卡伦国际企业管理第6版-(15)课件

8OrganizationalDesignsforMultinationalCompanies8OrganizationalDesignsforMuLearningObjectives(1of2)Understandthecomponentsoforganizationaldesign.Knowthebasicbuildingblocksoforganizationstructure.Understandthestructuraloptionsformultinationalcompanies.Knowthechoicesmultinationalshaveintheuseofsubsidiaries.LearningObjectives(1of2)UnLearningObjectives(2of2)Seethelinksbetweenmultinationalstrategiesandstructures.Understandthebasicmechanismsoforganizationalcoordinationandcontrol.Knowhowmultinationalcompaniesusecoordinationandcontrolmechanisms.Understandtheneedforknowledgemanagementsystemswithinorganizations.LearningObjectives(2of2)SeOrganizationalDesignThebestmultinationalstrategiesdonotguaranteesuccess.Managersmustdesigntheirorganizationswiththebestmechanismstocarryoutdomesticandinternationalstrategies.OrganizationalDesign:HoworganizationsstructuresubunitsandusecoordinationandcontrolmechanismstoachievetheirstrategicgoalsOrganizationalDesignThebestTheNatureof

OrganizationalDesign(1of2)Twobasicquestionsinvolvedindesigninganorganization:Howshallwedividetheworkamongtheorganization’ssubunits?Howshallwecoordinateandcontroltheeffortsoftheunitswecreate?Insmallorganizations,thereislittlereasontodividework.EveryonedoesthesamethingandeverythingTheNatureof

OrganizationalTheNatureof

OrganizationalDesign(2of2)Asorganizationsgrow,thereisaneedtodivideworkintospecializedjobsandtheorganizationintospecializedsubunits.Onceanorganizationhasspecializedsubunits,managersmustdevelopmeasurestocoordinateandcontroltheirefforts.Decision-makingmaybecentralizedordecentralized.Thereisnoonebestorganizationaldesign.TheNatureof

OrganizationalTheBasicFunctionalStructure(1of2)InaFunctionalStructure,departmentsperformseparatebusinessfunctionssuchasmarketingormanufacturing.Thefunctionalstructureisthesimplestorganization.Mostsmallerorganizationshavefunctionalstructures.Evenlargeorganizationshavefunctionalsubunits.Organizationschooseafunctionalstructureforitsefficiency.TheBasicFunctionalStructureTheBasicFunctionalStructure(2of2)Efficienciesarisefromeconomiesofscaleineachfunctionbecauseofcostsavingswhenalargenumberofpeopledothesamejobinthesamelocation.Coordinationisdifficult,asfunctionalunitsareseparatedfromeachotherandservefunctionalgoals.Thefunctionalstructureworksbestwhenthefirmhasfewproducts,locations,andtypesofcustomers.Worksbestinastableenvironment,withminimalneedforadaptation.TheBasicFunctionalStructureExhibit8.1:

ABasicFunctionalStructureExhibit8.1:

ABasicFunctionTheBasicProductandGeographicStructures(1of2)ProductStructure:Buildingdepartmentsorsubunitsaroundaparticularproduct.GeographicStructure:Buildingdepartmentsorsubunitsbasedonaparticulargeographicregion.ProductandGeographicunitsmuststillperformallofthefunctionaltasksofabusiness.Functionaltasksareduplicatedforeachunit,leadingtolossofeconomiesofscale,andlossofefficiency.TheBasicProductandGeographTheBasicProductandGeographicStructures(2of2)But,suchinefficienciesdisappearascustomergroupsandproductsproliferate.Andevenforsmallorganizations,aproductorgeographicunitmayoffercompetitiveadvantages:Itallowsacompanytoservecustomerneedsthatvarybyregionorproduct.Managerscanquicklyidentifycustomerneedsandadaptproducts.TheBasicProductandGeographExhibit8.2:

BasicProductStructureExhibit8.2:

BasicProductStExhibit8.3:

