International Business Chapter 13

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  1. Organizational structure
    the way that an organization formally arranges its domestic and international units and activities, and the relationships among these various organizational components
  2. International Division
    A division in the organization that is at the same level as the domestic division and is responsible for all non home country activities
  3. Product form
    avoids the duplication of product experts, creates duplication of area experts
  4. Geographic Region Form
    geographic regions are the primamry basis for division. popular with low tech stable products, also for diverse products that need different requirements different places.
  5. Function form
    few firms are organized this way
  6. Hybrid Forms
    Structure organized by more than one dimension at the top level.
  7. Matrix organization
    An organization structure composed of one or more superimposed organizational structures in an attempt to mesh product, regional, functional, and other expertise. (Many managers, won't always agree)
  8. Matrix Overlay
    An organization in which top level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double reporting difficulty of a matrix organization but still mesh two or more dimensions.
  9. Strategic Business Units
    Business entity with a clearly defined market, specific compeitiors, the ability to carry out its business mission, and size appropriate for control by a single manager.
  10. Reengineering
    Redesigning organizational structure, hierarchy, business systems, and processes in order to improve organizational effeciency.
  11. PBUs
    Product business units
  12. SPUs
    strategic performance units
  13. Virtual Corporation
    An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization
  14. Network corporation
    Also called a virtual corporation
  15. Horizontal corporation
    A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy
  16. Dynamic Network Structure
    breaks down the major jnctions of the firm into smaller companies coordinated by small size headquarters organization.
  17. Modular Corporations
    After finishing the job, the consortium will disband
  18. Subsidiaries
    Companies controlled by other companies through ownership of enough voting stock to elect board of directors marjorities.
  19. Afiiliates
    A term sometiems used interchangeably with subsidiaries but more forms exist than just stock ownership
  20. Decision making location factors
    • 1. product and equipment
    • 2. competence of the subsidiary management and reliance on that management by headquarters
    • 3. Size of the IC
    • 4. Detriment of a subsidiary for the benefit of the enterprise
    • 5. Subsidiary frustration
  21. subsidiary detriment
    situation in which a small loss for a subsidiary results in a greater gain for the total IC
  22. Transer pricing
    Pricing that is establised for transactions between members of the enterprise
  23. Joint Venture
    ownership split between IC and local owners
  24. Methods of maintaining control
    • 1. A management contract
    • 2. Control of the finances
    • 3. Control of the technology
    • 4. Putting people from the IC in important executive positions
  25. Reporting requirements of Subsidiaries
    • 1. Financial (existence and size of a surplus of funds)
    • 2. Technological (competitive advantage, new technology)
    • 3. Market opportunities (new or growing markets, competition, marketshare)
    • 4. Political and economic
Card Set:
International Business Chapter 13
2012-04-12 06:49:49
International Business

Organizational Design and Control
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