BUSI 610 Chapter 6: Designing Organizations for the International Environment
14 Mar 2017
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Document Summary
Chapter 6: designing organizations for the international environment. Stages of international development (4: domestic, strategic orientation is domestically orientated, initial foreign involvement, domestic structure plus export department, market potential is moderate, mostly domestic. Joint venture: separate entity with two or more active firms as sponsors, popular approach to sharing development and production costs and penetrating new markets. Challenges of global design (3: complexity and differentiation, need for coordination, transfer of knowledge and innovation. Coordination: refers to the quality of collaboration across organizational units. Global product structure: product divisions take responsibility for global operations in their specific product area. In various countries, selling the products and services created by the domestic divisions, opening subsidiary plants, and in general moving the organization into more sophisticated international operations. Global geographic structure: divides the world into geographic regions, with each geographic division reporting to the. Ceo: each division has full control of functional activities within its geographic area.
