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_SLIDE_1_
Developing Transnational Organization
Managing Integration, Responsiveness, and Flexibility
_SLIDE_2_
Beyond Structural Fit
MNE tried to find which
“Formal Structure” provided the right “Fit”
in various conditions
Management
Process
in an MNE
Choice of
a basic
Organizational
Structure
Stopford & Wells’s International Structural Stages Model
_SLIDE_3_
Stopford & Wells’s International Structural Stages Model
Adopt different organizational structures at different stages of international expansion
Research on the 187 largest U.S-based MNEs
_SLIDE_4_
For many companies,
It seems that structure followed “fashion”
more than strategy.
Limitation of International Structural Stages Model
_SLIDE_5_
Change in the 1980s,
Managers looked for ways to restructure.
The model’s solution was…(생략)
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d Federation (Multinational)
Rising tariffs, discriminatory legislation
Limited headquarters` ability
Independent operating,
Strategic freedom
_SLIDE_9_
Corporate management treats subsidiaries as foreign extensions of the domestic operations
Many assets and resources decentralized but controlled from center
Tight, formal, systems-
Based control. Knowledge
Flow: parent technology
and expertise locally adapted
Coordinated Federation (International)
Fastest international expansion
in the postwar decades
Sophisticated management system, specialist staffs
_SLIDE_10_
Corporate management
Treats subsidiaries as
Delivery pipelines to the
Global market
Tight strategic and
operational control through centralized decision making.
Goods flows : from center out
Most key assets and resources centralized
Centralized Hub (Global)
Faced altered external environment
Limited prior overseas exposure
Cost advantages, quality assurance, tight control
_SLI
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