A multinational company that philosophy "global" that the world is actually a homogeneous market adjustment is a "global framework". For example of this philosophy, many large electronics and expertise, while small local changes to the packaging and language, essentially the same type of project products and services worldwide. However, there are some differences in terminology and philosophy in this area.
First, a"Global" philosophy is characterized by seeing the world as a market more or less monolithic with the same tastes and preferences. In today's language, this is contrary to a "multi-national (or multinational or multi-local), the philosophy that sees the world as made up of many markets-Orles unique, each with different tastes and preferences. A position between these two extremes is called regionalism, one sees the world as consisting of a small number of veryhomogeneous areas. These constructs can be used for industry, commerce, and organizational structures, and it is informative to understand how to think globally strategic sector and apply.
For example, George Yip sees globalization as a function of the degree of fragmentation in the world, local needs of the customer to distinguish local sourcing requirements, the costs are heterogeneous, and trade barriers are important for cross-border trade. SoRandall Schuler, Peter Dowling and Helen De Cieri and other scholars refer to a number of areas, including commercial aircraft, copiers, generic drugs, most electronics and computer hardware and global industries, while the sale retail, food and many services are considered substantial multi-national.
Multinationals and other large companies, moreover, generally divided into several parts, units or divisions that some aspect of their strategy. This link between structure andstrategy was made famous by the classic book Strategy and Structure by Alfred DuPont Chandler. For example, a company with five product categories are divided into five divisions, each division has a mandate to manage the categories of product. Chris Bartlett and Sumantra Ghoshal build on this logic, which focused on organizational responses to global forces and local authorities, and describes four types of organization (or attitudes) for the worldwide organization representing organizationaland strategic responses to various industrial hazards. For example, describe the global society that sees the world as its market, it is assumed that national tastes are more similar than different, and that believes in standardized products, and strategic approaches require structural mechanisms, by integrating its operations in comprehensive, coordinated the production of marketing, research and development (R & D), and planning.
Therefore, these structural processes implicitThe term structure overall. Mechanisms All large organizations that require structures to coordinate and integrate to some extent. However, the overall strategy based on these structures for implementation, there are three important aspects for this type of structure. The first is the locus of strategic responsibility. Secondly, the way in which hierarchical relationships between the structure and determine how society is divided. This aspect of the structure can be called structuring. This last aspect is the type ofcoordination and integration, these systems are called processes.
Locus of strategic responsibility: A critical aspect of organizational structure is the degree of independent decision-making is delegated from headquarters to parts of the business. The global enterprise is a strategic imperative for major strategic decisions to centralize. For example, the selection decisions, research and development, branding, and management of human resources are usually provided at the enterprise levelrather than the subsidiary level. Even the client, the function most likely be placed closer to the customer, the key policies and rules across the enterprise. Structuring: A feature of the overall structure is relatively blind to geographical distance and instead focuses on one or more strategic dimensions similar products or markets that they consider most important (besides geography) for its success on the implementation of a comprehensive strategy.
So ageneral structure is often an important high-level categorization of products (in general or of a global structure of the product), markets (Global market structure) or a matrix (global structure matrix). As an example of a structure of global product, Procter & Gamble (P & G) has three product divisions in the world, namely, Global Beauty, home care worldwide, and Global Health & Wellness. However, the distinction between product and market structures are likely to be blurred, for examplebusiness unit of Boeing look different product divisions (commercial aircraft, Integrated Defense Systems, Boeing Capital Corporation), but in reality all three are aimed at marketing of various products and services to the aerospace market groups, different, this case, the commercial airlines, authorities and financial intermediaries.
The global matrix structure attempts to organize the activities of two (or more) dimensions of the product of an administrative nature, geography and / or the market.For example, HJ Heinz has both geographical divisions in North America, Europe, Australia / New Zealand, and emerging markets (selected countries in Asia and Eastern Europe), other product categories: ketchup / condiments / sauces, meals and snacks (including frozen food), bean soups and pasta, and infant and separate activities for retail and foodservice channels. In a global structure of these various departments and divisions may be necessary aspects oflocal focus, but basically they work together to implement the overall strategy of the business.
Processes: Finally, and most importantly, the structure involves processes such as coordination, integration and information systems. These processes tend to be pronounced in the overall structure, and generally very common in contemporary organizations. Kwangsoo Kim Jong-Hun Park and identify four generic integration mechanisms: (1) those based on the integration of the mechanisms people usecoordination of operations across borders, involving the transfer of managers, meetings, workshops, committees and supplements, (2) mechanisms for information integration based using information systems such as databases, e-mail, Internet, intranet and interchanges electronic data to integrate the business across borders, (3) formalization, based on the integration of mechanisms depending on the use of common or standardized operating procedures, rules, policies and manuals unit, and (4)based on the integration of centralization of decision-making mechanisms at headquarters, a similar concept in the locus of strategic responsibility "above.
The more global society, the more that use this process. Intel, for example, uses relatively little formal structural mechanisms, but a series of cross-functional teams, including information technology (IT), knowledge management, human resources, finance, legal, change control, data warehousing, commondirectory information management and cost teams such as the integration of processes that allow them to adapt quickly to changing circumstances. integration mechanisms can also have negative effects, perhaps tying the hands of local leaders, which compliance costs (time and other resources), and the unintended creation of bureaucratic obstacles to effective decision making. A study by David Brock and Ilene Siscovick, for example, found the effects of additional factors at the level of subsidiariesoften negative.
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