Preview

Organization Structure and Control System

Powerful Essays
Open Document
Open Document
2290 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Organization Structure and Control System
Name: Layal Ayoub
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 the stages

You May Also Find These Documents Helpful

  • Powerful Essays

    BUSI690 Rothaermel Ex 3

    • 1270 Words
    • 4 Pages

    The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2) functional, (3) multidivisional, and (4) matrix.…

    • 1270 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Bus 690 Unit 3 Exercise 1

    • 474 Words
    • 2 Pages

    When a company’s structure is not aligned with its strategy your organization is effected as if your automobile was not in alignment. Misalignment often causes wasted energy, unnecessary wear-and-tear on the organization and personnel, fractured resources, and higher operating costs. Richard Daft…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The structure of an organization, particularly ones operating in several countries, i.e. MNC’s is closely related to its strategies, as argued by (Qiu and Donaldson 2010,P 82). Their hypothesis suggests that small changes in the way an organization is structured may play a big role in how successful it is in reaching its goals. They effectively sort out different structural models that the organizations can base their structure on depending on a number of determinants. The key determinants being how responsive the organizations want to be in regards to the local market changes, how diversified they want their products to be between different countries and the degree to which they want a similar global rule, i.e. global integration. (Qiu and Donaldson 2010,P-98 ) An MNC with a more standardized product line globally such as Dell, Asus etc., which will have a more rigid approach with high centralization of authority cannot have the same strategy as another MNC which might be more accepting to selling diversified products and thus may be more willing to allow greater autonomy amongst their subsidiaries in other countries.…

    • 1286 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Organizational Structure

    • 1489 Words
    • 6 Pages

    Altogether, there are about eight organizational structure types. Each company has to find a way of putting these “pieces of the puzzle” into one well thought-out outline to represent the necessary relationships. In this case, we’ll be looking at the divisional structure. According to the text, “as organizations grow and become increasingly diversified, they find that functional departments have difficulty managing a wide variety of products, customers, and geographic regions. In this case, organizations may restructure to group all functions into a single division and duplicate each of the functions across all the divisions (Bateman and Snell 8th edition, 2009).”…

    • 1489 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Institutional theory is one the most renowned theoretical approaches to internationalization process of firms. From the 70s, there have been publications supporting and developing this theory by researchers such as Di Maggio, Powell, Scott, Meyer or Rowan. Nonetheless, some other alternative theories, such as OLI paradigm or TCE model, have also proven themselves quite significant. Shortell and Kalunzy (2000, p. 24) state that organizations must face certain external factors such “external or societal norms, rules, and requirements that an organization must conform to, in order to receive legitimacy and support”; which are two basic factors for a successful internationalization process. Nowadays, it is essential to determine the accuracy of internationalization theories because corporations need to respond to the challenges of a globalized world. This essay aims to examine the applicability of the main assumptions of this theory in order to explain the internationalization decisions made by firms´ managers. For that purpose, key aspects such as its scope, current importance or empirical support will be evaluated.…

    • 1703 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    They should be able to further diversify their businesses by entering into joint ventures with other firms. Moreover, the current organization structure is highly centralized, hierarchical and traditional form of organization structure. This is not suitable for the operations of a global firm and if this is altered or changed, it can provide several opportunities.…

    • 309 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    3) During the recent global financial crisis, efficiency and flexibility became particularly important to the success of multinational firms.…

