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Chapter 12 The Organization and Governance of Foreign Operations

This document discusses organizing a company's international business operations. It covers the evolution of organizing structures, from traditional to contemporary. Traditional structures include functional, divisional and matrix structures. Contemporary structures discussed are network and virtual organizations. The document also covers coordination and control systems used, including standardization, plans, mutual adjustment and control methods like market, bureaucratic and clan. Control tools and the importance of organizational culture are also summarized. Finally, the rise of corporate universities to develop shared values on a global scale is mentioned.

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477 views14 pages

Chapter 12 The Organization and Governance of Foreign Operations

This document discusses organizing a company's international business operations. It covers the evolution of organizing structures, from traditional to contemporary. Traditional structures include functional, divisional and matrix structures. Contemporary structures discussed are network and virtual organizations. The document also covers coordination and control systems used, including standardization, plans, mutual adjustment and control methods like market, bureaucratic and clan. Control tools and the importance of organizational culture are also summarized. Finally, the rise of corporate universities to develop shared values on a global scale is mentioned.

Uploaded by

salsa azzahra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BI0013

International Business
The Organization and
Governance of Foreign
Operations

ACCOUNTING PROGRAM
Chapter Objectives
•
Profile the evolving understanding of organizing a
•company for international business
Describe the antecedents and features of traditional
•
structures
Describe the antecedents and features ofcontemporary
•
structures
Study the systems used to coordinate and control
•
international activities
Profile the role and characteristics of organizationculture
•
Link the ideas of strategy and organization in the
international company
Organizing Operations

Organizing is the process of creating the structure,


systems, and culture needed to implement the company’s
strategy.
Factors Affecting Organizing
Operations
Change: The Critical Factor
• Changes in the market environment and nature of work push
managers to rethink how they organize their workplace.
• Trends inducing change:
• Expansion of International Business
• Importance of Knowledge as a Competitive Advantage
• The Internet as a Design Standard
• Workplace Adjustments Managerial Adjustments
• Changing Social Contract
• Global Credit Crunch and Rising Unemployment
Organization Structure
Structure: formal arrangement of jobs within a company
that specifies roles, responsibilities, and relationships
• Vertical Differentiation
• Horizontal Differentiation
Vertical Differentiation
Centralization versus Decentralization in Organizational
Design
– Centralization: degree to which high-level
managers make strategic decisions and delegate
them to lower levels for implementation.
– Decentralization: degree to which lower- level
managers make and implement strategic
decisions.
Horizontal Differentiation
• Functional Structure
– Advantages and Disadvantages
• Divisional Structure
– International Division
– Product Division
– Geographic Division
• Matrix Structure
– Unity of Command Principle
• Mixed Structure
Contemporary Structures
• Network Structure
• Virtual Organization
• Pitfalls of Contemporary Structures
Coordination and Control
Systems
• Approaches to Coordination:
– Standardization
– Plan
– Mutual Adjustment
• Control Methods:
– Market
– Bureaucratic
– Clan
Control Tools
• Reports
• Visits to Subsidiaries
• Cost and Accounting Comparisons
• Evaluative Metrics
• Information Systems
Organization Culture
• The Importance of Culture
– Culture and Values
– Culture and the Value Chain
• Challenges and Pitfalls
• Organization Culture and Strategy
Future: The Role and Rise of
Corporate Universities
• Managers believe companies must purposefully
develop shared values
• Worldwide, more than 1,000 new corporate
universities have begun operations
• Corporate universities—physical and virtual
institutions that:
– Lead training efforts
– Facilitate learning
– Help upgrade competencies
– While advocating the philosophical ideals of the company’s
culture

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