Tải bản đầy đủ

Slide multinational management 3e cullen ch07

Chapter 7
Organizational Designs for
Multinational Companies

Copyright© 2004 Thomson Learning All rights reserved


Learning Objectives
••
••
••
••

Understand
Understand the
the components
components ofof organizational
organizational design
design
Know
Know the

the basic
basic building
building blocks
blocks ofof organization
organization
structure
structure
Understand
Understand the
the structural
structural options
options for
for multinational
multinational
companies
companies
Know
Know the
the choices
choices multinationals
multinationals have
have inin the
the use
use ofof
subsidiaries
subsidiaries
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Learning Objectives
•• See
See the
the links
links between
between multinational
multinational strategies
strategies and
and
structures
structures
•• Understand
Understand the
the basic
basic mechanisms
mechanisms ofof organizational
organizational
coordination
coordination and
and control
control
•• Know
Know how
how coordination
coordination and
and control
control mechanisms
mechanisms are
are
used
used by
by multinational
multinational companies
companies

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Organizational Design
•• How
How organizations
organizations structure
structure subunits
subunits and
and coordination
coordination
and
and control
control mechanisms
mechanisms toto achieve
achieve strategic
strategic goals
goals
•• Basic
Basic questions:
questions:
•• How
How toto divide
divide work
work among
among the
the organization’s
organization’s
subunits?
subunits?
•• How
How toto coordinate
coordinate and
and control
control the
the efforts
efforts ofof the
the units
units
created?
created?
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Nature of Organization Design
•• InIn small
small organizations,
organizations, there
there isis little
little reason
reason toto divide
divide
work
work
•• Everyone
Everyone does
does the
the same
same thing
thing and
and everything
everything
•• As
As organizations
organizations grow,
grow, there
there isis aa need
need toto divide
divide work
work
and
and the
the organization
organization
•• There
There isis no
no one
one best
best organizational
organizational design
design

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Functional
Structure
•• Departments
Departments perform
perform separate
separate business
business functions
functions
such
such as
as marketing
marketing or
or manufacturing
manufacturing
•• Simplest
Simplest ofof organizations
organizations
•• Most
Most smaller
smaller organizations
organizations have
have functional
functional structures
structures

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.1: A Basic Functional
Structure

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Functional
Structure
•• Works
Works best
best when
when organization
organization has:
has:
•• Few
Few products
products
•• Few
Few locations
locations
•• Few
Few types
types ofof customers
customers
•• AAstable
stable environment
environment
•• Routine
Routine technology
technology

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Product and
Geographic Structures
•• Product
Product structure:
structure: departments
departments or
or subunits
subunits based
based on
on
different
different product
product groups
groups
•• Geographic
Geographic structure:
structure: departments
departments or
or subunits
subunits based
based
on
on geographic
geographic regions
regions

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Product and
Geographic Structures (cont.)
••
••

Usually
Usually less
less efficient
efficient than
than the
the functional
functional organization
organization
Allows
Allows aa company
company toto serve
serve customer
customer needs
needs that
that vary
vary
by
by region
region or
or product
product

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.2: Product Structure

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.3: A Basic
Geographic Structure

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Product and
Geographic Structures
•• Managers
Managers choose
choose product
product structures
structures when:
when:
•• Product
Product or
or an
an area
area sufficiently
sufficiently unique
unique toto require
require
focused
focused functional
functional efforts
efforts on
on one
one type
type ofof product
product or
or
service
service
•• Hybrid
Hybrid structure:
structure: mixes
mixes functional,
functional, geographic,
geographic, and
and
product
product units
units

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Organizational Structures to
Implement Multinational
Strategies
•• When
When company
company first
first goes
goes international,
international, itit seldom
seldom
changes
changes structure.
structure.
•• Passive
Passive exporter
exporter
•• Licensing
Licensing has
has little
little impact
impact on
on domestic
domestic structures.
structures.
•• However,
However, when
when international
international sales
sales become
become more
more
central,
central, structures
structures need
need toto be
be changed.
changed.

