Seminar. The Organization of International Business Chapter Kasım 14 Salı 15-

Transcription

1 Seminar The Organization of International Business Chapter 15

2 Learning Objectives p Profile the evolving process of organizing a company for international business p Describe the features of classical structures p Describe the features of neoclassical structures p Discuss the systems used to coordinate and control international activities p Profile the role and characteristics of organization culture

3 Introduction Learning Objective 1: Profile the evolving process of organizing a company for international business

4 Introduction p The goal of MNEs is to standardize activities to maximize global efficiency and at the same time adapt activities to maximize local effectiveness p To achieve this goal the MNE must establish the right structure to implement it

5 Introduction Factors Affecting Organizing Operations

6 Changing Situations, Changing Organizations p Environmental trends, industry conditions, and market opportunities are forcing change n Expansion of international business n The Internet as a design standard n Managerial standards n Social contracts n Building a magical organization

7 Organization Structure Learning Objective 2: Describe the features of classical structures

8 Organization Structure p Organizational structure n the formal arrangement of roles, responsibilities, and relationships in the MNE n Vertical differentiation p the balance between the centralization and decentralization of authority n Horizontal differentiation p involves specifying which people do which jobs in which units

9 Vertical Differentiation p Centralization versus Decentralization n Centralization p degree to which high-level managers make strategic decisions and delegate them to lower levels for implementation n Decentralization p degree to which lower-level managers make and implement strategic decisions

10 Horizontal Differentiation p Horizontal differentiation n Specifies the set of tasks to accomplish n Divides the tasks among SBUs, divisions, departments, committees, teams, jobs, and individuals n Stipulates superior and subordinate relationships p Classical structures used to achieve this n functional, area or divisional, matrix or mixed

11 Functional Structure p The functional structure n groups people based on common expertise and resources n is popular among companies with narrow product lines

12 Functional Structure The Functional Structure

13 Divisional Structure p The divisional structure n divides employees based on the product, customer segment, or geographical location n duplicates functions and resources across divisions p International division p Global product structure p Worldwide area structure

14 Divisional Structure The International Division Structure

15 Divisional Structure Product Division Structure

16 Divisional Structure Geographic (area) Division Structure

17 Matrix Structure p The matrix structure n Institutes overlaps among functional and divisional forms n Gives functional, product, and geographic groups a common focus n Violates the unity of command principle p has dual reporting relationships rather than a single line of command

18 Matrix Structure Matrix Division Structure

19 Mixed Structure p The mixed structure n Combines elements of the functional, area, and product structures n Allows the firm to better adapt to market conditions worldwide

20 Neoclassical Structures Learning Objective 3: Describe the features of neoclassical structures

21 Neoclassical Structures p Neoclassical structures n emphasize coordination and cultivation not command and control n Network structure p arranges differentiated elements in patterned flows of activity that allocate people and resources to problems and projects in a decentralized manner keiretsu, sogo shosha, chaebol n Virtual organization p dynamic arrangement among partners that efficiently adapts to market change

22 Neoclassical Structures A Simplified Network Structure

23 Coordinated Systems Learning Objective 4: Discuss the systems used to coordinate and control international activities

24 Coordinated Systems p Coordination by n Standardization p relies on objectives and schedules to set rules and regulations n Plan p requires interdependent units to meet common deadlines and objectives n Mutual adjustment p depends on managers interacting extensively with their counterparts

25 p Control systems Control Systems n define how managers compare performance to plans, identify differences, and where found, assess the basis for the gap and impose corrections p Bureaucratic control p Market control p Clan control

26 Control Mechanisms p Control tools include n Reports n Visits to subsidiaries n Evaluative metrics n Information systems

27 Organization Culture Learning Objective 5: Profile the role and characteristics of organization culture

28 Organization Culture p Organization culture n the coherent set of assumptions about an MNE and its goals and practices shared by its members p management values and principles p work climate and atmosphere p how we do things around here patterns p traditions p ethical standards

29 Organization Culture and Strategy p An organization s culture n shapes its strategic moves n varies with the strategy the MNE pursues

30 Organization Culture and Strategy Strategy and Organizational Culture in International Business

31 The Rise of Corporate Universities p Corporate universities n Expanding mission n Integrating diversity n Crucible of change n Filling gaps

