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15 Cards in this Set
- Front
- Back
What are the componenets of organisational architecture?
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How is organisation architecture linked to strategy?
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To be effective, all the components of an organisation’s architecture should be consistent with one another
A firm’s organisation architecture should be aligned to its strategy A firm’s organisation strategy and architecture should be aligned to the firm’s competitive environment |
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What is the international division structure?
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Who facours international division structure, and what are the problems with it?
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Favoured by firms in the early stages of their internationalisation
-Enables a greater management focus on international operations Problems: -Lack of co-ordination between domestic and foreign operations -Lack of sensitivity of the international division to host country’s national differences |
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What is the Worldwide area structure?
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Who favours the Worldwide area structure and what is its problems?
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Favoured by firms with low degree of product diversification
Facilitates national responsiveness -Structure appropriate to a ‘multinational’ (also called ‘localisation’) strategy Problems: -Fragmentation of the organisation between areas, limiting the realisation of economies of scale, economies of location and knowledge transfer |
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What is the Worldwide production division structure?
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Who facours the Worldwide product division structure and what is its problems?
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Adopted by firms which have a reasonable degree of product diversification
Facilitates the development and implementation of integrated strategies worldwide within each product division -Structure appropriate to the ‘global’ and ‘international’ strategies Problems: -National subsidiaries may have limited power, leading to lack of national responsiveness |
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What is the Worldwide matrix structure?
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Who favours the Worldwide matrix structure, what is its problems and how has it evolved in the later years?
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Helps to cope with the conflicting demands of global integration and national responsiveness
-Structure appropriate to a ‘transnational’ strategy Problems: -Slow decision-making due to dual decision-making process -Conflicts between the product divisions and the areas -When things go wrong, product division and areas tend to reject responsibility onto each other Evolution of matrix structures in recent years -Greater emphasis on informal means of coordination -Some firms return to world product division structures whilst maintaining greater national responsiveness |
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What are Control Systems?
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Mechanisms to monitor the strategic consistency and financial performance of sub-units (e.g. headquarters controlling subsidiaries) within a firm
Types of control systems: -Personal controls -Bureaucratic controls -Output controls -Cultural controls -Organisational culture Control systems are backed by incentive systems |
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How is organisational culture created?
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Sources:
Role of leaders, societal culture, history of the firm etc. Means of creating an organisational culture -Hiring and promotional practices of firms -Reward strategies -Socialisation processes (training programs, professional networks) -Communication strategy |
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How does corporate culture relate to MNCs' strategies?
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Multinational strategy => multiple corporate cultures in the various subsidiaries
International and global strategies => corporate cultures may be strong, and will essentially be duplicating the headquarters’ ways of doing things Transnational strategies => the creation of a common corporate culture throughout the firm is given significant emphasis – creation of a cosmopolitan, opened culture -Can facilitate cooperation between the headquarters and subsidiaries, and among subsidiaries -Can support knowledge transfer within the MNC -Can help achieve goal congruence in the different parts of the firm => Difficult to create and takes a long time |
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What are the links between strategy, structure, control and integrations systems in an ideal situation?
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What is the Role of subsidiaries in a transnational strategy?
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