HOW SHOULD A COMPANY MANAGE ITS INTERNATIONAL ACTIVITIES?

GLOBAL STRATEGY

EXPORT DEPARTMENT

GLOBAL ORGANIZATION

INTERNATIONAL DIVISION

GLOBAL STRATEGY TO MANAGE INTERNATIONAL OPERATIONS

1) EXPORT DEPARTMENT

Consists of Sales Manager and few Sales assistants.

This isn’t adequate when the company moves into Joint Ventures or Direct Investment

International Division

Geographical Organizations

World Product Groups

International subsidiaries

2) INTERNATIONAL DIVISION (IT CAN HAVE DIFFERENT KINDS OF OPERATIONAL GROUPS)

COUNTRY MANAGERS

REGIONAL VICE-PRESIDENTS (MIDDLE EAST, AFRICA, EUROPE ETC.)

DIVISION PRESIDENT

GEOGRAPHICAL ORGANIZATIONS

WORLD PRODUCT GROUP

President

Vice Presidents (responsible for

worldwide sales of each product group)

Corporate Staff Area specialist (Expertise on geographical

areas)

INTERNATIONAL SUBSIDIARIES

SUBSIDIARY PRESIDENTS Reports to DIVISION PRESIDENT

3) GLOBAL ORGANIZATIONS

In Global Organizations top corporate management and staff plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems.

The global operating units report directly to the chief executive or executive committee, not to thehead of an international division.

STRATEGIES BASED ON FORCES OF GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS

GLOBAL INTEGRATION > LOCAL RESPONSIVENESS (GLOBAL STRATEGY)

LOCAL RESPONSIVENESS > GLOBAL INTEGRATION(PORTFOLIO OF NATIONAL OPPORTUNITIES)

LOCAL RESPONSIVENESS = GLOBAL INTEGRATION(GLOCAL STRATEGY)

THANK YOU

Created by Akash Yadav, IIT Kharagpur, during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com