Globalization & Organizational Structure. Entering the Global Market Why Go Global? Why Go Global? Economies of scale Economies of scale Economies of.

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Presentation transcript:

Globalization & Organizational Structure

Entering the Global Market Why Go Global? Why Go Global? Economies of scale Economies of scale Economies of scope Economies of scope Cheaper production costs Cheaper production costs

Entering the Global Market Stages of Development Stages of Development Domestic stage Domestic stage International stage International stage Multinational stage Multinational stage Global stage Global stage

Entering the Global Market How to Go Global? How to Go Global? Licensing Licensing Joint venture Joint venture Consortia Consortia Virtual organization Virtual organization

Globalization Strategies Globalization Strategy Globalization Strategy Coca-Cola Coca-Cola Multidomestic Strategy Multidomestic Strategy Proctor & Gamble Proctor & Gamble

International Division

Global Product Division Structure

Global Geographic Division Structure

Global Matrix Structure

Global Capabilities Challenges Challenges Complexity and differentiation Complexity and differentiation Need for integration Need for integration Knowledge transfer Knowledge transfer How to Coordinate How to Coordinate Global teams Global teams Headquarters planning Headquarters planning Expanded coordination roles Expanded coordination roles

Cultural Differences Power Distance Power Distance Uncertainty Avoidance Uncertainty Avoidance

Three National Approaches Centralized Coordination Centralized Coordination Japan Japan Decentralized Approach Decentralized Approach Europe Europe Formalization Formalization United States United States

Transnational Model What is it? What is it? Four Characteristics Four Characteristics

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