Mib im class 2

• 1. Post-Class Activity Why organizational issues for born-global firmsdiffer from those for traditional multinationalcompanies. Give examples of how technology can be utilizedto support internal global communicationssystems. Discuss the conflicts that can arise betweeninternational headquarters and nationalsubsidiaries. Global account management. Transnational network structure.

2. Internationalization and the SmallBusiness Two models - Small business stage model: process of following incremental stages of internationalization - Global start-up or Born-global firm: company that begins as a multinational company 3. Born-Global Firms Key elements favoring global start-ups - Dispersed human resources - International sources of venture capital - The existence of a global demand - The lack of a geographically protected market - The necessity of worldwide sales to support the venture - The potential to avoid later resistance tointernationalization 4. Traditional Internationalization and Born-Global Firms 5. Understanding Global Account Management Global Account Management(GAM) is the naturalextension of national account management The worldwide operations of global customers are treatedas one integrated account Consistent pricing, product specifications and service 6. Why MNC customers prefer GAM Centralized purchasing leads to more transparent price Consolidation of orders means Volume discounts Ability to manage product specifications and servicemore effectively 7. When is GAM appropriate? From a suppliers perspective, GAM is appropriate if : Products and services need global coordination and are profitable enough to justify it MNC customers want GAM These customers are important to the business Competitive advantage can be gained from GAM 8. Products and services Prime candidates are complex products and services likeprocess controls, specialty chemicals and corporatebanking High margin products Globally consistent or compatible Must meet complex specs across borders 9. Customers wants Customers may expect Suppliers to provide a single point of contact Coordinated resources for serving them Globally uniform / consistent prices/ discount schemes Globally standardised products and services Globally consistent service quality/ performance 10. Which customers are candidates for GAM? Good size and revenue potential Geographic spread Integration capabilities Existence of appropriate structure, processes andinformation systems Integration capabilities are high if Strategies are developed at the global level Most businesses have global P&L Country heads focus on servicing the activities of globalbusiness lines, functions and customers Global teams manage or coordinate most primaryactivities Information is captured and shared globally in real time A truly global culture permeates the organization 11. Transnational Network Structure The transnational network structure represents the newestsolution to the complex demands of being locallyresponsive while taking advantage of global economies ofscale and seeking location advantages such as globalsources of knowledge It combines functional, product, and geographic subunits However, unlike the symmetrical matrix structure, thetransnational has no basic form Instead, the transnational is a network that links differenttypes of transnational subsidiaries throughout the world 12. Transnational Network Structures Transnational network structures A multinational structural arrangement that combines elements of function, product, and geographic designs, while relying on a network arrangement to link worldwide subsidiaries At the center of the transnational network structure are nodes,which are units charged with coordinating product, functional,and geographic information Different product line units and geographical area units havedifferent structures depending on what is best for theirparticular operations 13. Transnational Corporation Involves linking foreign operations to each other and toheadquarters in a flexible way Leverages local and central capabilities Not a matter of boxes on an organizational chart; it is anetwork of company units and a system of horizontalcommunication Requires the dispersal of responsibility and decisionmaking to local subsidiaries Effectiveness is dependant on the ability and willingness toshare current and new learning and technology across thenetwork 14. Transnational Network Structures Dispersed subunits Subsidiaries that are located anywhere in the worldwhere they can benefit the organization Specialized operations Activities carried out by subunits that focus on aparticular product line, research area, or market area Designed to tap specialized expertise or other resourcesin the companys worldwide subsidiaries Interdependent relationships Share information and resources throughout the dispersed and specialized subunits 15. Transnational Network Structures 16. Choice of Organizational Form 17. E-com company