple
markets. Firms now take advantage of the Internet and
cross-national television to promote offerings in many
countries simultaneously.
9. International Business: Strategy, Management, and the New Realities 9
Local Responsiveness
• A characteristic of multidomestic industries in
which firms attempt to meet the specific needs of
buyers in individual countries, as well as adapt to
the local competitive environment and distribution
structure.
• Although most firms prefer a global integration
approach, some degree of local responsiveness is
necessary due to differences in individual markets.
• For example, given distinctive local conditions,
Wal-Mart store managers in Mexico had to adjust
store hours, the merchandise mix, marketing
approaches, and employee training.
10. International Business: Strategy, Management, and the New Realities 10
Pressures for Local Responsiveness
• Diversity of local customer needs. E.g., products in the
food and furniture industries require much adaptation.
• Differences in distribution channels. E.g., systems in
Japan, China, India, and Eastern Europe vary greatly.
• Local competition. Where many local rivals are present,
it is best to offer carefully adapted products and have a
local presence to maximize knowledge of competitors.
• Cultural differences. For products where cultural
differences are important, such as books and kitchen
appliances, products and marketing need to be
substantially adapted.
• Host government requirements and regulations. The
firm must follow local laws and regulations.
11. International Business: Strategy, Management, and the New Realities 11
Four Strategies Emerging from
the Integration-Responsiveness Framework
1. Home replication strategy
2. Multidomestic strategy
3. Global strategy
4. Transnational strategy
12.
13. International Business: Strategy, Management, and the New Realities 13
Home Replication Strategy
• The firm views international business as
separate from, and secondary to, its domestic
business.
• International business typically pursued to
generate additional sales for domestic products
• Products are designed with domestic customers
in mind; i.e., not adapted for foreign markets.
• The firm expects little knowledge flows from
foreign operations.
• Usually based on simple exporting
14. International Business: Strategy, Management, and the New Realities 14
Multidomestic Strategy
(aka Multi-Local Strategy)
• Headquarters delegates much autonomy to each
country manager, allowing him/her to operate
independently and pursue local responsiveness.
• The managers substantially adapt products and
practices to suit local conditions.
• The managers function independently, with little
incentive to share knowledge with managers
elsewhere.
• The firm ends up with a collection of disconnected
markets, with no coordination or integration of
national markets.
15. International Business: Strategy, Management, and the New Realities 15
Global Strategy
• Headquarters pursues global integration, seeking to
control country operations in order to minimize
duplication, and maximize efficiency, effectiveness,
and learning worldwide.
• Emphasizes centralized coordination and control of
R&D, production, marketing, and after-sales service
• Management views the world as one large
marketplace.
• The firm offers standardized products, using
standardized marketing
• Main advantages: lower costs; easier to manage
16. International Business: Strategy, Management, and the New Realities 16
Transnational Strategy
• A tug of war – the firm attempts to strike some
ideal balance between global and multidomestic
strategies.
• Combines the major advantages of
multidomestic and global strategies, while
minimizing their disadvantages.
• Applies the model ‘standardize whenever
possible; adapt when necessary.
18. International Business: Strategy, Management, and the New Realities 18
IKEA Applies a Transnational Strategy
• Some 90% of the product line is identical
across more than two dozen countries. IKEA
modifies some of its furniture to suit individual
countries.
• IKEA’s marketing is centrally developed at
company headquarters, but implemented with
local adjustments (e.g., to suit language
differences in catalogs).
19. International Business: Strategy, Management, and the New Realities 19
Organizational Structure
• The reporting relationships inside the firm –
“the boxes and lines” that specify the linkages
among people, functions, and processes that
allow the firm to carry out its operations.
• In larger international firms, organizational
structure includes subsidiaries, affiliates,
suppliers, and various other partners.
• A fundamental issue concerns the choice
between centralization and decentralization
of decision-making and value-chain activities.
20. A
An MNE Network
H
B
C
D
E
F
SD
BD
CD
RD
A : Home plant
H: Headquarters
B … F: Subsidiaries
Subsidiary Level Network
S: Suppliers R: Regulatory institutions
B: Buyers C: Customers SEBE
CE RE
SB
BB
CB
RB
SA BA
CA RA
SF BF
CF
RF
SC
BC
CC
RC
21.
22. International Business: Strategy, Management, and the New Realities 22
Alternative Organizational Arrangements
• The export department, with the international
division as a variant.
• The decentralized structure involves
geographic area division
• The centralized structure involve either
product or functional division
• A global matrix structure blends the
geographic, product and functional structures
although this is complex and difficult to
achieve.
23.
24.
25.
26.
27.
28. International Business: Strategy, Management, and the New Realities 28
Global Matrix Structure
• An arrangement that blends the geographic area,
product, and functional structures in an attempt to
leverage the benefits of a purely global strategy
and maximize global organizational learning, while
remaining responsive to local needs.
• It is an attempt to capture the benefits of the
geographic area, product, and functional
organization structures simultaneously, while
minimizing their shortcomings.
• Closely associated with Transnational Strategy
31. International Business: Strategy, Management, and the New Realities 31
Examples of Visionary Leaders
• Ratan N. Tata, the chairman of the Tata Group,
transformed this Indian conglomerate into a
transnational organization. Tata oversees a $22
billion family conglomerate whose companies
market a range of products from automobiles to
watches.
• Carlos Ghosn, the CEO of Nissan and Renault,
has transformed a Japanese automotive firm
from bankruptcy to profitable operations.
• Toyota CEO Fujio Cho has led his firm to record
sales in the intensely competitive global
automobile industry.
32. International Business: Strategy, Management, and the New Realities 32
Organizational Culture
• The pattern of shared values, norms of behavior,
systems, policies, and procedures that
employees learn and adopt. The ‘personality’ of
the firm.
• Leading MNEs attempt to instill a ‘global culture’
in the firm’s operations worldwide, by
emphasizing a ‘borderless mindset’, developing
internationally sophisticated managers, and
emphasizing the firm’s global performance. E.g.,
Nestle, Nissan, Schlumberger, Unilever
33. International Business: Strategy, Management, and the New Realities 33
Organizational Processes
Managerial routines, mechanisms, and
technologies that allow the firm to function as
intended.
Examples
• GE digitizes all key documents and uses
intranets and the Internet to automate many
activities and reduce operating costs.
• Schlumberger keeps a huge database of skilled
individuals within the firm available to all
subsidiaries on the corporate intranet.