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Types of Global Organizations (Structures)
Transcript of Types of Global Organizations (Structures)
Global Business Approaches
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.
: Making products domestically and selling overseas.
: Acquiring products made abroad and selling them domestically.
: Manufacturing organizations that want to make or sell another company's products (typically manufacturing organizations).
: Using another company's name as well as operating methods (typically service organizations)
Significant Global Investments
: 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.
: 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.
Management decisions made from company's headquarters.
Decentralizes management decisions to the local country workforce.
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"
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.
values and attitudes shared by individuals from a specific country that shape the behaviors and belief about what is important.