国际管理 international management:International Strategic Management.ppt
11-1McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Part Three:International Strategic ManagementInternational Management,4th ed.11-2McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.International Management,4th ed.Hodgetts and LuthansChapter ElevenOrganizing International Operations11-3McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.EXAMINE the major types of organizational structures used in handling international operationsANALYZE the advantages and disadvantages of each type of organizational structure,including the conditions that make one preferable to othersDESCRIBE the recent,nontraditional organizational arrangements coming out of mergers,joint ventures,keiretsus,and other new designs including electronic networks and product development structuresDISCUSS the value of subsidiary boards of directors in overseas operationsEXPLAIN how organizational characteristics such as formalization,specialization,and centralization influence how the organization is structured and functionsObjectives of the Chapter11-4McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Basic Organizational StructuresA number of basic structures exist that permit an MNC to compete internationallyStructure must meet the need of both the local market and the home-office strategy of globalizationContingency approachBalances the need to respond quickly to local conditions with the pressures for providing products globallyMost MNCs evolve through certain basic structural arrangements in international operations11-5McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-1 Organizational Consequences of InternationalizationPressure for local responsivenessLowHighPressure for globalizationLowHighAircraft Cameras Consumer electronics ComputersAutomobilesTelecommunicationsAerospaceSynthetic fibersCementSteelClothingPackaged goods11-6McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-2 Use of Subsidiaries during the EarlyStage of InternationalizationPersonnelProductionMarketingFinanceChief Executive OfficerFranceJapanEgyptAustraliaArgentinaV.P.InternationalOperations11-7McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.International Division StructureInternational Division:look after both the exports and foreign investment.A division devoted exclusively to build and cultivate foreign businessAdvantage:give international sale much greater support and attention11-8McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-3 International Division StructurePersonnelProductionMarketingFinanceChief Executive OfficerDomesticDivisionPaintDomesticDivisionToolsInternationalDivisionDomesticDivisionFurnitureDomesticDivisionHardwareJapanAustraliaItalyOfficeOperationsMarketingGovernmentRelations11-9McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Basic Organizational Structures(cont.)Global Structural Arrangements Global Product DivisionStructural arrangement in which domestic divisions are given worldwide responsibility for product groupsGlobal Area DivisionStructure under which global operations are organized on a geographic rather than a product basisGlobal Functional DivisionStructure which organizes worldwide operations primarily based on function and secondarily on product Matrix Organization StructureStructure that is a combination of a global product,area,or functional arrangement11-10McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Global Product Division StructureAs the diversity of foreign products increases,many successful companies have adopted global product division structure.All functional activities as R&D,production and marketing are controlled by a product group.11-11McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-4 Global Product Division StructurePersonnelProductionMarketingFinance Chief Executive OfficerProductDivisionAProductDivisionBProductDivisionProductDivisionDProductDivisionECSouthAmericaAfricaEuropeAustraliaFar EastMarketingFinancePersonnelGreat BritainFranceItalyNetherlandsGermanyProductionAmericaProduction11-12McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.The Area Division StructureStrategic decision making is shifted to regional/or country managerCapture the majority of efficient and effective advantages.(Few have the economic efficiency)Flexible and rapid responseCommunication efficiencies and etc.11-13McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-5 Global Area Division StructurePersonnelProductionMarketingFinanceChief Executive OfficerNorthAmericaSouthAmericaEuropeAsiaAfricaGreat BritainFranceItalyNetherlandsGermany11-14McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-6 Global Functional StructureDomesticProductionProduct AProduct BProduct CProduct DForeignProductionProduct AProduct BProduct CProduct DProductionDomesticMarketingProduct AProduct BProduct CProduct DForeignMarketingProduct AProduct BProduct CProduct DMarketingFinanceChief Executive Officer11-15McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Global Functional DivisionAdvantagesEmphasizes functional expertiseTight centralized controlRelatively lean managerial staffDisadvantagesDifficulty co-ordinating manufacturing and marketingDifficulty managing multiple product linesOnly CEO can be held accountable for profits11-16McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Figure 11-7 Multinational Matrix StructurePersonnelProductionMarketingFinanceChief Executive OfficerNorth AmericaIndustrial GoodsEuropeManager,Industrial GoodsNorth AmericaManager,Industrial GoodsEurope11-17McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Global matrix structureAdvantages:Global resource configuration,and quick response.Vertical information communication and the horizontal information communicationDisadvantages:Confuse country managers who serve two bosses,who are often in conflictLarge management costs afford for flexibility11-18McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.The Global E-Corporation Network StructureSuppliersContract manufacturersSupplierexchangesManufacturersVirtualmanufacturersWholesaledistributorsLogisticsexchangesLogisticsprovidersLogisticsprovidersCustomerexchangesCustomersSupply Chain NetworkInformation flowGoods flow11-19McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Nontraditional Organizational ArrangementsMergers and AcquisitionsPurchasing MNC attempts to promote synergy while encouraging local initiative by the acquired firmJoint Ventures and Strategic AlliancesEach party contributes to the undertaking and coordinates its efforts for the overall benefit KeiretsuLarge,often vertically integrated group of companies that work closely with each otherMembers bound by cross-ownership,long-term business dealings,interlocking directorates,and social ties11-20McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Nontraditional Organizational Arrangements(cont.)Electronic Network Form of OrganizationElectronic freelancersIndividuals who work on a project for a company,usually via the InternetMove on to new employment at the completion of an assignmentDeliver outsourcing function on-lineOrganizational SynergyMNCs leverage their knowledge and resources worldwideIncreased movement toward making synergy work correctly11-21McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Use of Subsidiary Boards of DirectorsSubsidiary boardA board that overseas and monitors the operations of a foreign subsidiaryUsed to:Advise,approve,and appraise local managementHelp the unit to respond to local conditionsAssist in strategic planningSupervise the subsidiarys ethical conduct11-22McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Organizational Characteristics of MNCsFormalizationUse of defined structures and systems in decision making,communicating,and controllingSpecializationOrganizational characteristic that assigns individuals to specific,well-defined tasksCentralizationCentralizationManagement system under which important decisions are made at the topDecentralizationPushing decision making down the line and getting the lower-level personnel involved11-23McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Organizational Characteristics of MNCs(cont.)Putting Organizational Characteristic in PerspectiveMNCs tend to organize international operations in a manner similar to that used at homeFuture challenge is to bring subsidiary organizational characteristics into line with local customs and cultures11-24McGraw-Hill/Irwin 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.Seminar topicCase Material:Scotch-Brite(3M)page 295Prepared Question:Q1 What are the general implications for 3M Canada of trying to shift to a regional product mandate?Q2:What does 3M Canada(and 3M Worldwide)stand to gain/lose if the proposal for a regional product mandate in Perth is approved?Q3:What are the strengths and weaknesses of the process that subsidiaries follow within 3M to move a mandate proposal forward?