BasicGeographicStructureExhibit8.3:

BasicGeographicHybridStructuresFeworganizationsadoptpurelyorganizationalforms.Eachorganizationhasuniquetrade-offsbasedonefficiency,producttypes,andcustomers’needs.Companiesdesignorganizationswithmixturesofstructuresthatwillbestimplementtheirstrategies.Mixed-formorganizationsarecalledHybridStructures.AHybridStructuremixesfunctional,geographic,andproductunits.HybridStructuresFeworganizatOrganizationalStructures

toImplement

MultinationalStrategiesWhenacompanyfirstgoesinternational(asapassiveexporter),itseldomchangesitsstructure.Eventhoughexporting,itpreferstorelyonEMCsandETCsratherthanchangeorganizationalstructure.Similarly,alicensingstrategyhaslittleimpactondomesticstructure.However,wheninternationalsalesbecomemorecentral,thestructureneedstobechanged.OrganizationalStructures

toTheExportDepartmentTheExportDepartmentcoordinatesandcontrolsacompany’sexportoperations.TheExportdepartment:IscreatedwhenexportsbecomesignificantDealswithinternationalsalesofallproductsSalesrepresentativesinothercountriesmayreporttotheExportDepartmentmanager.TheExportDepartmentTheExporExhibit8.4:

AFunctionalStructurewithanExportDepartmentExhibit8.4:

AFunctionalStrForeignSubsidiaries(1of3)ForeignSubsidiariesaresubunitsofthemultinationalcompanythatarelocatedinanothercountryTypesofforeignsubsidiaries:AMinireplicaSubsidiaryisascaleddownversionoftheparentfirm.Itusesthesametechnologyandproducesthesameproductsastheparentfirm.ATransnationalSubsidiarysupportsamultinationalfirmstrategybasedonlocationadvantages.Ithasnofirmwideformorfunction.Eachsubsidiarycontributeswhatitdoesbestormostefficientlyanywhereintheworld.ForeignSubsidiaries(1of3)ForeignSubsidiaries(2of3)Mostsubsidiariesareneitherpureminireplicasnorpuretransnationals.Foreignsubsidiariestakemanyformsandhavemanyfunctions.Foreignsubsidiariesarethestructuralbuildingblocksforrunningmultinationals.ForeignSubsidiaries(2of3)ForeignSubsidiaries(3of3)Multinationalschoosethemixoffunctionsfortheirforeignsubsidiariesbasedon:Thefirm’smultinationalstrategyorstrategies;Thesubsidiaries’capabilitiesandresources;Theeconomicandpoliticalriskofbuildingandmanagingasubunitinanothercountry;Howthesubsidiariesfitintotheoverallmultinationalorganizationalstructure.ForeignSubsidiaries(3of3)InternationalDivision(1of3)TheInternationalDivisiondiffersfromtheexportdepartmentinseveralways:Itislargerandhasgreaterresponsibilities.Ithasmoreextensivestaffwithinternationalexpertise.Itisresponsibleformanagingexports,internationalsales,negotiatingcontracts,andmanagingforeignsubsidiaries.Itistheusualstepaftertheexportdepartment.Itdealswithallproducts.Itmanagesoverseassalesforceandmanufacturingsites.InternationalDivision(1of3InternationalDivision(2of3)TheInternationalDivisionhasdeclinedinpopularityamonglargemultinationals.Itisnotconsideredeffectiveformultiproductcompaniesoperatinginmanycountries.However,forcompaniesofmoderatesizewithlimitednumbersofproductsorcountrylocations,theInternationalDivisionremainsapopularandeffectivestructure.InternationalDivision(2of3Exhibit8.5:

InternationalDivisioninaDomesticProductStructureExhibit8.5:

InternationalDiInternationalDivision(3of3)ThereareseveralstructuraloptionstodealwiththeshortcomingsoftheInternationalDivision:WorldwideproductstructureWorldwidegeographicstructureMatrixstructureTransnationalnetworkstructureInternationalDivision(3of3Worldwide

