Managing Globally.  Occasional export order  Management by domestic sales department.

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Presentation transcript:

Managing Globally

 Occasional export order  Management by domestic sales department

 Increasing volume  Export sales department The Export Department Structure

 Major corporate effort to reach foreign markets  International division The International Division Structure

 Total corporate commitment  Wholly owned foreign subsidiaries, joint ventures, etc.

Six basic types of global structures: Global product structure - product divisions are responsible for manufacturing and marketing worldwide. Global area structure - geographic divisions are responsible for all manufacturing and marketing in their respective areas. Global functional structure - functional areas (production, marketing, finance, and personnel) are responsible for the worldwide operations of their own functional area. Global customer structure - operations are structured based on distinct worldwide customer groups. Mixed or hybrid structure - may combine the other alternatives. Matrix structure - operations have reporting responsibility to more than one group (typically, product, function, or area).

 Decentralized – autonomy  Centralized – concentration/control  “Coordinated Decentralization” – overall corporate strategy with local autonomy

 Degree of involvement in international operations  Type of products  Size and importance of firm’s markets  Human resource capability  Strategic leader

 Concept: Decentralize, but link  “Not-invented-here” Syndrome  “Boundarylessness”  Intranet

OUTPUT CONTROLS  Balance sheets  Sales data  Production data  Performance reviews BEHAVIOR CONTROLS  Company policies  Manuals  Budgeting

Factors: 1. Competence 2. Adaptability 3. Personal characteristics 4. Screening

Compensation is divided into: Base salary - dependent on qualifications and responsibilities cost of living allowances foreign service premiums hardship allowances housing allowances tax-equalization plans Nonsalary-related allowances relocation allowance mobility allowance housing allowance automobile protection travel expenses temporary living expenses education allowance for families medical expenses and services Survey

 Goldmine v. Quagmire  Commit:  Time  Resources  Management

Accident v. Design