GMS 520 Chapter Notes - Chapter 8: Market Saturation, Emerging Markets
Document Summary
Emerging market companies need to redefine their family-based governance and rigid control systems. Org. design needs to take size, environment and appropriate technology into consideration. Internationalization: process by which a firm gradually changes in response to international competition, domestic market saturation, and the desire for expansion, new markets, and diversification. Globalization: strategy that treats the world as one market by using a standardized approach to products and markets. Organizing for globalization involves rationalization and developing strategic alliances (need close coordination to standardize operations) Structural evolution (stopford"s stages model): managers redesign org. structure to optimize strategy (changes relationships, authority, lines of communication, geographic dispersal of units, etc). The needs for globalization and localization are two major variables in choosing a structure! Includes domestic structure plus export dept, domestic structure plus foreign subsidiary, international division. Involve opposing forces of integration and differentiation, can be left with exposed to enviro. volatility.