International Business

  1. 2 basic organizatioanla structures
    • 1. A route and lucus of decision making and coordination
    • 2. a system for reporting communications
  2. Stages of organization
    • Step one little or no formal organization
    • step two international division
    • Step three The Global Organizaiotn
  3. Step one of organization- Little or no formal organization
    domestic operation assume responsibity for the nternational operations
  4. Step 2 of organization- the international division
    it centralizes all the responsibilities for global activities, the aim is to eliminate possible bias against global operations
  5. Step three of organization- the global organization
    global strucutres have grown out od competitive necessity
  6. 6 types of global structures
    • production structure-
    • 2. Global area structure
    • 3. Global functional structure
    • 4.Global Customer structure
    • 5. Mixed or hybrid
    • 6. Matrix Stucture
  7. Global Product Stucture
    an organization structure in which product divisions are responsible for all global activity
  8. Global area structure
    An organizational structure in which geographic divisions are responsible for global activity
  9. Global Functional Structure
    an organization structure in which departments are formed on the bias of functional area such as production, Marketing, and finance easist
  10. Global Customer structure
    An organizational structure in which divisions are formed on the basis of customer groups
  11. Matrix Structure
    Most complicated an organiztional strucutre that uses functional a divisional structures simotainiously
  12. Locus of desicion making
    • 1. Decentralization
    • 2. Centralization
    • 3. coordinated decntralization
  13. Decentralization (Locus of desicion making)
    the granting of a high degree of autonomy to subsidaries
  14. Centralization ( Locus of desicion making)
    the concentrating of control and strategic decision making at headquarters
  15. Coordinated decentralization (Locus of desicion making)
    The provision of an overall corporate strategy by headquaters, while granting subsudaries the freedom to implement their own corporate strategies within established ranges
  16. Four factors of decsion making
    • 1. the degree of involvement in international operations
    • 2. the products the firm markets
    • 3. the size and importance of the firm's markets
    • 4. the human resources capibility of the firm
  17. Types of controls
    • 1. output control
    • 2. Behavior control
  18. Output control
    Organizational controls such as balance sheets, sales data, production data, product line growth, and preformance reviews of personnel.
  19. Behavioral controls
    organizational controls that involve influenceing how activities are conducted
  20. factors for selecting global managers for overseas assignments
    • 1. competence factors
    • 2. Adaptability factors
    • 3. Personal characteristics
    • 4. adaptability screening anf orientation
  21. Compensation for overseas assignment
    • Base Salary
    • Cost of living allowance
    • Foreign service premium
    • Hardship allowance
    • Housing allowance
    • Tax-equalization plan
    • education allowance
  22. Base salary
    salary not includeing specail payments such as allowances paid during overseas assignments
  23. cost of living allowance
    an allowance paid during the assignment over seas to enable the employee to maintain the same standard of living as at home
  24. Foreign service premium
    a financial incentive yo accept the assignment overseas, usually paid as a percentage of the base salary
  25. Hardship allowance
    an allowance paid to an area that requires major adaptation
  26. Housing Allowance
    an allowance paid during an overseas assignment to provide apporiate living quarters
  27. Tax equalization plan
    Reimbursement by the company when an employee in an overseas assignment pay taxes at a higher rate than at home
  28. Education allowance
    reimbursment by a company for a dependants educational expensese
Card Set
International Business