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The Organization of
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Three Minute Paper
Three Minute paper:
Up to this point you have
learned many things about
various countries (Project
included much research)
Centralized Decentralized
Facilitates coordination Been shown to motivate
Ensure decisions individuals
consistent with Greater flexibility
organization’s objectives Can result in better
Gives top-level decisions
managers the ability to Can increase control
make change Duplication of effort –
Avoids duplication of higher costs
activities – lower costs
Typical Domestic Structures
Most companies start with Entrepreneur run
NO structure Small management team
Walmart
Sales
2013
$466 B
If Walmart were a Country
Worldwide 2013
Locations: 10,773
Employees: 2.2 million
If Walmart were a Country
As Competitive Pressures
Require Cost Advantage AND Matrix
Differentiation, then move to:
Match Organization to Strategy
4) General Electric has area managers who coordinate all the activities in a
given foreign country or group of counties (decentralization). What do you
think are the advantages and disadvantages of this arrangement?