The Organization of International Business Ch 14 D300

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  1. Organizational Architecture
    • the totality of a firms organization:
    • organizational structure
    • control systems
    • processes
    • organizational culture
    • people
  2. Control systems
    are the metrics used to measure the performance of subunits and make judgement about how well managers are running those subunits
  3. Advantages of Centralization (four main)
    • 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
  4. Advantages of decentralization (5 thing)
    • 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
  5. Strategy and Centralization
    • 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
  6. Global matrix structure 420
    horizontal differentiation proceeds along two dimensions: Product division and geographic area
  7. Strategy and coordination
    the need for coordination is lowest in localization strategy and highest in transnational companies.
  8. Knowledge network
    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
  9. Relationships among strategy
    • Stra              Interdep     PA         CofC
    • Localization      L                L             L
    • International    M                M            M
    • Global              H                H            H
    • Transnationl     VH              VH          VH
  10. Organizational Culture
    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
  11. Strategy and Architecture 435
    435 437
  12. Organizational inertia 438
    • 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.
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The Organization of International Business Ch 14 D300
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