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Organizational Design Strategy in Changin Globe

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Information about Organizational Design Strategy in Changin Globe

Published on December 25, 2007

Author: ebakaa

Source: slideshare.net

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You can download this presentation from ebaka.blogspot.com
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Organizational Design and Strategy in a Changing Global Environment Presenter : Eba (eba_mn@hotmail.com) Asia University , Taichung city, Taiwan

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. Winston Churchill

Section 1 Organizational Design & Stratey

Key words Organization, Business Organization Organization’s Core Competences Strategy-Organization Strategy Domain-Core Domain Functional and Organizational Resources Organizational Design, Structure Low-Cost Strategy and Differentiation Strategy Changing Globe or Globalization

Organization, Business Organization

Organization’s Core Competences

Strategy-Organization Strategy

Domain-Core Domain

Functional and Organizational Resources

Organizational Design, Structure

Low-Cost Strategy and Differentiation Strategy

Changing Globe or Globalization

What is Business Organization? + VALUE + VALUE

Core competences Difference of added value input+ VALUE = output input+ value = output

What is strategy ? What is Organization’s Strategy ? … Market strategy…. Military Strategy…. Country’s Strategy…

The High class Car market The Leader Company of High class Car Market Core Competition Core Competition decision1 decision1 Organization Strategy is a process Mercedes Benz Company Competitor XXX Company

Organizational resources Organizational resources Functional resources Skills of top management team The vision of its founders, CEO Scarce resources/Land ,capital, equipment/ Company’s brand name & Corporate reputation Skills of organization’s functional personnel Coordination abilities Mercedes Benz Company

Skills of top management team

The vision of its founders, CEO

Scarce resources/Land ,capital, equipment/

Company’s brand name & Corporate reputation

Skills of organization’s functional personnel

Organizational Domain and Core Domain Which domain can WE do business ?

Organizational Domain and Core Domain OK…Car industry, specially the highest class car

Organizational Structure and Culture follow organizational strategy Organization Structure Mechanistic Structure Centralized Decision making Low differentiation Low integration Organic Structure Decentralized Decision making High differentiation High integration 1 p – 230 USD Business Organization Low-Cost Strategy Differentiation Strategy

Mechanistic Structure

Centralized Decision

making

Low differentiation

Low integration

Organic Structure

Decentralized Decision

making

High differentiation

High integration

Four Level of Organization strategy Global Strategy Corporate-Level Strategy Business-Level Strategy Functional-Level Strategy

Four Level of Organization strategy Functional-Level Strategy Responsible: Managers of Depts Lower-Cost OR differentiate product Manufacturing Sales R & D Mechanistic structure Organic structure Manufacturing Sales R & D Tall organization Flat organization Manufacturing Sales R & D Centralized decision making Decentralized decision making Manufacturing Sales R & D Standardization Mutual adjustment

Responsible: Managers of Depts

Lower-Cost OR differentiate product

Four Level of Organization strategy Business-Level Strategy Responsible: Top Management Team Choose Domain, Core Domain Develop Core Competences Lower-Cost OR differentiate product

Responsible: Top Management Team

Choose Domain, Core Domain

Develop Core Competences

Lower-Cost OR differentiate product

Four Level of Organization strategy Corporate-Level Strategy Responsible: Top Management Team, Board of Director, CEO Develop Core Competences Protect and Enlarge its existing Domain Expand into NEW DOMAINS Lower-Cost OR differentiate product

Responsible: Top Management Team,

Board of Director, CEO

Develop Core Competences

Protect and Enlarge its existing Domain

Expand into NEW DOMAINS

Lower-Cost OR differentiate product

Corporate-Level Strategies For Entering New Domain Input Domain (Iron industry, Tire industry) Unrelated Domain (Bank, Travel company…etc) Output Domain (Repair service, Car insurance) Related Domain (Cheapest car industry, Motorcycle) Mercedes Benz Company (High class car industry)

Four Level of Organization strategy Global Strategy Responsible: Top Management Team, Board of Director, International branches, CEO Develop Core Competences in international market Manage that different product across different countries Find to low cost area and countries

Responsible: Top Management Team,

Board of Director, International

branches, CEO

Develop Core Competences

in international market

Manage that different product across

different countries

Find to low cost area and countries

Global Matrix Structure Canadian Division Automobile product group Chemicals product group Consumer goods product group North American Area United States Division Mexican Division European Area British Division French Division Pacific Area Japanese Division T aiwan Division

Section 2 Globalization

Question : What is the definition of Globalization ? Answer : Princess Diana’s Death? Question : How come? (Why?)

Answer : An English Princess with an Egyptian boyfriend crashes in French tunnel, Driving a German car with Dutch engine,

Driving a Belgian who was drunk Scottish whisky, followed closely by Italian Paparazzi on Japanese motorcycle,

treated by an American doctor Using Brazilian medicines. This story is presented to you by Mongolian Using Bill Gate’s technology

And you are reading this on my computer (projector) that uses Taiwanese chips and a Korean display, assembled by Bangladesh workers

In a China plant transported by Malaysian ships to Taiwan. That is simple definition of Globalization .

Outsourcing In sourcing Fabless

In sourcing Company Outsourcing Company Fabless Company Organization in the Globalization Nike Co.,LTD “ XXX” TEXTAIL COMPANY Order: 1,000,000 sports shoes Products: 1,000,000 sports shoes

THANK YOU

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