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Organizing International business
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Nature and factors of International organizational design
Nature of International organizational design Factors affecting organization structure Corporate objectives Management style Internal constraints External constraints
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Basic organizational Design
International division structure Worldwide functional structure Geographic Area structure Product organization Mixed structure Matrix structure Networked structure
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International division organisational structure
Chief Executive Marketing Finance Production VP international operations France Japan Australia
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Functional organisational structure
Organises employees around skills or other resources (marketing, production) Chief Executive Finance Production Marketing
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Geographic Area structure
Chief Executive Europe division North America division Latin America division
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Product organization structure
Chief Executive Product division A Product division B Product division C Pakistan UAE Srilanka
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matrix structure Employees are temporarily assigned to a specific project team and have a permanent functional unit Chief Executive Engineering Manager Marketing Manager Software Manager Project A Manager Project B Manager Project C Manager
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Network organisational structure
Product Development Company (Australia) Call Centre Company (NZ) Core Company Accounting Company (Australia) Manufacturing Company (Malaysia) Distribution Company (Singapore)
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Related issues in Global organization design
Centralization versus decentralization Role of subsidiary directors Non-traditional organizational arrangements Changing role if IT in organizing Need for integrating mechanisms Control system Managing corporate culture Managing change
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