The company then evolv to a matrix organization with executives reporting to a country manager and a global business unit head and has recently return to a straight ahead global business unit reporting structure. There are never ending tradeoffs tween creating global efficiencies through a more centraliz structure and establishing a local environment that allows for innovation and flexibility Collis says.
These are the cycles and choices
That companies go through. The answers to these four questions Collis says flow out of an understanding of a firm s international advantage. We talk about competitive advantage…in other words how do you add value over and above individual businesses In determining Myanmar Email List your firm s global advantage the question is simply what advantage you seek to create or exploit by virtue of ing an international player. For example if it s easy for an organization to sell an identical product all over the world Collis cites Boeing and Intel then scale economies have the potential to an obvious global advantage. Down To Cases The book s case examples and detail decision making maps offer a practical guide to some of the complex issues that emerge from doing business across borders.
If a manager is trying to decide
Where to build a new manufacturing plant the quick and easy decision would to choose the current low cost location—but since that can change within India Email List a relatively short time span as it did with China it s also important to factor in longer term country competitiveness and how the plant fits into an existing portfolio of locations. factors that can affect location and observes how companies typically assign each a weight percentage employee availability sourcing quality and cost percent infrastructure availability percent a country s security receptivity and judicial environment percent cluster factors and so on.