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Export Department
•• Coordinates
Coordinates and
and controls
controls aa company’s
company’s export
export
operations
operations
•• Export
Export department
department
•• IsIs created
created when
when exports
exports become
become significant
significant
•• Deals
Deals with
with international
international sales
sales ofof all
all products
products

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.4: A Functional
Structure with an Export
Department

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Foreign Subsidiaries
•• Subunit
Subunit ofof the
the multinational
multinational company
company that
that isis located
located inin
another
another country
country
•• Types
Types ofof foreign
foreign subsidiaries
subsidiaries
•• Minireplica
Minireplica subsidiary:
subsidiary: smaller
smaller version
version ofof the
the parent
parent
company
company
•• Uses
Uses the
the same
same technology
technology and
and producing
producing the
the
same
same products
products as
as the
the parent
parent company
company
•• Transnational
Transnational subsidiary:
subsidiary: has
has no
no companywide
companywide form
form
or
or function
function
•• Each
Each subsidiary
subsidiary contributes
contributes what
what itit does
does best
best
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Foreign Subsidiaries
•• Many
Many subsidiaries
subsidiaries are
are neither
neither minireplicas
minireplicas nor
nor
transnationals
transnationals
•• May
May take
take different
different forms
forms or
or functions
functions

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Foreign Subsidiaries
•• Multinationals
Multinationals choose
choose the
the mix
mix ofof functions
functions based
based on:
on:
•• The
The firm’s
firm’s multinational
multinational strategy
strategy or
or strategies
strategies
•• The
The subsidiaries’
subsidiaries’capabilities
capabilities and
and resources
resources
•• The
The economic
economic and
and political
political risk
risk ofof building
building and
and
managing
managing aa subunit
subunit inin another
another country
country
•• How
How the
the subsidiaries
subsidiaries fitfit into
into the
the overall
overall multinational
multinational
organizational
organizational structure
structure
Copyright© 2005 South-Western/Thomson Learning All rights reserved


International Division
•• Responsible
Responsible for
for managing
managing exports,
exports, international
international sales,
sales,
and
and foreign
foreign subsidiaries
subsidiaries
•• Usual
Usual step
step after
after export
export department
department
•• Deals
Deals with
with all
all products
products
•• Manages
Manages overseas
overseas sales
sales force
force and
and manufacturing
manufacturing sites
sites

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.5: An International
Division

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Organizational Structures to
Implement Multinational
Strategies
•• Reasons
Reasons toto abandon
abandon the
the international
international division
division
•• Diverse
Diverse products
products overwhelm
overwhelm capacities
capacities ofof
multinational
multinational
•• Not
Not close
close enough
enough toto local
local markets
markets
•• Cannot
Cannot take
take advantage
advantage ofof global
global economies
economies ofof scale
scale
or
or global
global sources
sources ofof knowledge
knowledge
•• Several
Several options
options available
available toto deal
deal with
with these
these
shortcomings
shortcomings
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Worldwide Geographic
Structure
•• Has
Has geographical
geographical units
units representing
representing regions
regions ofof the
the
world
world
•• Prime
Prime reason
reason isis toto implement
implement aa multidomestic
multidomestic or
or
regional
regional strategy
strategy
•• Organizational
Organizational design
design with
with maximum
maximum geographic
geographic
flexibility
flexibility
•• Separate
Separate divisions
divisions for
for large
large market
market countries
countries
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 7.6: Royal Vopak
Geographic Structure

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Worldwide Product Structure
•• Worldwide
Worldwide product
product structure
structure
•• Gives
Gives product
product divisions
divisions responsibility
responsibility toto produce
produce
and
and sell
sell their
their products
products or
or services
services throughout
throughout the
the
world
world
•• Implements
Implements strategies
strategies that
that emphasize
emphasize global
global
products
products
•• Provides
Provides an
an efficient
efficient way
way toto organize
organize and
and centralize
centralize
the
the production
production and
and sales
sales ofof similar
similar products
products
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Tài liệu bạn tìm kiếm đã sẵn sàng tải về

Tải bản đầy đủ ngay

×

×