The Different Strategies in Managing Operations Outside the Country Essay

Chapter 9 Entry StrategiesOrganizational Structures MNCs have a number of different entry strategies and organizationalarrangements that helps gain entry for operations in a different country.Many are traditional and standard approaches, while others are hybrids,mixed, or flexible arrangements that involve collaborative relationshipswhich control and oversight are shared among them. 1) Which organizational structure described in the chapter does Volkswagen's "customer-oriented" structure most closely resemble?The organizational structure described in the chapter that most closelyresemble Volkswagen's "customer-oriented" structure is a global productdivision. "A global product division is a structural arrangement in whichdomestic divisions are given worldwide responsibility for product groups"(Luthans Doh, Pg. 324). They operate as profit centers and the productsare generally in the growth stage of the product cycle, so they need to bepromoted and marketed carefully. 2) How might such a structure help or hinder entry into new markets?This type of structure can help entry into new markets by providing mostbenefits when the need for product specification or differentiation indifferent markets is high, creating divisions that specialize in eachproduct, and that it can insure that each location responds appropriatelyif a product is in a different life cycle. In ways that this structure canhinder entry into new markets is its necessity of duplicating facilitiesand staff personnel within each division, division managers may pursuecurrently attractive geographic prospects for their products and neglectother areas with benefits such as better long-term potential, and manydivision managers spend too much time trying to tap the local rather thanthe international market because it is more convenient. "For example, if aproduct is sold worldwide, a number of different divisions are responsiblefor sales" (Luthans Doh, Pg. 326). 3) Does a matrix or customer-oriented structure lend itself better to forming joint ventures and alliances?A matrix structure lend itself better to forming...

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