Bahçeşehir University Social Science Institutions Ph D. Business Program Management & Organization

1. Bahçeşehir University Social Science Institutions Ph D. Business Program Management & Organization Organizational Theory Prof. Dr. Atilla DİCLE Designing Organizations for the International Environment Prep. by: İlhan ÇİFTÇİ

2. Industrial Revolution & Globalization Bahçeşehir University - Organizational Theory

3. Orientation Stages Global Orientation Multinational Orientation International Orientation Domestic Orientation Bahçeşehir University - Organizational Theory

4. Four Stages of Int’l Evolution Bahçeşehir University - Organizational Theory

5. Fortune 500 Investigation - 2006 The number of US companies was 189 in the 500 biggset company. Bahçeşehir University - Organizational Theory

6. Maps - The WorldUS & Turkey Bahçeşehir University - Organizational Theory

7. In accordance to revenue basis,Tüpraş is the biggest company in Turkey and the number of Tüpraş is 108 in an US market Fortune 500 Investigation - 2008 Bahçeşehir University - Organizational Theory

8. To Expand Int’l Market Motivators Economies of Scale • Indutrial Revolution • Innovations • Technology • ... • Diversification of Products • Increase in product quantity • Expand regions, country and market Economies of Scope • Invest raw materials with a lowest possible cost • Get opportunity to obtain scare • Obtain source of cheap labor Low Cost Production Factors Bahçeşehir University - Organizational Theory

9. Strategic Alliances Strategic Alliance is one of the way of getting involved in international trade Licensing Joint Ventures Consortia Source: .... Bahçeşehir University - Organizational Theory

10. Strategic Alliances Benefits Achieve production cost savings through economies of scale Share complementary technological strengths Distrubute new products Service through anaother country’s distrubution channels Bahçeşehir University - Organizational Theory

11. Strategic Alliances Samples JV Pharmaceutical Merck, Eli Lilly, Pfizer, Warner Lambert JV, Gold Exploration Robex Resources (Canada)Inc. & Geo Services International (Mali) Jonit Ventures, Consortias JV Banking Sector ICiCI (India) & Prudential (UK) (Asset Management) CONSROTIA Airbus  French, British,German vs Boeing (US) Source: .... Bahçeşehir University - Organizational Theory

12. Model for Global vs Local Opportunities Decision between the Globalization vesrsus a multidomestic global strategy Whether the manager want each global affiliate to act autonomously or whether activities should be standardized across countries Globalization strategy means that product design, manufacturing and marketing strategy are standardized throught the world (Coca – Cola  only the advertising and marketing need to be tailored for different regions) A multidomestic strategy menas that competition in each counrty is handled independently of competition in other countries (Dominos - - > The compnay has 2.500 int’l restaurants and offers 100 different pizza pies) Bahçeşehir University - Organizational Theory

13. Model to Fit Org. Structure to Int’l Advantages High Forces for Global Integration Low Low Forces for National Responsiveness High Bahçeşehir University - Organizational Theory

14. Int’l Divison & Domestic Division Domestic Division: Typicially Orginized along functional or product lines International Divison: Orginized according to geographical interest Has its own hierarchy to handle business (licensing, joint ventures) in various countries Selling the products and services and prodcuts created by the domestic division Openning subsidiary plants Moving the organization into more sophisticated international operations Bahçeşehir University - Organizational Theory

15. Domestic Hybrid Structure with Int’l Division CEO Human Resources Research & Development Corporate Finance Europe Sales Mideast (Sales) Electircial Product Div. Medical Product Div. Internatinal Division Scientific Product Div. Brazil (Subsidiary) Staff (Legak, Licensing) Bahçeşehir University - Organizational Theory

16. Global Product Divison Structure The Product based structure works best when a division handles products that are tecnology similar and can be standarized for marketing worldwide All Divison Manager is responsible Controlling Organizing Distrubition of product Planning Issues Successful global Division Structure Bahçeşehir University - Organizational Theory

17. Global Geographical Divison Structure • Divides the world into geographical • regions • Each geographical divison reporting • to CEO • Each Division has full control of • functional activities wtihin a geog. area • Difficult to transfer new domestic • tech. and products, (each div. • thinks what it need) Source: .... Bahçeşehir University - Organizational Theory

18. Global Matrix Structure It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions The matrix works best when pressure for decision making balances the interests of both product standarzation and geographical localization and when coordination to share resources is important Bahçeşehir University - Organizational Theory

19. Global Matrix Structure Bahçeşehir University - Organizational Theory

20. Building Global Capabilities Bahçeşehir University - Organizational Theory

21. Cultural Differences in Coordination and Control Bahçeşehir University - Organizational Theory

22. Questions and Explanations Bahçeşehir University - Organizational Theory