Organising international business
The structure of international organisations varies with the internal culture and the type of product/s which are to be marketed. These also vary with the stage of development of the organisation in terms of the extent of its internationalization.
They include:
• World – wide functional divisions
• World – wide product divisions
• International divisions
• Geographic regions
• Global matrix
• Networked structure
• Adapting to cultural differences – see below
MULTINATIONAL CORPORATIONS (MNCs)
Definition
Organisations engaging in international management vary in size and the extent that their business activities across national boundaries.
Alternative organizational structures:
• World – wide integration from the home country base
• National responsiveness to the host country
• Regional responsiveness to a wider market
• Multifocal emphasis – globalization
These alternatives produce different orientations towards international management (after Perlmutter)
• Ethnocentric – based on home country norms and staffing
• Polycentric – based on host country norms and staffing
• Regiocentric based on the wider, regional area
• Geocentric – not based on any particular area