- 1. Post-Class Activity Why organizational issues for
born-global firms differ from those for traditional multinational
companies. Give examples of how technology can be utilized to
support internal global communications systems. Discuss the
conflicts that can arise between international headquarters and
national subsidiaries. Global account management. Transnational
network structure.
2. Internationalization and the Small Business 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 to internationalization 4. Traditional
Internationalization and Born-Global Firms 5. Understanding Global
Account Management Global Account Management(GAM) is the natural
extension of national account management The worldwide operations
of global customers are treated as 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 service more
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 like
process controls, specialty chemicals and corporate banking 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 and information 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 global business lines, functions and
customers Global teams manage or coordinate most primary activities
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 newest
solution to the complex demands of being locally responsive while
taking advantage of global economies of scale and seeking location
advantages such as global sources of knowledge It combines
functional, product, and geographic subunits However, unlike the
symmetrical matrix structure, the transnational has no basic form
Instead, the transnational is a network that links different types
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 have different structures depending on what is best for their
particular operations 13. Transnational Corporation Involves
linking foreign operations to each other and to headquarters in a
flexible way Leverages local and central capabilities Not a matter
of boxes on an organizational chart; it is a network of company
units and a system of horizontal communication Requires the
dispersal of responsibility and decision making to local
subsidiaries Effectiveness is dependant on the ability and
willingness to share current and new learning and technology across
the network 14. Transnational Network Structures Dispersed subunits
Subsidiaries that are located anywhere in the world where they can
benefit the organization Specialized operations Activities carried
out by subunits that focus on a particular product line, research
area, or market area Designed to tap specialized expertise or other
resources in 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