Course: Managing The Global Corporation
Prof: Akel Kayrouz
Organization Structure And Control System
Adopting the appropriate organization structures to effective strategy implementation is very important to the company’s development.
Companies change their structures to align with new strategic directions and competition and also to respond to development in their operating environment,like Samsung for example who has been badly hit by the global economic downturn so it has to make changes to effectively respond to the global recession,evidently the company startegy has had to change from high-tech competion to controlling cash flow and profitability.
Samsung announced a major restructuring consolidating business operations into two operating divisions ,one focused on consumer products(televisions,cellphones..) and the other on components(memory chips,displays..),this required rassigning two-thirds of its executives and relocating 1200 staff.
Organizational structures must change to adapt a firm’s evolving internationalization in response to world wide competition,and they must fit the strategy,international managers should find the best way to attain that fit in organizing the company’s systems and tasks.
The choice of an effective structure is affected by many factors such as the firm’s size,the appropriate technology,the organizational environment,the geographic dispersion,differences in time ,language,cultural attitudes,and business practices…
* Evolution And Change In MNC Organizational Structures
Internationalization is the process by wich a firm gradually changes in response to international competition,a firm reoganizes as it internationalizes to accommodate new strategies,
The structure continues to change over time with growth,increasing levels of investment or diversity and the types of strategy chosen,this structural evolution that accompanies internationalization is known as... [continues]
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