GEO 334 Study Guide - Final Guide: World Economic Forum, Multinational Corporation, Fasttrack
5 Dec 2018
School
Department
Course
Professor
Document Summary
Organizational structures must change to accommodate a firm"s evolving internationalization in response to worldwide competition. Considerable research has shown that a firm"s structure must be conducive to the implementation of its strategy. In other words, the structure must fit the strategy, or it will not work. The design of an organization, as with any other management function, should be contingency based, taking into account the variables of that particular system at that specific point in time. Major variables include the firm"s strategy, size, and appropriate technology as well as the environment where the firm operates. Given the increased complexity of the variables involved in the international context, it is no easy task to design the most suitable organizational structure and subsystems. Additional variables affecting structural choices geographic dispersion as well as differences in time, language, cultural attitudes, technology, and business practices introduce further layers of complication. A firm"s managers weigh alternatives and decide on appropriate entry strategies.