GeographicStructure(1of2)IntheWorldwideGeographicStructure,regionsorlarge-marketcountriesbecomethegeographicdivisionsofthemultinationalcompany.Theprimaryreasontoadoptthisstructureistoimplementamultidomesticorregionalstrategy.Differentiationofproductsorservicesrequiresanorganizationaldesignwithmaximumgeographicflexibility.Worldwide

GeographicStructurWorldwide

GeographicStructure(2of2)IntheWorldwideGeographicStructure,regionsorlarge-marketcountriesbecomethegeographicdivisionsofthemultinationalcompany.(cont’d)Thesemiautonomoussubunitsprovideflexibilitytomeetlocalneeds.Country-leveldivisionsusuallyexistonlywhenacountry’smarketsizeissufficientlylargetosupportitsownorganization.Separatedivisionsmakesenseforlargemarketcountries.Worldwide

GeographicStructurExhibit8.6:

RoyalVopak’sWorldwide

GeographicStructureExhibit8.6:

RoyalVopak’sWoWorldwideProductStructureProductdivisionsformthebasicunitsoftheWorldwideProductStructure:Eachproductdivisionisresponsibleforproducingandsellingitsproductsorservicesthroughouttheworld.Itmaybetheidealstructuretoimplementaninternationalstrategyinwhichthefirmgainseconomiesofscalebysellingworldwideproductactivitiesbasedathome.Thistypeofstructuresacrificestheregionalorlocaladaptationstrengthsderivedfromageographicalstructure.WorldwideProductStructurePrExhibit8.7:

WorldwideProductStructureExhibit8.7:

WorldwideProducHybridsBothWorldwideProductStructureandWorldwideGeographicStructurehaveadvantagesanddisadvantages:AProductStructuresupportsglobalproducts.AGeographicStructureemphasizeslocaladaptation.Multinationalsoftenwantbothabilities.Toachievethis,mostmultinationalsuseaHybridformofstructure,whichcombinesboth.HybridsBothWorldwideProductWorldwideMatrixStructures(1of3)Tobalancethebenefitsofgeographicandproductstructures,andtocoordinatetheirsubunits,somemultinationalscreateaWorldwideMatrixStructure:Unlikehybrids,itisasymmetricalorganizationwithequallinesofauthorityforworldwideproductgroupsandgeographicaldivisions.TheGeographicDivisionsfocusonnationalresponsiveness.TheProductDivisionsfocusonfindingglobalefficiencies.WorldwideMatrixStructuresWorldwideMatrixStructures(2of3)AWorldwideMatrixStructure:BalancesthebenefitsproducedbyareaandproductstructuresWorksbestwithnearequaldemandsfrombothsidesRequiresextensiveresourcesforcommunicationandcoordinationRequiresmiddleandupperlevelmanagerswithgoodhumanrelationsskillsIntheory,producesqualitydecisionsWorldwideMatrixStructuresExhibit8.8:

WorldwideMatrixStructureExhibit8.8:

WorldwideMatrixWorldwideMatrixStructures(3of3)ProblemswithWorldwideMatrixStructures:SlowdecisionmakingprocessToobureaucraticToomanymeetingsandtoomuchconflictResult:Somecompanieshaveabandonedtheirmatrixesandreturnedtoproductstructures.Othershaveredesignedtheirmatrixstructurestobemoreflexiblewithspeedierdecisionmaking.WorldwideMatrixStructuresTheTransnationalNetworkStructure(1of3)Unlikethesymmetricalmatrixstructure,The

TransnationalNetworkhasnobasicform,symmetryorbalancebetweengeographicandproductdivisions.Instead,The

