Global Accounting - 卓越课程中心3.0.pptVIP

International Accountingand Multinational Enterprises 上海金融学院会计学院财务管理系 王纯 Management Organization and Control of Global Operations Management Organization and Control of Global Operations Introduction This chapter outlines how strategic change is reflected in changes to a firm’s organizational structure and control system. Accounting and information systems are seen as a part of the firm’s control system. Organizational Structure Two major classifications exist for coordinating MNE activities: Structural and Formal Informal and Subtle A firm’s organization must constantly evolve to adjust to numerous external and internal factors. Failure to evolve may result in internal conflict and poor performance. Domestic Structure International Division Structure Global Structure To minimize conflict and suboptimization, the firm must go through a major reorganization. Often, the MNE adopts a global product structure or global geographic structure; The choice of structure depends upon a number of criteria related to a firm’s products and markets; Narrow, simple product lines adopt geographic structures Wide, complex and rapidly evolving products lines adopt a global structure. Global Structure (Cont.) A third organizational structure - the Global Grid/ Matrix structure also has been tried. This structure was designed to re-unite the product line and geographic dimensions of the organization. It has not been successful and has been proven unmanageable. Organizational issues strongly influence a firm’s managerial accounting system. Centralized vs. Decentralized Firms in a global environment are often neither strictly centralized or decentralized, but are also multi-domestic or global in their approach. A multi-domestic strategy is used by MNE’s whose products differ greatly from country to country, A global strategy is adopted by MNE’s when its can benefit from world wide volume in terms of reduced unit costs or superior reputation; and The term Global can occur in various c