Saturday, December 10, 2011

Types of International Organizational Models

1. Decentralized Federations:

National Units had more operating independence and strategic freedoms from HQ, and were managed more as a portfolio of offshore investments rather than a single international business.

2.Coordinated federation :
HQ develops sophisticated management systems enabling it to maintain overall control, although scope is given to local management to adopt practices that recognize local market conditions

3.Centralized Hub:
The focus is on the global market rather than on local markets.HQ maintaining tight, simple controls in key strategic decisions made centrally, and subsidiaries mainly managed the flow of goods.

4.Integrated Network Model/Transnational:

The corporation develops multi-dimensional strategic capabilities directed towards competing globally but also allows local responsiveness to market requirements


The above models with examples are explained at this blog:
http://angelinajao.wordpress.com/2003/03/02/organizational-structures-of-multinational-corporations/

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