Chapter 7 (Part-B) Chapter 8: Managing in Global Environment and Organizational Structure and Design скачать в хорошем качестве

Chapter 7 (Part-B) Chapter 8: Managing in Global Environment and Organizational Structure and Design

🔹 PART 1: Managing in a Global Environment 1️⃣ Why Global Management Matters Today, businesses don’t operate in isolation. Companies compete across borders. Think about: Apple Inc. – Designs in USA, manufactures in China Toyota Motor Corporation – Production across continents Amazon – Global logistics & digital reach 🌍 Globalization means: Flow of goods Flow of capital Flow of knowledge Flow of labor 2️⃣ The Global Environment – Key Dimensions Managers must understand 3 major environments: 🔹 A. Economic Environment Exchange rates Inflation GDP growth Income levels 👉 Example: A strong dollar makes exports expensive. 🔹 B. Political–Legal Environment Trade regulations Tariffs Stability Intellectual property laws 👉 Political instability = high risk. 🔹 C. Cultural Environment Culture shapes: Leadership style Negotiation behavior Employee motivation One famous framework: 🌍 Hofstede’s Cultural Dimensions Individualism vs Collectivism Power Distance Uncertainty Avoidance Masculinity vs Femininity Long-term Orientation 👉 Example: High power distance countries prefer hierarchical leadership. 3️⃣ Entry Modes into Global Markets When firms go international, they choose different strategies: Mode Risk Control Investment Exporting Low Low Low Licensing Low Medium Low Joint Venture Medium Shared Medium Wholly Owned Subsidiary High High High 🔑 Key Insight: Higher control = Higher risk. 4️⃣ Global Strategies There are 4 major international strategies: 1️⃣ International Strategy Centralized at home Export innovation 2️⃣ Multi-Domestic Strategy Local responsiveness Decentralized decision-making 3️⃣ Global Strategy Standardization Cost efficiency 4️⃣ Transnational Strategy Balance global efficiency + local responsiveness 👉 Most complex but most competitive. 5️⃣ Challenges in Global Management Cultural misunderstandings Exchange rate volatility Global supply chain disruption Political risk Ethical differences Example: Labor laws differ significantly across countries. 🔑 KEY WORDS – Chapter 7 Globalization Political Risk Hofstede Dimensions Exchange Rate Exporting Licensing Joint Venture Wholly Owned Subsidiary Global Strategy Transnational Strategy 🔹 PART 2: Organizational Structure & Design Now that firms operate globally… How should they structure themselves? 1️⃣ What is Organizational Structure? Organizational structure defines: Who reports to whom Who makes decisions How tasks are divided How coordination happens Structure affects: ✔ Efficiency ✔ Innovation ✔ Speed ✔ Accountability 2️⃣ The Six Key Elements of Organizational Structure Work Specialization Departmentalization Chain of Command Span of Control Centralization vs Decentralization Formalization 3️⃣ Types of Organizational Structures 🔹 1. Simple Structure 4 ✔ Low departmentalization ✔ Wide span of control ✔ Centralized authority ✔ Low formalization Best for: Startups Small businesses 🔹 2. Functional Structure 4 Departments based on function: Marketing Finance HR Operations ✔ Specialization ✔ Efficiency ✖ Poor cross-department communication 🔹 3. Divisional Structure 4 Divided by: Product Geography Customer Example: Procter & Gamble uses product divisions. ✔ Flexible ✔ Performance accountability ✖ Duplication of resources 🔹 4. Matrix Structure 4 Employees report to: Functional manager Project manager ✔ Efficient resource use ✔ Flexible ✖ Role conflict 4️⃣ Mechanistic vs Organic Organizations Mechanistic Organic High formalization Low formalization Centralized Decentralized Rigid hierarchy Flexible structure Stable environment Dynamic environment 👉 Tech startups = Organic 👉 Manufacturing plants = Mechanistic 5️⃣ Contingency Approach There is NO one best structure. Structure depends on: Strategy Size Technology Environment 🔑 Strategy drives structure. 🔑 KEY WORDS – Chapter 8 Organizational Structure Departmentalization Span of Control Centralization Formalization Functional Structure Divisional Structure Matrix Structure Mechanistic Organic Contingency Approach