    • 7702 Words
    • 37 Pages
    Satisfactory Essays
  • Better Essays

    The structure of an international organization encompasses how the power, roles and responsibilities of the international units are arranged and how information flows from one level of management to another. The structure of an international organization must be strong because it contributes to the success and implementation of the company’s strategy (http://www.businessdictionary.com/definition/organizational-structure.html). International strategy is the way in which a business makes vital decisions about developing and arranging scarce resources. “The goal of international strategy is to create a competitive advantage that is sustainable over time” (Ball, D. A., Geringer, J. M., McNett, J. M., and Minor, M. S. (2013). International business: The challenge of global competition (13th ed.) p. 249). To accomplish strategy, the company should develop competencies that add value for the customers at a price they are willing to pay and they should make sure that the competencies are rare but organized in such a way that they allow the company to fully exploit the value from the competitive potential. (Ball, D. A., Geringer, J. M., McNett, J. M., and Minor, M. S. (2013). International business: The challenge of global competition (13th ed.)p. 231). To begin to strategize, or plan globally, senior management must identify opportunities and threats from all over the world. They must be able to plan on how they will effectively resolve those issues and how they will be able to finance the implementation of the strategies. International companies must be able to attract and retain the best talent available worldwide, including both women and men…

    • 1673 Words
    • 7 Pages
    Better Essays
  • Good Essays

    the essay of MCD

    • 1590 Words
    • 6 Pages

    Title: Market Strategy and Organizational Structure: Three CompaniesJan 30th, 2009 by Scott HebertIt is no secret that organizational strategy is linked to market strategy. When a company first begins to move into the global marketplace, it must decide how it will interact with each market. The company could decide to utilize a multinational strategy. This strategy develops products and marketing specific to each national market. It benefits from the ability to quickly adapt to local trends, but it cannot take advantage of scale economies. Companies with a multinational strategy tend to develop a decentralized organizational structure. This structure pushes decision-making down to lower-level organizations. In this way, companies with multinational strategies allow their international subsidiaries to forge their own path in each market (Wild, Wild, & Han, 2008).…

    • 1590 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Internationalization is the increased significance for corporations to foster international relationships and to create alliances in efforts to provide goods and services to different parts of the world. This is all in part to globalization. The text talks about the various forces that are driving this behavior; for instance, the reduction of trade barriers through trade agreements so that more goods and services can be traded more openly, as well as they are able to enter into new markets with lower overhead costs.…

    • 1746 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Complexity and Differentiation: When the organisation enter the international arena, they encounter a greater level of internal and external complexity than anything experienced on the domestic front. Company needs to create a structure to operate in numerous countries.…

    • 1443 Words
    • 6 Pages
    Good Essays
  • Good Essays

    International Strategy

    • 1285 Words
    • 6 Pages

    Internationalization has been the most important force to reshape the competition and industry profitability in the last half-century. It still remains an appealing strategy for firms to lower cost, expand market and achieve better performance. This essay will first discuss the patterns of internationalization in general, and then move on to analyze the reasons why firms internationalize, among which the establishment of competitive advantage is crucial. More attentions will be paid to the choice of location and the part of value chain to be internationalized. Subsequent analysis will then focus on the modes of entry, reconciling global intergration and national difference.…

    • 1285 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Several studies have focused on theories of internationalization since the raid of globalization hit every aspect of our life and organization as much. The advancement of technology, the decline of trading barriers, the rise of students exchanges programs, yet the rise of low-cost airline companies, is driving the economy to become more integrated and homogeneous. This rapid process is getting marketers and business owners to think and making important decisions to whether or not going international, how, where and when to do it. The study has failed to find a general view whether an approach is better then another, however it has presented situations of firms from different size, operating in different industry and assessed the usefulness of each theory to a specific situation. In fact the paper has found that there are many factors that will influence a marketers to perceive the usefulness of each theory especially regarding on the resources and capabilities of each organization. The paper makes use of different journals articles, a small case study, and references from Hollensen book: Global Marketing (2006).…

    • 1740 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    In conclusion, we can say that it is very important to find an organizational structure that work bests for the…

    • 251 Words
    • 2 Pages
    Good Essays
  • Best Essays

    walton bd

    • 1977 Words
    • 8 Pages

    The purpose of this report is to provide an overview of the organization structure, and the goals and objectives of the chosen company and see how that structure plays a part in the formulation of strategies which aid to achieve those goals and objectives.…

    • 1977 Words
    • 8 Pages
    Best Essays