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Exhibit 7.11: Product Links in the Same Organization

Exhibit 7.11: Product Links in the Same Organization

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Components of the

Transnational-Network

Structure

•• Dispersed

Dispersed subunits:

subunits: subsidiaries

subsidiaries located

located anywhere

anywhere

where

where they

they can

can most

most benefit

benefit the

the company

company

•• Specialized

Specialized operations:

operations: subunits

subunits specializing

specializing inin

particular

particular product,

product, research

research areas,

areas, or

or marketing

marketing areas

areas

•• Interdependent

Interdependent relationships:

relationships: continuous

continuous sharing

sharing ofof

information

information and

and resources

resources by

by dispersed

dispersed and

and

specialized

specialized subunits

subunits



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Metanational Structure

•• Large

Large entrepreneurial

entrepreneurial multinational

multinational

•• Can

Can tap

tap into

into pockets

pockets ofof innovation,

innovation, technology,

technology, and

and

markets

markets located

located around

around the

the world

world

•• Develops

Develops extensive

extensive systems

systems toto encourage

encourage

organizational

organizational learning

learning and

and entrepreneurial

entrepreneurial activities

activities



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Metanational Characteristics

••

••

••

••



Nonstandard

Nonstandard business

business formulas

formulas for

for any

any local

local activity

activity

Looking

Looking toto emerging

emerging markets

markets as

as sources

sources ofof knowledge

knowledge

and

and ideas

ideas

Creating

Creating aa culture

culture supporting

supporting global

global learning

learning

Extensive

Extensive use

use ofof strategic

strategic alliances

alliances toto gain

gain knowledge

knowledge

for

for varied

varied sources

sources



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Characteristics of

Metanationals

High

High levels

levels ofof trust

trust between

between partners

partners toto encourage

encourage

knowledge

knowledge sharing

sharing

•• Centerless

Centerless organization

organization that

that moves

moves strategic

strategic functions

functions

away

away from

from headquarters

headquarters toto major

major markets

markets

•• Decentralization

Decentralization ofof decision

decision making

making toto managers

managers who

who

serve

serve key

key customers

customers and

and strategic

strategic partners

partners



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Multinational Strategy and

Structure: An Overview

•• Most

Most companies

companies support

support early

early internationalization

internationalization

efforts

efforts with

with export

export department

department

•• Depending

Depending on

on globalization

globalization strategy,

strategy, they

they evolve

evolve into

into

product

product or

or geographic

geographic structure

structure

•• Pressure

Pressure for

for local

local adaptation

adaptation and

and global

global efficiencies

efficiencies

result

result into

into matrix

matrix or

or transnational-network

transnational-network

•• No

No company

company reaches

reaches any

any pure

pure form—use

form—use hybrids

hybrids

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 7.12: Multinational

Strategy, Structure, and

Evolution



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Control Systems

•• Control

Control system:

system: helps

helps link

link the

the organization

organization vertically,

vertically,

up

up and

and down

down the

the organizational

organizational hierarchy

hierarchy

•• Basic

Basic functions

functions ofof control

control system

system

•• Measure

Measure or

or monitor

monitor the

the performances

performances ofof subunits

subunits

•• Provide

Provide feedback

feedback toto subunit

subunit managers

managers regarding

regarding the

the

effectiveness

effectiveness ofof their

their units

units



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 7.11: Product Links in the Same Organization

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