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International Management Chapter 9
n/a
6
Business
Undergraduate 4
01/30/2012

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Term
global area structure
Definition
A method for coordinating international operations by using area (or geography as the dominant organizational dimension.
Term
global product structure
Definition
a method of organizing international operations on the different product divisions the company produces.
Term
heterarchy
Definition
a structure of an organization where the decision making is dispersed throughout the organization and not concentrated at the top levels. Also, lateral managerial relationships exist as complements to the vertical relationships, and firm-level activities are coordinated across multiple dimensions including product, function, and geography.
Term
international division
Definition
this organizational structure occurs when a company is first expanding internationally. The international responsibilities are placed in a division of the company, generally under one senior leader.
Term
matrix structure
Definition
a method for international organization in which the company isn't organized by one dimension, but is organized by many. "The foreign subsidiaries report simoultaneously to more than one divisional headquarters; worldwide product divisions share with area divisions responsibility for the profits of the foreign subsidiaries."
Term
transnational structure
Definition
this is a structure which adopts an internal entrepreneurial process where managers are accountable for the results of their divisions. This leads to in-country managers having specific goals and the flexibility to reach those goals in the way they consider most beneficial. This is similar to a heterarchy.
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