Globalization & Globalization & Organizational StructureOrganizational Structure

Entering the Global MarketEntering the Global Market

Why Go Global?Why Go Global? Economies of scaleEconomies of scale Economies of scopeEconomies of scope Cheaper production costsCheaper production costs

Entering the Global MarketEntering the Global Market

Stages of DevelopmentStages of Development Domestic stageDomestic stage International stageInternational stage Multinational stageMultinational stage Global stageGlobal stage

Entering the Global MarketEntering the Global Market

How to Go Global?How to Go Global? LicensingLicensing Joint ventureJoint venture ConsortiaConsortia

Virtual organizationVirtual organization

Globalization StrategiesGlobalization Strategies

Globalization StrategyGlobalization Strategy Coca-ColaCoca-Cola

Multidomestic StrategyMultidomestic Strategy Proctor & GambleProctor & Gamble

International DivisionInternational Division

Global Product Division Global Product Division StructureStructure

Global Geographic Division Global Geographic Division StructureStructure

Global Matrix StructureGlobal Matrix Structure

Global CapabilitiesGlobal Capabilities

ChallengesChallenges Complexity and differentiationComplexity and differentiation Need for integrationNeed for integration Knowledge transferKnowledge transfer

How to CoordinateHow to Coordinate Global teamsGlobal teams Headquarters planningHeadquarters planning Expanded coordination rolesExpanded coordination roles

Cultural DifferencesCultural Differences

Power DistancePower Distance Uncertainty AvoidanceUncertainty Avoidance

Three National ApproachesThree National Approaches

Centralized CoordinationCentralized Coordination JapanJapan

Decentralized ApproachDecentralized Approach EuropeEurope

FormalizationFormalization United StatesUnited States

Transnational ModelTransnational Model

What is it?What is it?

Four CharacteristicsFour Characteristics