Session 4 - Leading and managing the global firm Flashcards
(21 cards)
Organizational structure
Is a system that outlines how activities are directed to achieve the goals of an organization
What Organizational Structure gives to people?
Defined roles, responsibilities and lines of reporting.
What are the main elements (from macro to micro) of the strategy and structure reinforce?
Environment - Strategy - Capabilities - Organization/structure, roles and responsibilities
From what the organizations as “machines” go to:
“Organisms”
How can MNE’s manage growth around the world so they can be successful locally and internationally and learning country tastes, global trends and market transitions?
Adaptation to local preferences
What strategy of the Integration-Responsiveness framework is “Low cost pressure - Low local responsiveness”?
Home replication strategy
What strategy of the Integration-Responsiveness framework is “Low cost pressure - High local responsiveness”?
Localization Strategy
What strategy of the integration-Responsiveness framework is “High cost pressure - Low local responsiveness”?
Global Standardization Strategy
What strategy of the Integration-Responsiveness framework is “High cost pressure - High local responsiveness”?
Transnational Strategy
What is the structure of “Home replication”?
International division
What are the main problems of Home replication strategy International division?
1.- Foreign subsidiary managers have less voice than domestic division heads.
2.- The international division operates in a silo, isolated from the rest of the firm.
3.- Firms often abandon this structure after initial overseas expansion.
What is the structure of “localization”?
Geographic area
What does the Geographic Area Structure?
- Organizes the MME according to different geographic areas
- Facilitate local responsiveness (it’s a strength and a weakness”
- It’s the most appropriate for a localization strategy
What’s the main problem of localization strategy?
It encourage the fragmentation of the MNE not highly autonomous, hard-to-control “fiefdoms”.
What’s the structure of Global standardization?
Product division
What does the Global Product Division Structure?
- Supports a global strategy by treating each product division as an independent entity with worldwide responsibility.
- Enhances cost efficiencies by consolidating operations globally (or regionally) and reducing duplicate efforts across countries.
What is the problem of Global Product Division Structure?
Little local responsiveness
What’s the structure of “Transnational strategy”?
Global Matrix
What is a Global Matrix in the context of a transnational strategy
-Mitigates drawbacks of both geographic area and global product division structures.
-Supports transnational strategy goals.
What are the challenges of the Transnational Strategy?
- Adds extra management layers.
- Slows decision-making.
- Increases costs with limited performance gains.
What is the core challenge of an effective transnational strategy?
- Balancing global efficiency with local responsiveness.
- Fostering open, constructive dialogue between strategic global managers and entrepreneurial country managers.
