Lecture 7: Chapter 2

- adap ng to uncertainty:
o add posi on and department
o buffering and boundary spanning
 Buffering
 absorb uncertainty in environmental
 technical core and exchange of material , resource and money between
environment and organiza n
 Boundary spanning:
 detect and bring into the organiza on informa on about changes in
envionrmnet
 send informa on into environment present org in favourable light
o differen a on and integra on
o Mechanis c vs Organic (Efficiency vs learning) (stable vs rapid environment)
 Mechanis c:
 task broken down into specialized parts
 task are rigidly defined
 strict hierarchy of authority and control
 knowledge and control of tasks are centralized at top
 communica on ver cal
 organic:
 employee contribute to common task of depart
 task are adjust through employee team work
 less hierarchy of authority and control
 knowledge and control of task located anywhere in org
 communica on horizontal
- Resource Dependence:
o Org are open system: dependent on env
o Control over resource minimize dependence: reduce uncertainty
o Org can team up to share scarce resources
- Addressing Resource Dependence:
o Control Resources: Inter organiza on linkage
 ownership (acquisi on or merger)
 strategic alliance
 coopta on, interlocking directorates
 execu ve recruitment
 adver sitng and pr
o Control environment
 change domina
 poli cal lobbyin
 trade associa on
 illegi mate ac vi es
Lecture 8: Chapter 6

- Agenda:
o compe on vs coopera on
o models of interorganiza onal rela onships:
 popula on ecology
 ins tu onalism
- Compe on:
o suspicion, compe on arm’s length
o price efficiency own profits
o limited info and feedback
o legal resolu on of conflict
o minimal involvement and up front investment, separate resources
o short term contract
o contract limi ng rela onship
o always changing
- Coopera on:
o trust, addi on of value to both sides high commitmemtn
o equity, fair dealing, both profit
o electronic linkages to share key info, problem feedback and discussion
o mechanism for close coordina on
o involvement in partner product design and produc on shared resources
o long term contract
o business assistance beyond contract
o share risk + innova on + safety net
- ins tu onalism:
o says that organiza on strive for legi macy by trying to meet perceived expecta ons
from environment comprised of stakeholder norms and values
- forces:
o mime c:
 reason similar: uncertain to become similar
 events: innova on and visibility
 social basis: culturally supported
 example: benchmarking
o Coercive:
 reason similar: dependence
 events: poli cal law, rules, sanc ons
 social basis: legal
 example: pollu on controls
o Norma ve:
 reason similar: duty, obliga on
 events: professionalism, cer fica on, accredita on
 social basis: moral
 example: accoun ng standards
- Popula on Ecology:
o Focus on diversity and adap on within a popula on of org (set of org engaged in similar
pa erns of resource u liza on and outcome)
o Organiza onal form: tech, structure, products, goals, personnel
o Organiza onal niche: domain of unique environmental resources and needs
o varia on -> selec on -> reten on
Lecture 9: Chapter 7

- Globaliza on Drivers
o economies of scale : increase size, lower cost
o economies of scope: number/variety of product
o factor of product: lower cost resources, reduced gov. restric on
- Interna onal evolu on:
o Domes c:
 Strategic orienta on: domes c
 Stage of development: in tal foreign involvement
 structure: domes c + export
 market poten al: moderate, mostly
o Interna onal:
 Strategic orienta on: export oriented mutlidomes c
 Stage of development: compe ve posi on
 structure: domes c struct + interna onal division
 market poten al: large mul domes c
o mul na onal :
 Strategic orienta on: mul na onal
 Stage of development: explosion
 structure: worldwide geographic
 market poten al: very large mul na onal
o Domes c:
 Strategic orienta on: global
 Stage of development: global
 structure: matrix trans-na onal
 market poten al: whole world
- Global expansion through strategic alliance:
o Joint Venture: Separate en ty created with two or more ac ve firms as sponsors
(compe tors join forces to compete)
o Consor a: Groups of independent companies that join together to share skills,
resources, access to one another’s markets
- Designing Structure to fit Global Strategy
o Globaliza on Strategy: Global Product Strategy
 forces for global integra ons: high
 forces for na onal responsiveness: low
o Globaliza on and Mul domes c Strategy: Global Matrix Strategy
 forces for global integra ons: high
 forces for na onal responsiveness: high
o Export Strategy: Interna onal Divison
 forces for global integra ons: low
 forces for na onal responsiveness: low
o Mul domes c Strategy: Global Geographic Strategy
 forces for global integra ons: low
 forces for na onal responsiveness: high
- Interna onal Division:

-
-

- Transna onal:
o ul mate in complexity and coordina on
o goal is to maximise efficiency, responsiveness and learning
o Dis nc ve Characteris cs:
 assest/resources world wide
 flexible and ever change corporate
 subsidiary manager ini ate strategt get adopted at top
 coordina on achieved through org culture, vision and management style
- Building Global Capacity:
o challenge:
 complexity and differen a on
 need for integra on
 knowledge transfer
o mechanism:
 global team
 hq planning
 expand coordina on roles
- Cultural diff in coordina on and control:
o Na onal value system
  low power distance – equality in power
 uncertainty avoidance - high tolerance for unstructured
 Four cultural values pa erns:
 Deal-focused versus rela onship focused
 informal versus formal
 rigid me versus fluid me
 expressive versus reserved
o Globe dimension
 power distance: extent to which society expect power distribu on
 Gender egalitarianism: discourage gender role diff
 Uncertainty avoidance: extent to which society relies on rules
 Collec vism 1 (ins ituiotnal): envourage and reward collec on work
 Collec vism 2 (in group): extent to which member pride for rela on
 future orienta on: member engage in such behave
 Asser vness: confronta onal
 Performance : reward individual for innova on
 Humane: encourage altruism and caring
o Three na onal approach:
 centralized in Japan
 European decentralized
 north America: coordina on and control formalizaton
o