INTERNATIONAL

BUSINESS
Instructor: Linh Nguyen
GENERAL LEARNING OUTCOMES

International business issues

Cultures difference

Country/industry attractiveness

Entry mode

International Strategy
AGENDA

• Explain what is meant by organizational architecture

• Discuss the location of decision-making responsibilities

within a structure

• Explain how organization can be matched to strategy to

improve the performance of the international business
ORGANIZATION ARCHITECTURE
Structure: Division of the organization into
subunits; the location of decision making
responsibilities; integrating mechanisms to
coordinate the activities of subunits

Incentives & controls: reward system, metric

to mesuare the performance

Culture: norms and value systems that are

shared among the employees

Process: the manner in which decisions are

made and work is performed.

People: right people need to be recruited

Group assignment

Describe the ways that subunits of

international firms could be structured
to fix with theirs strategy
AN ORGANIZATION STRUCTURE
INTERNATIONAL DIVISION STRUCTURE
A TYPICAL PRODUCT DIVISIONAL
STRUCTURE
A WORLDWIDE AREA STRUCTURE
A GLOBAL MATRIX STRUCTURE
Group assignment

Choose the international firms and

describe their organization structure
ORGANIZATIONAL STRUCTURE
How the decision- making flow should be ?
• Arguments for centralization
• Can facilitate coordination
• Ensure that decisions are consistent with organization objective
• Give top managers the means to bring changes
• Avoid the duplication of activities

• Arguments for decentralization

• Top management have more time to focus on critical issues by
delegating more routine issues to lower-level managers.
• Create motivation scheme, due to people are given individual freedom
and control over their work
• Create flexibility, more rapid response to environmental changes
• Result in better decisions
SUPPORTING LEARNING MATERIAL
Managing people Email from Elon Musk about how
communication in enterprises should be

Link: https://www.youtube.com/watch?v=f60dheI4ARg
Link: http://inc-asean.com/grow/email-elon-musk-tesla-employees-describes-great-
communication-looks-like/
Elon Musk’s approach

Don't let hierarchical structures make things less efficient.

"Communication should travel via the

shortest path necessary to get the job done,
not through the 'chain of command'. Any
manager who attempts to enforce chain of
command communication will soon find
themselves working elsewhere," Musk said in
his internal letter.
A GLOBAL MATRIX STRUCTURE