BU491 Chapter Notes - Chapter 4: Harvard Business Review
Document Summary
Companies have raced to create global strategies but are forgetting about the organization structure. Businesses are not only looking for materials and suppliers in developing countries also looking for new customers and products: technology allows companies to conduct work where the best expertise exists at the lowest costs. A new structure is emerging: a t-shaped country organization: traditional structures (matrix, national) are not performing as well as they should in global markets. Old stars are turning into cash cows and vice versa. China and india are becoming sources of talent, resulting in a shift of innovation/r&d activities. There is an assumption that multinational leadership should only come from developed markets. Top managements lack of commitment to developing markets (china, india: the ambition gap. Developing countries want to grow at double digit rates, but developed countries want to stick to budget forecasts to report to wall street: the value-proposition gap.
