“The fundamental purpose of any business firm is to make a profit” (Hill, 2002, p. 379). Especially for multinational companies it is difficult to operate due to the distance, dynamic and diversity. To reach this aim and to compete effectively in an international environment a multinational enterprise has to pursue an appropriate strategy.
In the following, factors that determine the strategy a company pursues will be regarded. In addition, different strategies will be explained as well as different structures for implementing those strategies. Moreover, two companies will be compared regarding their strategies and structures.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Organisational Strategies
- 2.1. Determinants of Control Strategies
- 2.1.1. Internal Environment
- 2.1.2. External Environment
- 2.1.2.1. PEST Analysis
- 2.1.2.2. Porter's Five Forces
- 2.2. Locus of decision making
- 2.3. Control strategies
- 2.3.1. International Strategy
- 2.3.2. Global Strategy
- 2.3.3. Multidomestic Strategy
- 2.3.4. Transnational Strategy
- 3. Organisational Structures and Mechanisms
- 3.1. Organisational Structures
- 3.2. Integrating Mechanisms
- 3.3. Control Mechanism
- 4. Synthesis
- 5. Cases
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to analyze the determinants of control strategies and organizational structures within multinational enterprises (MNEs). It explores how internal and external environmental factors influence the strategic choices of MNEs and examines various control strategies and organizational structures employed to achieve competitive advantage in the international marketplace.
- Determinants of control strategies in MNEs
- Influence of internal and external environments on strategic choices
- Different control strategies (international, global, multidomestic, transnational)
- Various organizational structures for implementing strategies
- Comparative analysis of company strategies and structures
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter establishes the fundamental objective of business firms – profit maximization. It highlights the unique challenges faced by multinational companies due to distance, dynamism, and diversity in the international environment. The chapter sets the stage for examining the factors that determine a company's strategic choices, including the explanation of different strategies and structures, and a comparative analysis of companies based on their respective approaches.
2. Organisational Strategies: This chapter delves into the crucial link between a multinational enterprise's chosen strategy and its environment. It underscores the necessity of considering various determinants when selecting an appropriate strategy. The chapter lays the groundwork for a detailed examination of these determinants, which are explored in subsequent sub-chapters.
2.1. Determinants of Control Strategies: This section focuses on the internal and external factors influencing control strategies. The internal environment is assessed through a SWOT analysis, focusing on strengths and weaknesses, using examples to illustrate how internal factors (e.g., skilled workforce, high labor costs) impact strategic decisions. The external environment is examined through PEST and Porter's Five Forces analyses, setting the stage for a more thorough exploration of external factors influencing control strategies within MNEs.
3. Organisational Structures and Mechanisms: This chapter discusses the organizational structures and mechanisms used by MNEs to implement their chosen strategies. It examines various structures, including international division, functional division, global product division, global area structure, and global matrix structure, exploring their implications for control and coordination across geographically dispersed operations. The chapter also touches upon integrating and control mechanisms to ensure efficient functioning of these structures.
4. Synthesis: This chapter (based on the provided outline) will likely integrate the key findings from the previous chapters, providing a cohesive summary of the relationships between control strategies, organizational structures, and environmental factors. It would connect the theoretical frameworks and analysis to demonstrate a comprehensive understanding of MNE strategic management.
Schlüsselwörter (Keywords)
Multinational Enterprises (MNEs), Control Strategies, Organizational Structures, International Strategy, Global Strategy, Multidomestic Strategy, Transnational Strategy, Internal Environment, External Environment, PEST Analysis, Porter's Five Forces, SWOT Analysis, Competitive Advantage, Decision Making, Integrating Mechanisms, Control Mechanisms.
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What is the purpose of this document?
This document provides a comprehensive preview of a text analyzing the determinants of control strategies and organizational structures within multinational enterprises (MNEs). It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What topics are covered in this text?
The text explores how internal and external environmental factors influence the strategic choices of MNEs. It examines various control strategies (international, global, multidomestic, transnational) and organizational structures used to achieve competitive advantage. Key areas include PEST and Porter's Five Forces analyses, SWOT analysis, and the impact of internal factors like skilled workforce and high labor costs on strategic decisions.
What are the key themes explored in the text?
Key themes include determinants of control strategies in MNEs, the influence of internal and external environments on strategic choices, different control strategies, various organizational structures for implementing strategies, and a comparative analysis of company strategies and structures.
What is the structure of the text?
The text is structured into five chapters: an introduction, a chapter on organizational strategies (including determinants of control strategies and locus of decision making), a chapter on organizational structures and mechanisms, a synthesis chapter, and a chapter with case studies. The organizational strategies chapter further breaks down into sections examining internal and external environments using frameworks like PEST and Porter's Five Forces analyses.
What are the main organizational structures discussed?
The text discusses various organizational structures employed by MNEs, including international division, functional division, global product division, global area structure, and global matrix structure, and analyzes their implications for control and coordination.
What analytical frameworks are used in the text?
The text utilizes several analytical frameworks, including SWOT analysis (for internal environment), PEST analysis, and Porter's Five Forces (for external environment) to analyze the factors influencing the choice of control strategies and organizational structures within MNEs.
What control strategies are examined?
The text examines various control strategies including international, global, multidomestic, and transnational strategies, comparing and contrasting their applications and suitability based on different environmental factors.
What is the overall objective of the text?
The overall objective is to analyze the determinants of control strategies and organizational structures within multinational enterprises (MNEs) and how these choices contribute to achieving competitive advantage in the international marketplace.
What are some key keywords associated with this text?
Key keywords include Multinational Enterprises (MNEs), Control Strategies, Organizational Structures, International Strategy, Global Strategy, Multidomestic Strategy, Transnational Strategy, Internal Environment, External Environment, PEST Analysis, Porter's Five Forces, SWOT Analysis, Competitive Advantage, Decision Making, Integrating Mechanisms, and Control Mechanisms.
Where can I find more information about the case studies?
The provided preview only outlines the structure and does not include the detail of the case studies. Further information will be found in the complete text.
- Quote paper
- Silke Frey (Author), 2003, Determinants of Control Strategies and Organisational Structures of Multinational Enterprises, Munich, GRIN Verlag, https://www.grin.com/document/34050
