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How Should The Company Manage and Organize Its International Activities

A company moves through three stages of international organization as its activities expand: 1. Through an Export Division for simple exporting 2. An International Division to manage multiple international markets and ventures, headed by a president over functional specialists and operating units 3. A Global Organization to address complexities from various international influences over products, markets, and countries.

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0% found this document useful (0 votes)
64 views13 pages

How Should The Company Manage and Organize Its International Activities

A company moves through three stages of international organization as its activities expand: 1. Through an Export Division for simple exporting 2. An International Division to manage multiple international markets and ventures, headed by a president over functional specialists and operating units 3. A Global Organization to address complexities from various international influences over products, markets, and countries.

Uploaded by

SudarshanKumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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1. Through Export Division
• A firm normally gets into international market by
simply shipping out its goods.

• If its international sales expand, it organizes an export


department consisting of a sales manager and a few
assistants.
If the firm moves into joint ventures or direct
investment, the export department will no
longer be adequate to manage international
operations
2. International Division
Companies that engage in several international markets
and ventures create an international division to handle all
this activity.

This unit is headed by a division president who sets goals


and budgets and is responsible for company’s
international growth.
The international division’s corporate staffs consists of
functional specialists who provide services to various
operating units. Operating units can be geographical
organizations.
Or the operating units may be world product groups, each
with an international vice president responsible for world
wide sales of each product group.

Finally, units may be international subsidiaries, each


headed by a president who reports to the president of the
international division.
3. Global Organization
However, these companies face several organizational
complexities viz.

1.) How much influence should the headquarter product


manager have?

2.) And the company’s market manager for the banking


sector?

3.) And the company’s country manager?


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