GMS 724 Lecture Notes - Lecture 13: Uptodate, Enterprise Resource Planning, Information Technology

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Chapter 13 the organization of international business. Organizing operations: organizing is the process of creating the structure, systems, and culture needed to implement the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s st(cid:396)ateg(cid:455). Where to assign authority is an ongoing negotiation between headquarters and the local subsidiary. In the least, negotiations highlight the fact that an mne is never completely centralized or decentralized. Few organizations could function if senior executives made all decisions. Alternatively, e-mail, voip, teleconferencing, and social networks technologies spu(cid:396) a state of (cid:862)glo(cid:271)alit(cid:455). (cid:863) the (cid:272)o(cid:374)te(cid:454)t of glo(cid:271)alit(cid:455) holds that (cid:862)(cid:271)usi(cid:374)ess flo(cid:449)s i(cid:374) e(cid:448)e(cid:396)(cid:455) di(cid:396)e(cid:272)tio(cid:374). Co(cid:373)pa(cid:374)ies ha(cid:448)e (cid:374)o (cid:272)e(cid:374)te(cid:396)s. the idea of fo(cid:396)eig(cid:374)(cid:374)ess is fo(cid:396)eig(cid:374). Co(cid:373)(cid:373)e(cid:396)(cid:272)e s(cid:449)i(cid:396)ls a(cid:374)d (cid:373)a(cid:396)ket do(cid:373)i(cid:374)a(cid:374)(cid:272)e shifts. (cid:863) o(cid:396)ga(cid:374)izi(cid:374)g (cid:449)o(cid:396)k fo(cid:396) globality encourages greater decentralization. Functional structure: groups people based on common expertise and resources, works well when global integration is more important than local responsiveness, industry. Divisional structure: divides employees based on the product, customer segment, or geographical location, duplicates functions and resources across divisions.

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