BU491 Chapter Notes - Chapter 4: Competitive Advantage, Product Lifecycle, Societas Europaea
Much of mgmt. time was spent on trying to determine the best organizational structure for. Bu491 chapter 4: developing a transnational organization wide medium of different situations -> the study developed the stages model. Administrative heritage: a company"s history and its embedded management culture can be company"s greatest asset but can be a liability as it embeds attitudes that may resist change & prevent alignment. Includes communication channels, decision making processes, norms, values, management practices and responsibilities: administrative heritage is shaped by country of origin, time of expansion, industry forces, trends, and nature of leadership. Expanded abroad in a period of high international barriers. Strategy based on understanding and responding to national markets. Organization developed as a portfolio of national companies; heritage of management through personal relationships rather than formal structure. Foreign units were managed as a portfolio of offshore investments rather than a single international business.