1. Organizational Design and Control
Chapter 18

2. Organizational Structure
What is it?
What does it demonstrate?
Organizational Design
Considerations
Two concerns
Departmentalize and take advantage of efficiencies
Coordinate activities
Four primary dimensions

3. Evolution of International Company
International Business

4. Evolution of International Company
Global Corporate Form- Products

5. Evolution of International Company
Global Corporate Forms- Geographic Regions

6. Evolution of International Company
Global Corporate Forms- Functional

7. Evolution of International Company
Hybrid Organization
Examples
Matrix Organization
Problems
Matrix overlay
Strategic Business Units
Changes in Organizational Forms

8. Current Organizational Trends
Virtual Corporation
Outsourcing
Modular
Advantages
Disadvantages
Horizontal
Benefits
Corporate Survival in the 21st Century
Dynamic network structure

9. Control What is it? Subsidiaries v. Affiliates
Where are Decisions Made?
Product and equipment
Competence of subsidiary management and HQ reliance on it
Size and age of the international corporation
Benefiting the enterprise to detriment of subsidiary
Subsidiary frustration

10. Where is Decision Made? Product and Equipment
Standardize?
Competence of Subsidiary Management and HQ Reliance on It
Moving executives around
Understanding host country conditions
How far away is host country?
Size and Age of the International Corporation
Established
Smaller/newer

11. Where is Decision Made?
Benefiting the Enterprise to Detriment of Subsidiary
Subsidiary detriment
Moving production factors
Which subsidiary gets the order?
Multicountry production
Whose books profit?
Subsidiary Frustration
Managers

12. Other Control Issues Joint Ventures and Subsidiaries less than 100%
Lack of freedom and flexibility
Control can be had
Four methods
Reporting
Financial
Technological
Market opportunities
Political and economic
De-jobbing
Definition
Hierarchy implodes
Traits
Overall Control Issues