Managing Business
1. Assuming you are a senior manager of the parent firm, below, in which cell of the integration/ responsiveness (I/R) framework would you place the corporate strategy of each of the following five MNEs:
a) IBM
b) Toyota
c) Huawei
d) Samsung Electronics
e) Google
The Integrated- Responsiveness framework is used to explore and explain the management challenges of all types of multinational enterprises (MNEs). However, it was originally developed, and has predominantly been applied, to examine and explain strategic and organizational dilemmas in product-oriented manufacturing firms. The below given diagram makes it clearer.
In the case of IBM, it is a widespread Information technology company. They need to follow a transnational strategy which falls in the third quadrant with high global integration and high responsiveness. The same should be followed by Toyota as it is a worldwide manufacturer of automobiles. Huawei and Samsung are both in into electronics and computers; even they will fall in the category of following the transnational strategy. Google is the most popular international search engine over the world. They have operations across all the continents. They also fall under the category of transnational organisation.
2. What is the appropriate organisational structure consistent with the strategy of each of the five firms in Question 1?
As discussed above, IBM, Toyota, Google, Samsung & Huawei, all fall under the transnational technique, they need to design their organisational structure appropriately. The real issue confronting associations that utilize a transnational structure is unpredictability, which is prone to meddle with their deliberations to realize integration and coordination at different levels. To address the issue of integration and coordination concerns, they might as well receive new organizational structures, for example, measured and virtual structures.
Virtual Organisation
In a measured structure, one can differentiate centre and non-centre capacities of their business and keep tabs on centre capacities while outsourcing all non-centre capacities. In virtual organizations, representatives work comprehensively from distinctive areas from divide divisions, business settings or even from their own particular homes. Virtual organizations give electronic offices to their workers for correspondence. You can set the stream of correspondence as per the way of your business with the assistance of organization structure. Organizational structure of the organization could be dependent upon authority and easy