International Business Chapter 13
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the way that an organization formally arranges its domestic and international units and activities, and the relationships among these various organizational components
A division in the organization that is at the same level as the domestic division and is responsible for all non home country activities
avoids the duplication of product experts, creates duplication of area experts
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.
few firms are organized this way
Structure organized by more than one dimension at the top level.
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)
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.
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.
Redesigning organizational structure, hierarchy, business systems, and processes in order to improve organizational effeciency.
Product business units
strategic performance units
An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization
Also called a virtual corporation
A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy
Dynamic Network Structure
breaks down the major jnctions of the firm into smaller companies coordinated by small size headquarters organization.
After finishing the job, the consortium will disband
Companies controlled by other companies through ownership of enough voting stock to elect board of directors marjorities.
A term sometiems used interchangeably with subsidiaries but more forms exist than just stock ownership
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
situation in which a small loss for a subsidiary results in a greater gain for the total IC
Pricing that is establised for transactions between members of the enterprise
ownership split between IC and local owners
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
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
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