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International Business: Competing in the Global Marketplace Fifth Edition Chapter 13
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PAGE 189
13The Organization of International Business
13
Learning objectives
Identify the different kinds of organizational structures and internal control mechanisms that international businesses can use to manage global operations.
Discuss the advantages and disadvantages of centralized and decentralized decision systems.
Present the basic types of organizational forms that multinational firms use.
Describe the control systems and integrating mechanisms available to multinational firms
Show how the organizational architecture, control systems, integrating systems, and decision making choices multinational firms have available must be consistent with their strategy and industry environment
This chapter identifies the organizational architecture that international businesses use to manage and direct their global operations.
The core argument outlined in this chapter is that superior enterprise profitability requires three conditions to be fulfilled.
First, the different elements of a firm’s organizational architecture must be internally consistent.
Second, the organizational architecture must match or fit the strategy of the firm—strategy and architecture must be consistent.
Third, the strategy and architecture of the firm must not only be consistent with each other, but they also must be consistent with competitive conditions prevailing in the firm’s markets—strategy, architecture, and competitive environment must all be consistent.
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OUTLINE OF CHAPTER 13: THE ORGANIZATION OF INTERNATIONAL BUSINESS
Opening Case: Organizational Change at Unilever
Organizational Architecture
Organizational Structure
Vertical Differentiation: Centralization and Decentralization/ Horizontal Differentiation: The Design of Structure/ Integra
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