GLOBAL ORGANIZATION DESIGN
GLOBAL ORGANIZATION DESIGN
ENTERING THE GLOBAL ARENA
Motivations for Global Expansion :• Economies of scale• Economies of scope• Low-cost production
factors
Go Global or No ???
STAGES OF INTERNATIONAL DEVELOPMENT
I.Domestic
II.International
III.Multination
al
IV.Global
StrategicOrientation
Domestically oriented
Export-oriented, multidomestic
Multinational
Global
Stage of Development
Initial foreign involvement
Competitive positioning
Explosion Global
StructureDomestic structure plus export department
Domestic structure plus international division
Worldwide geographic, product
Matrix, trans-national
MarketPotential
Moderate, mostly domestic
Large, multidomestic
Very large, multinational
Whole world
GLOBAL EXPANSION THROUGH INTERNATIONAL STRATEGIC ALLIANCES
• Licensing• Joint ventures• Consortia
DESIGNING STRUCTURE TO FIT GLOBAL STRATEGY
Model for Global Versus Local Opportunities
Globalization strategyThe product design, manufacturing, and marketing strategy are standardized throughout the world.
Multidomestic strategyCompetition in each country is handled independently of competition in other countries.
MATCHING ORGANIZATIONAL STRUCTURE TO INTERNATIONAL ADVANTAGE
When Forces for Global Integration
are . . .
And Forces for National
Responsiveness
are . . .Strategy Structure
Low Low Export International Division
High Low Globalization Global Product Structure
Low High Multidomestic Global Geographic Structure
High High Globalization and
Multidomestic
Global Matrix Structure
BUILDING GLOBAL CAPABILITIES
THE GLOBAL ORGANIZATIONAL CHALLENGE
Complexity andDifferentiation
Need forIntegration
Transfer ofKnowledge andInnovation
• Create a structure to operate in numerous countries that differ in some aspects
Learning international experiences by sharing knowledge and innovation across the enterprises
Lack of trust Language barriers, cultural dismilarities, geographic
distances Protect interest rather than cooperate with others Knowledge and innovation as power and want to hold it The “not-invented-here” syndrome Much knowledge is in the minds, can’t easily be written
down and shared with others
Global Teams Transnational teams simultaneous contributions by:
• Help to address the challenge• Achieve global efficiencies, organizational• Learning, knowledge transfer, and adaptation
on global level Headquarters Planning Take an active role in planning, scheduling, and controling Expanded Coordination Roles
CULTURAL DIFFERENCES IN COORDINATION AND CONTROL
• National Value System- Influence management and organizations- Two dimensions : Power distances
Uncertainty avoidance
• Three National Approaches to Coordination and Control- Centralized Coordination in Japanese Company- European Firm’s Decentralized Approach- The Unites States : Coordination and Control Trough
Formalization
THE TRANSNATIONAL MODEL OF ORGANIZATION
Transnational Model ?
Definisi :•Jenis yang paling maju dari organisasi Internasional•Beroperasi melintasi berbagai produk, pasar dan budaya.•Organisasi kompleks, mengintegrasikan bagian-bagian yang bervariasi.•Terdiri dari PI dan AP, tersebar di banyak negara.
Tahapan Pengembangan Perusahaan Transnational :
Pola Hubungan dan Strategi Bisnis MNC
PI
AP AP
AP
AP
Karakteristik :1.PI menyediakan tim ahli manajemen yg memiliki keterampilan menembus pasar global2.AP memanfaatkan tim ahli untuk mengadaptasi produk, proses dan strategi pasar3.Arus informasi mengalir 2 arah4.SI bersifat Interorganisasi , menghubungkan proses dan database PI terhadap AP
INTERNATIONAL
Pola Hubungan dan Strategi Bisnis MNC
PI
AP AP
AP
AP
Karakteristik :1.AP diberikan kebebasan memenuhi kebutuhan konsumsen di wilayahnya sendiri2.AP dibebaskan untuk mengembangkan produk dan praktek bisnis3.Arus informasi berasal dari AP ke PI dalam bentuk laporan keuangan4.SI bersifat desentralisasi dengan proses dan database berdiri sendiri di masing-masing AP
MULTINASIONAL
Pola Hubungan dan Strategi Bisnis MNC
PI
AP AP
AP
AP
Karakteristik :1.PI menyediakan produk standart untuk memenuhi kebutuhan konsumen2.PI sebagai produk sentral untuk disebarkan ke seluruh AP3.Arus informasi berasal dari PI ke AP dalam bentuk laporan keuangan4.SI bersifat sentralisasi dengan proses dan database yang berlokasi di PI
GLOBAL
Pola Hubungan dan Strategi Bisnis MNC
PI
AP-1
Karakteristik :1.Asset dan sumber daya tersebar diseluruh dunai, hubungan interdependen2.Struktur Fleksibel dan selalu berubah3.AP melakukan strategi dan inovasi utk menjadi strategi perusahaan secara keseluruhan4.Unifikasi dan koordinasi dicapai melalui corporate culture, shared vision & value, management style. Not formal structure & system.5.PI dan AP bekerja bersama memformulasi-kan strategi6.Arus informasi menggunakan standar skala internasional7.Menempatkan SI dalam tanggung jawab penuh utk mengelola database demi keseragaman rancangan di seluruh jaringan
TRANSNASIONAL
AP-1
AP-1
AP-1
Transnational Organization Network
The Network Structure of N.V. Philips