Exam 11: Mne Organization Structure and Design

Once an organization has been divided to separate divisions and units, each subunit becomes subject to its own interests, goals, and environmental demands, which will often lead the unit to develop and pursue its own strategies rather than implement those of the firm as a whole.

MNEs operate in what kind of environment?

This type of strategy is one where the subsidiary performs most activities of the value chain independently of headquarters, selling most of its output in the local market.

The organization design decision can be summarized as a choice between differentiation and integration.

When referring to structure, MNE management has considerable leeway in design choices and continuously monitors the appropriateness of the structure as its operations evolve and the business environment changes.

The main advantages of ________________ structures are a global vision and the ability to leverage resources across regions.

In subunits with lead roles, the head office ensures that strategies fit MNEs overall goals and priorities.

_______________ refers to the coordination of activities across countries in an attempt to build efficient operational networks and take maximum advantage of internalized synergies and similarities across locations.

_____________designs are unique in that they contain simultaneous, intersecting differentiation bases, with many employees reporting to two or more supervisors simultaneously.

Large MNEs maintain only a few forms of differentiation.

Among organizational characteristics, the level of global integration is likely to be high if the firm seeks acquisition of local firms' knowledge and experience.

Local responsiveness concerns the attempt to respond to specific needs within each host country.

A transnational strategy is one that seeks to achieve both global efficiency and local responsiveness.

Since organization design is a vehicle for strategy formulation and implementation, MNE strategy is the key input in devising its structure.

In the global product design, product managers report to their counterparting divisions, which allows for the integration of development, production, and marketing.

The three basic types of product structure include

The main advantages of product-based structures are a global vision and the ability to leverage resources across regions.

Global matrix structures are

__________ needs stem from diversity of market conditions and social and political environments in the various countries in which the firm operates.

The matrix design structure has become quite popular in businesses today.