TransnationalNetworklinksdifferentfunctional,product,andgeographicsubsidiariesdispersedworldwide.Nodes,unitsatthecenterofthenetwork,coordinateproduct,functionalandgeographicinformation.TheTransnationalNetworkStruTheTransnationalNetworkStructure(2of3)Notwosubunitsarealike.Transnationalunitsevolvetotakeadvantageofresources,talentandmarketopportunitieswherevertheyexistintheworld.Resources,peopleandideasflowinalldirections.TheTransnationalNetworkStruTransnationalNetworkStructures:AnExample(1of2)TheDutchmultinationalPhilipsElectronicsN.V.worksin60differentcountries,makingproductsasdiverseasdefensesystemsandlightbulbs.Philipshas8productdivisionswithmorethan60subgroupsbasedonproductsimilarity.Theproductdivisionshavesubsidiaries,whichmayfocusononlyoneproductoronanarrayofproducts.SubsidiariescanspecializeinR&D,sales,etc.Someunitsarehighlyindependent,sometightlycontrolled.TransnationalNetworkStructurTransnationalNetworkStructures:AnExample(2of2)Philipsdividestheworldintothreegroups:KeycountriessuchastheNetherlandsandtheUnitedStatesproduceforlocalandworldmarkets,andcontrollocalsalesLargecountriessuchasMexicoandBelgiumhavesomelocalandworldwideproductionfacilitiesandlocalsales.Localbusinesscountriesaresmallercountriesthatareprimarilysalesunitsandthatimportproductsfromtheproductdivisions’worldwideproductioncentersinothercountries.TransnationalNetworkStructurExhibit8.9:

GeographicLinksinthePhilipsTransnationalStructureExhibit8.9:

GeographicLinksExhibit8.10:

ProductLinksinthePhilipsTransnationalStructureExhibit8.10:

ProductLinksiTheTransnationalNetworkStructure(3of3)ThebasicstructuralframeworkofTheTransnationalNetworkhas3components:Dispersedsubunitsaresubsidiarieslocatedanywhereintheworldtheymaybenefitthefirm.SpecializedOperationsaresubunitsthatspecialize,whetherinproductlines,researchormarketing.InterdependentRelationshipsmustexisttomanagethedispersedandspecializedsubunitswhichshareresourcesandinformationcontinuously.TheTransnationalNetworkStruMetanationalStructureLargeentrepreneurialmultinationalCantapintopocketsofinnovation,technology,andmarketslocatedaroundtheworldAnevolutionofthetransnationalnetworkstructurethatdevelopsextensivesystemstoencourageorganizationallearningandentrepreneurialactivitiesMetanationalStructureLargeenBeyondtheTransnational:

TheMetanational?(1of2)Structureformultinationalfirmscontinuestoevolve.AnewstructureisemergingcalledTheMetanational,alarge,entrepreneurialmultinationalfirmabletotapintohiddenpocketsofinnovation,technologyandmarkets,especiallyemergingmarketsworldwide.TheMetanationalissimilartotheTransnational:Itisanetworked,butcenterlessorganizationDecision-makingresideswiththesubunits.BeyondtheTransnational:

TheBeyondtheTransnational:

TheMetanational?(2of2)TheMetanationalisdifferentfromtheTransnationalinthat:Ithasanoverridingobjectivetolearnfromanywhereintheworld,andtosharethatknowledgewitheveryoneinthecompany.TheMetanationalorganizationusesthelatestinvirtualconnectivitytolinkteammembersworldwide.BeyondtheTransnational:

TheCharacteristics

ofMetanationals(1of2)ThecharacteristicsoftheMetanationalstructureare:NonstandardbusinessformulasforanylocalactivityLookingtoemergingmarketsassourcesofknowledgeandideas,notjustforlocallaborCreatingacultureandadvancedcommunicationsystemthatsupportinggloballearningExtensiveuseofstrategicalliancestogainknowledgeforvariedsourcesCharacteristics

ofMetanationCharacteristics

ofMetanationals(2of2)ThecharacteristicsoftheMetanationalstructure(cont’d):HighlevelsoftrustbetweenpartnerstoencourageknowledgesharingAcenterlessstructurethatmovesstrategicfunctionsawayfromheadquartersandtomajormarketsAdecentralizationofdecisionmakingtomanagerswhoservekeycustomersandstrategicpartnersCharacteristics

