From the course: Leading Global Expansion
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Four models for global organizations
From the course: Leading Global Expansion
Four models for global organizations
- Whether a company operates in five countries or 50, corporate leaders must decide how best to organize various functional activities, such as research and development, manufacturing, marketing, sales, after sales services, and so forth. Without the right organization, the company may fail to realize potential economies of scale or fail to adopt to local market conditions as necessary. For each functional activity, the main question pertains to whether or not the activity should be concentrated in one location, or dispersed across several locations and if so, how many and where? A related question is about how tightly to coordinate these activities which are dispersed across multiple locations. The right answer almost always varies across different functional activities. Often, it also varies across industries. For every functional activity, corporate leaders must choose one of four models. The first option is complete centralization in one location. As an example, take the…
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