The Organization of International Business Ch 14 D300

• the totality of a firms organization:
• organizational structure
• control systems
• processes
• organizational culture
• people

are the metrics used to measure the performance of subunits and make judgement about how well managers are running those subunits

• Facilitates coordination and control throughout  the organization
• Ensures decisions are consistent with organizational objectives
• Gives top management the means to bring needed major organizational changes
• Avoids the duplications of the same activities within the organization

• Top management to focus on critical issues
• Motivates low level managers with authorities and freedom
• Permits greater flexibility
• Leads to better decisions by local managers
• Allows better accountability

• The choice between centralization and decentralization is not absolute
• Typically, firms centralize some activities or functions and decentralize others
• International stra and global stra- emphasize centralization more
• Localization- decentralization more
• Transnational- both decentralization and centralization

horizontal differentiation proceeds along two dimensions: Product division and geographic area

the need for coordination is lowest in localization strategy and highest in transnational companies.

is a network for transmitting information within an organization that is based not on formal organizational structure, but on informal contacts between managers within an enterprise and on distributed information systems

• Stra              Interdep     PA         CofC
• Localization      L                L             L
• International    M                M            M
• Global              H                H            H
• Transnationl     VH              VH          VH

Values and norms express them selves as the behavior patterns or style of an organization that new employees are encouraged to follow. they are not static , but it tends to change relatively slow

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• Organizations are difficult to change. Within most organizations are some strong inertia forces.
• definition- most substantive changes in an organization requires a change in structure and  extension a change in distribution of power and influence in a organization.