Midterm Study Guide

* organizational design - Organizational design involves the arrangement of work tasks based on the interaction of people, technology, and the tasks to be performed in the context of the mission, goals, and strategic plan of the organization. HRM activities such as human resources planning, job and work analysis, organizational restructuring, job design, team building, * international business - all business transactions that involve two or more countries. P.5 * multinational company - more than 2 countries. the market-based, cost-based, and strategic motives a firm has to expand internationally. After this, we studied how global companies exploit economies of scale, economies of scope, and national differences to achieve their three generic objectives: (1) efficiency in current operations, (2) managing risks, and (3) innovation, learning, and adaptation. We concluded by introducing the nature and complexity of the international environment of international companies. (University 20) * economies of scope - is based on the notion that savings and cost reductions will accrue when two or more products can share the same asset, such as a production plant, distribution channel, brand name, or staff services (legal, public relations, etc.). A global company like Coca-Cola enjoys a competitive advantage because it is in a position to produce two or more products in one plant rather than two separate plants, market its products through common distribution channels, and share its world-famous brand name across a wide range of products. (University 16) * economies of scale - lower costs and higher quality resulting from specialization by designating one plant to serve as the sole producer of a component for use in the final assembly of a product. For example, a plant in the Philippines may make transmissions, another in Malaysia the steering mechanisms, and one in Thailand the engines. Each country would then do the final assembly of the complete