- Control systems are the metrics
- Measure the performance
- Make judgments about
- Operating subsidiary companies
- Formulating strategy
- While
- Allocate resources within a firm
- Evaluating the performance of managers
- Conceptually distinct
- Solicitation
- Organizational culture refers to the norms and value
- Profound impact
- As illustrated by
- Used proactively
- Internal values are consistent with
- Emphasize
- Reinforce
- Historically made an effort to hire managers who were sociable
- Placed a high value on  consensus
- Assembly
- To ensure a smooth flow
- The assembly operation
- Overburdened
- Routine issues
- Five main arguments
- First, top management can become overburdened
- Second, motivational research fa­vors decentralization
- Decentralization permits greater flexibility
- Environmental changes
- Referred up
- Hierarchy
- Presumably
- Make sure that international stores copied the format for  stores
- Naively perhaps
- Proaching $20  billion in sales
- Pivotal event
- Be tailored to conditions
- Prevailing in the local market
- Pro­curement
- Regional level
- Whereby
- Autonomous
- Operating decisions
- Human resource management
- Financial expenditures
- Financial objectives,
- Legal issues
- Disperse the various value creation activities
- Around the globe
- The globally dispersed web of value creation activities
- Facilitates a global strategy
- Creates pressures
- Creates pressures for centralizing
- Local responsiveness
- Dictates the decentralization of many  operating decisions
- Foreign subsidiaries
- Significant freedom to develop their own skills and competencies
- Foreign subsidiaries within a multinational firm
- Be leveraged to benefit other parts
- Horizontal differentiation
List: Horizontal
- Basis of function
- Predominates
- Adopted in others
- Conflicting demands
- Conflicting demands
- Reconciled
List: The
of Domestic
- Initially expand abroad
List: The
- Initially expand abroad
- Group all their international activities into an international division
- Tended to be
- Organized on the basis of functions
- Foreign subsidiaries
- Manu­factured at home
- Prove viable to manufacture the product in each country
- Replicating the functional structure
- Manage its global expansion
- Heads of foreign subsidiaries are not given as much voice
- Between domestic and foreign operations
- Inherent potential
- Relegates each country's manager
- Second tier
- Consolidation of global production
- Consolidation of global production at key locations
- Ad­opted by  diversified firms that have domestic product divisions
- Facilitates local responsiveness
List: worldwide
- Each area tends to be a self-contained
- Autonomous entity with its own set of value creation activities
- Encourages fragmentation
- Highly autonomous entities
- Difficult to realize gains associated with global standardization
- Encounter  significant  problems if local responsiveness is less critical than reducing costs
- Reducing costs or transferring core competencies
List: Worldwide product division structure
- Eadquarters retains responsibility for the overall strategic development and financial control of the firm
- Divisional structure is designed to help overcome the coordination problems that arise with the international division and worldwide area structures
- Ances the consolidation of value creation activi­ties at key  locations necessary for realizing location and experience curve economies
- Facilitates the transfer of core competencies
- Simultaneous worldwide introduction of new products
- Subservient to product division managers
- Global Matrix Structure
- Simultaneously achieve its par­ticular objectives
- Reinforces the idea of dual responsibility
- Require so many meetings that it is difficult to get any work done