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Types of Global Organizations (Structures)

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Silviana Falcon

on 26 September 2016

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Transcript of Types of Global Organizations (Structures)

Managing in a Global Environment
Multinational Corporations
Global Business Approaches
Minimal Investment
:
1) Global Outsourcing
Purchasing materials or labor from all around the world wherever the cost is less expensive. Take advantage of lower costs to achieve more competitive pricing of products.
Mid-Range Investments
Exporting
: Making products domestically and selling overseas.
Importing
: Acquiring products made abroad and selling them domestically.
Licensing
: Manufacturing organizations that want to make or sell another company's products (typically manufacturing organizations).
Franchising
: Using another company's name as well as operating methods (typically service organizations)
Significant Global Investments
Strategic Alliance
: Partnership between an organization and a foreign company partner in which they both share resources and knowledge in developing a new product or building a new production facilities.
EXAMPLE: Joint venture: One business product in mind.

Foreign Subsidiary
: Directly invest in a foreign country and setting up a separate and independent facility or office. It can be multi-domestic or global in its approach to management.
Global
Management decisions made from company's headquarters.
(Ethocentric)
Multi-Domestic
Decentralizes management decisions to the local country workforce.
(Polycentric)
Transnational / Borderless
Uses an arrangement that eliminates the concept of geographical boundaries and focuses on developing and leveraging talent.

"we are not based any place"
(Geocentric)
Managing in a Global Environment
Political / Legal Environment
The Economic Environment
Free Market: an economic system in which resources are primarily owned and controlled by the private sector.
Planned Economy: an economic system in which economic decisions are planned by a central government.
National Culture
values and attitudes shared by individuals from a specific country that shape the behaviors and belief about what is important.
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