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Chapter 15 - PowerPoint PPT Presentation

Jims
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Chapter 15

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    CHAPTER 15 COMPARATIVE STRATEGIC MANAGEMENT AND ORGANIZATION DESIGN: UNDERSTANDING COMPETITORS AND COLLABORATORS

    Slide 2:ORGANIZATIONS ALIKE:

    GLOBALIZATION AND CONVERGENCE

    Slide 3:CONVERGENCE

    The increasing similarity of management practices

    Slide 4:EXHIBIT 15.1 The Effects of Globalization on the Convergence of Strategy and Structure

    Slide 5:WHY CONVERGENCE?

    Global customers and products Growing levels of industrialization and economic development Global competition and global trade

    Slide 6:Why convergence? (continued)

    Cross-border mergers, acquisitions, and alliances Cross-national mobility of managers Internationalization of business education

    Slide 7:WHY DO MANAGEMENT PRACTICES DIFFER?

    National context - includes national culture, the countrys available labor and other natural resources

    Slide 9:COMPARATIVE STRATEGY FORMULATION: EXAMPLES FROM AROUND THE WORLD

    US model: used as basis for comparison represents the attempt of a rational decision making process

    Slide 10:THE US MODEL OF STRATEGY FORMULATION

    1-Define the business and its mission 2- Define objectives 3- Assess the company's situation: SWOT, competitors' actions 4- Craft strategy content

    Slide 11:DEFINING THE BUSINES AND ITS MISSION

    The mission statement tells the organizational members and outsiders what the company does and why it exists

    Slide 12:US MISSION STATEMENTS

    Often emphasize market issues closely related to key elements of success in their respective industries

    Slide 13:FRENCH AND BRITISH MISSION STATEMENTS

    British mission statements focus on strategic issues, emphasize shareholder returns French mission statements reflect a national context in a social democracy

    EX 15.3

    Slide 15:DEFINING OBJECTIVES

    National differences exist mostly in priorities financial or strategic

    Slide 17: EXHIBIT 15.4 FINANCIAL AND STRATEGIC OBJECTIVES OF U.S., JAPANESE, AND BRITISH SUBSIDIARIES

    Slide 18:ASSESSING THE COMPANY'S SITUATION

    Management's assessment of the situation faced by their companies US managers favor techniques such as the SWOT and competitive analyses

    Slide 19:GERMAN AND BRITISH EXAMPLES

    Successful companies from both countries identified the same key success factors Differences: the organizational characteristics that managers believe achieve the key success factors

    Slide 20:NATIONAL DIFFERENCES IN STRATEGY CONTENT: KEIRETSU

    Compete with a high ratio of products where the company can add value with knowledge Emphasize production to improve productivity Use the resources of networks

    Slide 21:COMPARATIVE ORGANIZATION DESIGN

    Multinational managers must deal with organizations from different societies Each society provides a unique national context for the design of organizations

    Slide 22:BASIC CONCEPTS IN COMPARATIVE ORGANIZATIONAL DESIGN

    Vertical differentiation Horizontal differentiation Span of control Integration Standardization

    Slide 23:Formalization Mutual adjustment

    Basic concepts in comparative organizational design, continued

    Slide 24:EXHIBIT 15.6 PREFERRED ORGANIZATIONAL HIERARCHIES

    Slide 25:CONTROL MECHANISMS

    Link the organization vertically Five broad types of control: personal output bureaucratic decision making cultural

    Slide 26:NATIONAL CULTURE AND ORGANIZATIONS

    Hofstede: power distance and uncertainty avoidance the most important influence basic problems of organizational design--differentiation and integration See Exhibit 15.7 next

    Slide 28:ADHOCRACY

    Low power distance + low uncertainty avoidance = adhocracy Fits cultures where people can tolerate ambiguity and have less need for formalized rules and regulations

    Slide 29:THE ADHOCRACY DESIGN

    Vertical and horizontal differentiation: fewer levels and wider span of control Control mechanisms: mutual adjustment Decision making: Participative or consultative

    Slide 30:PROFESSIONAL BUREAUCRACY

    Small power distance + high uncertainty avoidance norms = professional bureaucracy

    Slide 31:THE PROFESSIONAL BUREAUCRACY DESIGN

    Vertical and horizontal differentiation: moderate levels Control mechanisms: standardization of skills. Decision making: centralized decision making

    Slide 32:FULL BUREAUCRACY

    High power distance + high uncertainty avoidance = full bureaucracy Full bureaucracy is the most formalized of the Hofstede organization types

    Slide 33:FULL BUREAUCRACY DESIGN

    Vertical and horizontal differentiation: Tall pyramids and narrow spans of control Control mechanisms: Standardization and a high degree of formalized rules Decision making: Highly centralized

    Slide 34:FAMILY BUREAUCRACY

    Occurs in countries with large power distance norms and low uncertainty avoidance norms. It most parallels an extended family with a dominant patriarch or father figure.

    Slide 35:FAMILY BUREAUCRACY DESIGN

    Vertical and horizontal differentiation: small and low specialization Control and coordination mechanisms: direct contact Decision making: highly centralized See key relationships in Exhibit 15.9 next

    Slide 37:THE JAPANESE CONSENSUS BUREAUCRACY: A SPECIAL CASE?

    Should favor the full bureaucracy Unique style of group orientation = consensus bureaucracy

    Slide 38:JAPANESE CONSENSUS BUREAUCRACY DESIGN

    Vertical differentiation: little job specialization for individuals Control mechanisms: favor cultural control over bureaucratic control Decision making: consensual - see Exhibit 15.10 next

    Slide 40:SOCIAL INSTITUTIONS ANDTHE KOREAN CHAEBOL

    Slide 41:DISTINCT ORGANIZATIONAL FEATURES

    Family-dominated and multi-industry conglomerates Extensive family control Paternalistic leadership Centralized planning - reports directly to the chairman Dominated much of Korean business

    Slide 42:INSTITUTIONAL CHANGE AND THE CHAEBOL

    Coercive isomorphism - government support fostered the growth of the Korean chaebol Close relationships with banks for financing Protection by the government

    Slide 43:Institutional change and the chaebol, continued

    Recent government policies reduced support breaking networks allowed to fail

    Slide 44:CONCLUSIONS

    Understanding different approaches to strategy and organization design: helps to deal with international competitors helps a company become better collaborators facilitates local operations

    Slide 45:Conclusions, continued

    Pressures for convergence National cultural and social institutional lead to differences