MGTA05H3 Chapter Notes - Chapter G: Competitive Learning, Keiretsu, Financial Institution

• School: UTSC
• Department: Management (MGT)
• Course: MGTA05H3
• Professor: Murphy Lawrence

Document Summary

The virtual organization underscores how far we have come from the traditional notion of organizations: not dependent on the size or its functions, attempts to maximize fluidity, flatness and integratedness with the environment. Involves hiring external organizations to conduct work in certain functions of the company: eg. Organization will typically retain its core functions or competencies (areas that it is in the business to conduct: sticks to what it does best and outsources functions that it doesn"t wish to focus on. Organizations engage in co-operative relationships with suppliers, distributors or competitors. Aim: to improve their efficiency and flexibility in meeting new consumer needs: japanese version of networked organization (keiretsu) considered first form of the virtual organization. Involves a large bank or financial institution, a large organization and a number of smaller firms. Integrated relationships allows the large industrial organization to produce the product with financial assistance from the bank.