BU398 Chapter Notes - Chapter 6: Normal Matrix, Organizational Structure, Global Arena
Document Summary
Chapter 6: designing organizations for the international environment. Currently, no company is isolated from global influence even smaller companies can be actively involved in international business through exports and online business. Companies focusing on a more global focus rather than domestic due to economic, technological and competitive forces. Three primary factors for expanding internationally: economies of scale. Building a global presence expands an organization"s scale of operations. Industrial revolution desire for lowest cost per unit of production: economies of scope. Scope number/variety of products offered in a variety of regions, countries and markets. Having a presence in multiple countries provides marketing power over those of similar size in fewer countries. Company can develop broad knowledge of the cultural, social, economic and other factors that affect its customers in many locations (specialize products to fit those needs: low-cost production factors. Obtain raw materials/resources at the lowest cost possible (from other countries) Especially lower labour costs most clothing companies.
