MGT 357 Chapter Notes - Chapter 8: Strategic Business Unit, Hybrid Organization, Market Saturation
Document Summary
Must change to accommodate a firms" evolving internationalization in response to worldwide competition. Internationalization - process by which a firm gradually changes in response to international competition, domestic market saturation, and the desire for expansion, new markets, cost effectiveness, and diversification. Structural evolution (stages model) stages of change in an organizational structure that follow the evolution of the internationalization process. Typical ways in which firms organize their international activities: Subsidiary managers should have a great deal of autonomy and be able to adapt and respond quickly to serve local markets. Global functional structure - operations are integrated into the activities and responsibilities of each department to gain functional specialization and economies of scale. Used primarily by small firms with highly centralized systems. Appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers. Results in plants that are highly integrated across products and serve single or similar markets.