32 Activities p Handouts

33 Chapter 16 Marketing Globally

34 Learning Objectives p p p p p p p To understand a variety of international product policies and their appropriate circumstances To be aware of product alterations when deciding between standardized and differentiated marketing programs among countries To appreciate the pricing complexities when selling in foreign markets To be familiar with country differences that may necessitate alterations in promotional practices To comprehend the different branding strategies companies may employ internationally To discern effective practices and complications of international distribution To perceive why and how emphasis within the marketing mix may vary among countries

35 Introduction p Marketing principles in foreign markets are similar to those in domestic markets n Product n Price n Promotion n Place p However, some or all elements may need to be adapted to better fit local markets

36 Introduction Marketing as a Means of Pursuing an International Strategy

37 Marketing Strategies p Marketing strategy depends on marketing orientation n Production n Sales n Customer n Strategic marketing n Social marketing

38 Marketing Strategies p Firms can segment and target markets n By country n By global segment n Using multiple criteria

39 Product Policies Learning Objective 1: To understand a variety of international product policies and their appropriate circumstances

40 Product Policies Learning Objective 2: To be aware of product alterations when deciding between standardized and differentiated marketing programs among countries

41 Why Firms Alter Products p Firms alter products for n Legal reasons n Cultural reasons n Economic reasons

42 The Product Line: Extent and Mix p Product line decisions depend on n Sales and cost considerations n Product life cycle considerations

43 Pricing Strategies Learning Objective 3: To appreciate the pricing complexities when selling in foreign markets

44 Pricing Strategies p Potential obstacles in international pricing n Government intervention p Set minimum or maximum pricing p Prohibit certain pricing practices n Market diversity p Consumers may be willing to pay higher prices

45 p Pricing tactics Pricing Strategies n Skimming strategy n Penetration strategy n Cost-plus strategy p Export price escalation p Fluctuations in currency value

46 Pricing Strategies Why Cost-Plus Pricing Pushes Up Prices

47 Pricing Strategies p Gray market or product diversion n the selling and handling of goods through unofficial distributors

48 Pricing Strategies Negotiating Import-Export Prices

49 Promotion Strategies Learning Objective 4: To be familiar with country differences that may necessitate alterations in promotional practices

50 Promotion Strategies p Promotion n the presentation of messages intended to help sell a product or service p Push-pull mix n Push p uses direct selling techniques n Pull p relies on mass media

51 Promotion Strategies p Advantages of standardized advertising n lower cost n better quality at local level n common global image n rapid entry into multiple countries p However, firms could have problems with n translation n legalities n market needs

52 Branding Strategies Learning Objective 5: To comprehend the different branding strategies companies may employ internationally

53 p Brand Branding Strategies n an identifying mark for a product or service

54 Branding Strategies p Advantages of a worldwide brand n global image n global player identification p Problems with global brands n language n brand acquisition n country-of-origin n generic and near-generic names

55 Distribution Strategies Learning Objective 6: To discern effective practices and complications of international distribution

56 Distribution Strategies p Distribution n the course physical path or legal title that goods take between production and consumption

57 Distribution Strategies p Deciding whether to standardize n Distribution can vary substantially among countries n Distribution can be difficult to change

58 Distribution Strategies p When choosing distributors and channels firms must consider n whether internal handling is feasible n which distributors are qualified n the reliability of after-sales service

59 Distribution Strategies p Distributors choose which products to handle p To get a distributor to work for them, companies may have to n give incentives n use successful products as bait for new ones n convince distributors that their product and company are viable

60 Distribution Strategies p Factors that can contribute to distribution cost differences among countries include n Infrastructure conditions n The number of levels in the distribution system n Retail inefficiencies n Size and operating hour restrictions n Inventory stock-outs

61 Distribution Strategies p E-commerce and the Internet n Opportunities p can replace traditional sales methods p faster customer service n Problems p cannot differentiate sales programs between countries p still must comply with local laws

62 Managing the Marketing Mix Learning Objective 7: To perceive why and how emphasis within the marketing mix may vary among countries

63 Managing the Marketing Mix p Gap analysis n a method for estimating a company s potential sales by identifying prospective customers it is not serving adequately p Usage p Product line p Distribution p Competitive

64 Managing the Marketing Mix Gap Analysis

65 Evolving Challenges to Segment Markets p Disparities between haves and havenots will increase p Companies will have conflicting opportunities to serve both haves and have-nots p Attitudinal differences will continue to affect demand p Materialism, cosmopolitanism, and consumer ethnocentrism

66 activities p handouts