國際管理CHAPTER 8答案.doc

CHAPTER 8 ORGANIZATIONAL STRUCTURE AND CONTROL SYSTEMS CHAPTER Discussion Questions 1 What variables have to be considered in designing the organizational structure for international operations How do these variables interact and which do you think are most important The firm s strategy size appropriate technology and local environment including culture are the variables to be considered Students should be able to discuss linkages between strategy and structure size and structure and culture and structure Some students will link technology to structure by noting the need for some companies to control or to limit the transfer of technology to business partners Very few students will be able to consider a comprehensive model that integrates all the variables Students will likely divide between either strategy or culture as the most important 2 Explain the need for an MNC to be global and act local How can a firm design its organization to enable this Despite the many economies of scale advantages to be obtained by global strategy companies still find it necessary to respond to local markets and customs Being global and acting local can be accommodated organizationally by the horizontal organization and the transnational organization forms 3 What is a transnational organization Since many large MNCs are moving toward this format it is likely that you could at some point be working within this structure how do you feel about that A transnational organization is an emergent structural form that provides the company with the ability to manage across national boundaries retaining local flexibility while achieving global integration This capability involves linking their foreign operations in a flexible way to each other and to headquarters thereby leveraging local and central capabilities 4 Discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries How would you feel about this variable if you were a subsidiary manager Exhibit 8 10 provides a continuum of the relative centralization of authority If you ask a student if he she prefers to have authority he she will answer yes 5 As an international manager what would make you suggest restructuring of your firm What other means of direct and indirect monitoring systems could you suggest Exhibit 8 7 offers an answer to the first part of this question These indicators of organizational malaise might function as a leading indicator of the need for some change in either structure or control processes Indirect controls include up front controls such as sales quotas budgets and other financial controls as well as feedback reports giving information about the sales and financial performance of the subsidiary for a given period of time 6 What is the role of information systems in the reporting process Discuss the statement Inadequate MIS systems in some foreign affiliates are a control problem for MNCs Since control depends upon information and information comes from managed systems of information it is the MIS which is the key to control of subsidiary divisions of a corporation END OF CHAPTER CASE ASEA BROWN BOVERI ABB SWEDEN 2004 What Went Wrong Discussion Questions 1 What are your views of ABB s position in the global infrastructure industry As discussed in the case ABB was a major global player in the infrastructure and other industrial products The merger of Asea and Brown Boveri was a perfect business strategy since both companies sold complementary products and targeted the same markets In the post merger era the company had excellent growth and carried long term prospects In the nineties the ABB Group reached to a point where it was a global force to be reckoned with Of course East Asian markets were ripe for the company s Infrastructural projects During the East Asian Crisis ABB was poised to add additional non core products to its portfolio of 1 000 entities worldwide The company s organizational structure looked solid and its worldwide operations were benchmarked in studies by academics and other companies 2 Analyze and evaluate ABB s organizational structure and its control systems during the tenures of Percy Barnevik and J rgen Dormann see Figure 1 Also draw a chart to discuss the company s strengths and weaknesses In the question students should be asked to draw a chart showing ABB s strengths and weaknesses The data can be collected from the company Web site see annual reports and online business publications In addition Figure 1 should be used to compare and contrast the company s CEOs Percy Barnevik and J rgen Dormann since both sought different organizational structures and control systems Barnevik was infatuated with global expansion while Dormann was hired to rescue ABB from its bankruptcy A good source of information on the Infrastructural industry can be obtained from Value Line Standard Poor s Industry Surveys Hoover s Company Reports and other trade publications 3 What specific strategies does ABB need to undertake in the coming years to be a key player in the industry ABB strategies can be divided into two areas In the short term the company should concentrate on seeking new projects and expand the business opportunities In the long term ABB should fix its organizational structure which seems complex and ineffective ABB should shed some of its non core operations although Dorman has implemented this strategy by selling oil and gas operations Another area which seems important is creating a new image after Barnevik s pension scandal 4 What did you learn from ABB s complex organizational structure and its global operations Regarding organizational structures and control systems ABB case is important in three areas First organizational structures are never permanent Companies need to reconfigure and redesign their glo