Management

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Priscilla Pham
3/18/2013
Extra Credit

1. What is referred to by the strategic challenge that MNCs face? (HINT see P314, it has to do with balancing 3 priorities)

* The strategic challenge that MNEs face are optimizing global efficiency, national responsiveness, and worldwide learning simultaneously. Implementing such a complex, three-pronged strategic objective would be difficult under any circumstances, but the very act of “going international” multiplies a company’s organizational complexity.

2. Define and explain the concept of administrative heritage

* The concept of administrative heritage is where an industry analysis can reveal a company’s strategic challenges and market opportunities, its ability to fulfill that promise will be greatly influenced---sometimes facilitated, sometimes constrained—by its existing internal world: its asset configuration and resource distribution, its historical definition of management responsibilities, and its ingrained organizational norm, for example. Administrative heritage can be, at the same time, one of the company’s greatest assets-- -the underlying source of its core competencies---and a significant liability, because it resists change and thereby prevents realignment. The importance of a company’s administrative heritage can be illustrated by contrasting the development of a typical European MNE whose major international expansion occurred in the decades of the 1920s and 1930s, a typical American MNE that expanded abroad in the 1950s and 1960s, and the typical Japanese company that made its main overseas thrust in the 1970s and 1980s.

3. Describe the three structure types of Decentralized Confederation, Coordinated Federation, and Centralized Hub.

* The three structure type of Decentralized Confederation, Coordinated Federation, and Centralized Hub are that decentralized confederation is where most key assets and resources decentralized, loose, personal controls, financial...
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