ofMetanationMultinationalStrategyandStructure:AnOverviewMostcompaniessupportearlyinternationalizationeffortswithexportdepartments.Dependingonglobalizationstrategy,theyevolveintoproductorgeographicstructure.Pressuresforlocaladaptationandglobalefficienciesmovetomatrixortransnationalnetworkstructures.Mostcompaniesneverquitereachapurestructure,andinstead,adoptahybridstructure.MultinationalStrategyandStrExhibit8.11:

MultinationalStrategy,Structure,andEvolutionExhibit8.11:

MultinationalSControland

CoordinationSystems(1of2)Althoughdifferentsubunitsperformspecializedtasks,managersmustdesignorganizationalsystemstocontrolandcoordinatetheiractivities.ControlSystemshelplinktheorganizationvertically,upanddowntheorganizationalhierarchyintwoways:TheymeasureormonitorperformanceofthesubunitsTheyprovidefeedbackoneffectivenesstosubunitmanagersControland

CoordinationSystControland

CoordinationSystems(2of2)CoordinationSystemslinktheorganizationhorizontally.CoordinationSystemsprovideinformationflowsamongsubsidiariessothattheycancoordinatetheiractivities.Example:FordplanstouseadvancedinformationsystemssothatdesignersinEurope,theU.S.andJapancancoordinatetheirdesigneffortsfortheworldmarket.Controland

CoordinationSystDesignOptionsfor

ControlSystemsTherearefourbroadtypesofcontrolsystems:1.Outputcontrolsystems2.Bureaucraticcontrolsystems3.Decision-makingcontrolsystems4.CulturalcontrolsystemsDesignOptionsfor

ControlSyOutputControlSystems1.OutputControlSystems:Assessestheperformanceofaunitbasedonresults,notontheprocessusedtoachievethoseresultsResponsibilityforprofitisthemostcommonoutputcontrol.Example:aProfitCenter.OutputControlSystems1.OutpuBureaucraticControlSystems;

Decision-MakingControlSystems2.BureaucraticControlSystems:Focusesonmanagingbehaviors,notoutcomeExamplesincludebudgets,statisticalreports,andcentralizationofdecision-making.Budgetssetfinancialtargetsforexpenditures.Statisticalreportsprovideinformationtotopmanagementonnon-financialoutcomes.Standardoperatingprocedures(SOPs)providerulesthatidentifyapprovedwaysofbehaving.

BureaucraticControlSystems;

BureaucraticControlSystems;

Decision-MakingControlSystems3.Decision-makingControlSystems:Theleveloftheorganizationwheremanagershavetheauthoritytomakedecisions.Indecentralizedorganizations,lower-levelmanagersmakemanyimportantdecisions.Incentralizedorganizations,higher-levelmanagersmakemostimportantdecisions.Transnationalstructuresdonothaveatendencyforcontrolineitherdirection.BureaucraticControlSystems;

CulturalControlSystems4.CulturalControlSystems:Useorganizationalculturetocontrolemployees’behaviorsandattitudesStrongorganizationalculturesdevelopsharednorms,values,believesandtraditionsSuchculturesencouragehighlevelsofcommitmentandsupportfortheorganization.CulturalControlSystems4.CulExhibit8.12:

UseofControlMechanismsinMultinationalOrganizationalStructuresExhibit8.12:

