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International Business Environments and Operations, 13/e Global Edition
International Business Environments and Operations, 13/e Global Edition
International Business Environments and Operations, 13/e Global Edition
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Copyright © 2011 Pearson Education
Chapter 15
The
Organization
of
International
Business
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Chapter Objectives
• Profile the evolving understanding of organizing a
company for international business
• Describe the antecedents and features of traditional
structures
• Describe the antecedents and features of contemporary
structures
• Study the systems used to coordinate and control
international activities
• Profile the role and characteristics of organization culture
• Link the ideas of strategy and organization in the
international company
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Organizing Operations
15-4
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Factors
Affecting Organizing
Operations
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Change: The Critical Factor
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Organization Structure
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Vertical Differentiation
• Functional Structure
– Advantages and Disadvantages
• Divisional Structure
– International Division
– Product Division
– Geographic Division
• Matrix Structure
– Unity of Command Principle
• Mixed Structure
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Contemporary Structures
• Network Structure
• Virtual Organization
• Pitfalls of Contemporary Structures
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Coordination and Control Systems
• Approaches to Coordination:
– Standardization
– Plan
– Mutual Adjustment
• Control Methods:
– Market
– Bureaucratic
– Clan
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Control Tools
• Reports
• Visits to Subsidiaries
• Cost and Accounting Comparisons
• Evaluative Metrics
• Information Systems
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Organization Culture
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Future: The Role and Rise of
Corporate Universities
• Managers believe companies must purposefully
develop shared values
• Worldwide, more than 1,000 new corporate
universities have begun operations
• Corporate universities—physical and virtual
institutions that:
– Lead training efforts
– Facilitate learning
– Help upgrade competencies
– While advocating the philosophical ideals of the
company’s culture
15-14
Copyright © 2011 Pearson Education
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher.
Printed in the United States of America.
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Copyright © 2011 Pearson Education