asia

1. Doing Business in
Asia
 Gabriele Suder, Terence Tsai &
Sumati Varma

2. Chapter 3
Location decisions and
market expansion in Asia

3. Location decisions and market
expansion in Asia
3.1.1 International Location Choice
3.1.2 Aligning Organization Structure
3.2 Case Study – Unilever-changes in organization structure
3.3 Case Study: Uniqlo's decentralized organizational
structure as a customer-centered MNE in fashion
industry
3.4 Strategic Implications
3

4. Determinants of location choice
4

5. Macro-level determinants
• Regulatory Environment
• Socio Political Factors
• Infrastructure
• Special Economic Zones
• Government Efficiency and Corruption
• Sustainability and Ethical Attitudes
5

6. Micro level determinants
• Markets
• Consumer Base
• Cost of Production
• Agglomeration Benefits
• Labor Productivity
6

7. Early international structures
• EXPORT DEPARTMENT
7

8. Early global structures
• INTERNATIONAL DIVISION
8

9. Global structures
• GLOBAL PRODUCT STRUCTURE
9

10. Global structures
• GLOBAL AREA STRUCTURE
10

11. Global structures
• Global Functional Structure
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12. Hybrid structures
• MATRIX STRUCTURE
– Example – Olam International (Singapore), Royal Dutch
Shell (The Netherlands), Caterpillar (The USA), Cisco
(The USA)
• TRANSNATIONAL NETWORK STRUCTURE
– example - Royal Philips Electronics
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13. Unilever – Decentralized structure
13

14. Unilever – a regional reorganization
14

15. Unilever – A balanced matrix
15

16. Conclusion
• MNEs across the world have chosen to position themselves
in Asia based on a number of factors at both the macro and
micro level.
• The location choice is accompanied by an appropriate
organizational structure.
• Unilever began life as a decentralized organization, went
through a regional re-organization and has a balanced
matrix structure at present.
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