Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-11 Different Types of International Organizations Multinational Corporation (MNC) –A firm that maintains operations in multiple countries but manages from the home country Multidomestic Corporation –An international company that decentralizes management and other decisions to the local country
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-12 Different Types of International Organizations Global Company –An international company that centralizes management and other decisions in the home country Transnational/Borderless Organization –A type of international company in which artificial geographical barriers are eliminated –Born Globals (international companies that choose to go global from inception)
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-13 Exhibit 3.4 How Organizations Go Global Hiring foreign representation or contracting with foreign managers Licensing/ Franchising Strategic Alliances Foreign Subsidiary Exporting to or importing from foreign countries LowHighDegree of Risk and Investment
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-14 How Organizations Go Global Exporting –Making products at home and selling them overseas Importing –Selling products at home that are made overseas
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-15 How Organizations Go Global Licensing and Franchising –Giving another organization the right to use brand name, technology, or product specifications Licensing (manufacturing organizations) Franchising (service organizations)
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-16 How Organizations Go Global Strategic Alliance –Partnership between an organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities
Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-17 How Organizations Go Global? Joint Venture –A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose Foreign Subsidiaries –An approach that involves a direct investment in a foreign country by setting up an separate and independent production facility or office