UseofControlDesignOptionsforCoordinationSystemsThereare6basichorizontalcoordinationsystems:TextualCommunication:e-mail,memos,andreportsDirectContact:face-to-faceinteractionofemployeesLiaisonRoles:partofaperson’sjobinonedepartmenttocommunicatewithpeopleinanotherdepartmentTaskForces:temporaryteamscreatedtosolveaparticularorganizationalproblemFull-timeIntegrators:cross-unitcoordinationisthemainjobresponsibilityDesignOptionsforCoordinatioCoordinationSystems:TeamsTeams:(groupsofemployeesworkingtogether)givecompaniestheabilitytobettercoordinatetheworkandexpertiseofwidelydispersedindividualsDevelopandlaunchnewproductsBecomemoreflexibleArepermanentunitsoftheorganizationArethestrongestcoordinationmechanismsCoordinationSystems:TeamsTeaGlobalVirtualTeamsGlobalVirtualTeams:groupsofpeoplefromdifferentpartsoftheworldwhoworktogetherbyusinginformationandcommunicationtechnologiessuchasintranets,webmeetings,WIKI’s,e-mailsandinstantmessagingSuchteamsfacesignificantchallengesduetodiverselanguagesandculturalbackgroundslocatedindifferentpartsoftheworld.GlobalVirtualTeamsGlobalVirHowToGainEffective

GlobalVirtualTeamsStepsamultinationalcantaketohelpglobalteamstofunctioneffectively:Buildrelationshipsandtrust.Payattentiontoprojectplanningandholdprojectprogressmeetingsregularly.Providecultural,language,andactive-listeningtraining.HowToGainEffective

GlobalKnowledgeManagement(1of2)KnowledgeManagementconsistsofthesystems,mechanisms,andotherdesignelementsofanorganizationtoensurethattherightformofknowledgeisavailabletotherightindividualattherighttime.Managingknowledgecangivemultinationalcompaniesthemeanstocreatetheglobalflexibilitytheywillneedtosurviveandprosper.KnowledgeManagement(1of2)KKnowledgeManagement(2of2)Todevelopaneffectiveknowledgemanagementsystem:Identifypotentialbarrierstoknowledgesharingwithintheorganization.Assessthedegreetowhichthesebarriersexistandimplementactiontoreducetheireffects.Theorganizationalstructureshouldbealignedwiththeneedforknowledgemanagement.KnowledgeManagement(2of2)TExhibit8.13:

KnowledgeManagementBarriersExhibit8.13:

KnowledgeManagSummaryGoodstrategiesdonotguaranteesuccess.TheMNCalsoneedsagoodorganizationalstructuretoachieveitsgoals.TheMNCneedstherightorganizationaldesigntocarryoutitsstrategicintent,goalsandobjectives.Chapter8reviewsbasicorganizationalstructuresanddiscussesinternationalorganizationaldesignsandstructures.Chapter8alsodiscussesknowledgemanagementsystems.SummaryGoodstrategiesdonot8OrganizationalDesignsforMultinationalCompanies8OrganizationalDesignsforMuLearningObjectives(1of2)Understandthecomponentsoforganizationaldesign.Knowthebasicbuildingblocksoforganizationstructure.Understandthestructuraloptionsformultinationalcompanies.Knowthechoicesmultinationalshaveintheuseofsubsidiaries.LearningObjectives(1of2)UnLearningObjectives(2of2)Seethelinksbetweenmultinationalstrategiesandstructures.Understandthebasicmechanismsoforganizationalcoordinationandcontrol.Knowhowmultinationalcompaniesusecoordinationandcontrolmechanisms.Understandtheneedforknowledgemanagementsystemswithinorganizations.LearningObjectives(2of2)SeOrganizationalDesignThebestmultinationalstrategiesdonotguaranteesuccess.Managersmustdesigntheirorganizationswiththebestmechanismstocarryoutdomesticandinternationalstrategies.OrganizationalDesign:HoworganizationsstructuresubunitsandusecoordinationandcontrolmechanismstoachievetheirstrategicgoalsOrganizationalDesignThebestTheNatureof

OrganizationalDesign(1of2)Twobasicquestionsinvolvedindesigninganorganization:Howshallwedividetheworkamongtheorganization’ssubunits?Howshallwecoordinateandcontroltheeffortsoftheunitswecreate?Insmallorganizations,thereislittlereasontodividework.EveryonedoesthesamethingandeverythingTheNatureof

OrganizationalTheNatureof

OrganizationalDesign(2of2)Asorganizationsgrow,thereisaneedtodivideworkintospecializedjobsandtheorganizationintospecializedsubunits.Onceanorganizationhasspecializedsubunits,managersmustdevelopmeasurestocoordinateandcontroltheirefforts.Decision-makingmaybecentralizedordecentralized.Thereisnoonebestorganizationaldesign.TheNatureof

OrganizationalTheBasicFunctionalStructure(1of2)InaFunctionalStructure,departmentsperformseparatebusinessfunctionssuchasmarketingormanufacturing.Thefunctionalstructureisthesimplestorganization.Mostsmallerorganizationshavefunctionalstructures.Evenlargeorganizationshavefunctionalsubunits.Organizationschooseafunctionalstructureforitsefficiency.TheBasicFunctionalStructureTheBasicFunctionalStructure(2of2)Efficienciesarisefromeconomiesofscaleineachfunctionbecauseofcostsavingswhenalargenumberofpeopledothesamejobinthesamelocation.Coordinationisdifficult,asfunctionalunitsareseparatedfromeachotherandservefunctionalgoals.Thefunctionalstructureworksbestwhenthefirmhasfewproducts,locations,andtypesofcustomers.Worksbestinastableenvironment,withminimalneedforadaptation.TheBasicFunctionalStructureExhibit8.1:

ABasicFunctionalStructureExhibit8.1:

ABasicFunctionTheBasicProductandGeographicStructures(1of2)ProductStructure:Buildingdepartmentsorsubunitsaroundaparticularproduct.GeographicStructure:Buildingdepartmentsorsubunitsbasedonaparticulargeographicregion.ProductandGeographicunitsmuststillperformallofthefunctionaltasksofabusiness.Functionaltasksareduplicatedforeachunit,leadingtolossofeconomiesofscale,andlossofefficiency.TheBasicProductandGeographTheBasicProductandGeographicStructures(2of2)But,suchinefficienciesdisappearascustomergroupsandproductsproliferate.Andevenforsmallorganizations,aproductorgeographicunitmayoffercompetitiveadvantages:Itallowsacompanytoservecustomerneedsthatvarybyregionorproduct.Managerscanquicklyidentifycustomerneedsandadaptproducts.TheBasicProductandGeographExhibit8.2:

BasicProductStructureExhibit8.2:

BasicProductStExhibit8.3:

BasicGeographicStructureExhibit8.3:

BasicGeographicHybridStructuresFeworganizationsadoptpurelyorganizationalforms.Eachorganizationhasuniquetrade-offsbasedonefficiency,producttypes,andcustomers’needs.Companiesdesignorganizationswithmixturesofstructuresthatwillbestimplementtheirstrategies.Mixed-formorganizationsarecalledHybridStructures.AHybridStructuremixesfunctional,geographic,andproductunits.HybridStructuresFeworganizatOrganizationalStructures

toImplement

MultinationalStrategiesWhenacompanyfirstgoesinternational(asapassiveexporter),itseldomchangesitsstructure.Eventhoughexporting,itpreferstorelyonEMCsandETCsratherthanchangeorganizationalstructure.Similarly,alicensingstrategyhaslittleimpactondomesticstructure.However,wheninternationalsalesbecomemorecentral,thestructureneedstobechanged.OrganizationalStructures

toTheExportDepartmentTheExportDepartmentcoordinatesandcontrolsacompany’sexportoperations.TheExportdepartment:IscreatedwhenexportsbecomesignificantDealswithinternationalsalesofallproductsSalesrepresentativesinothercountriesmayreporttotheExportDepartmentmanager.TheExportDepartmentTheExporExhibit8.4:

AFunctionalStructurewithanExportDepartmentExhibit8.4:

AFunctionalStrForeignSubsidiaries(1of3)Foreign