How do firms use organization design?

The global organization Design
Structure would make it easier to transfer knowledge and tecnology between international markets.

International division
Area knowledge : Managers must understand the cultural , commercial , social... in each host country market in which the firm  does the business

Product Knowledge : Comprehend  such factors  as tecnologcal trend, customer needs, competitive force...
Exam: Know about how work the production, etc..

Functional Knowledge: Have access to co-workers with expertise in basic business functions such as production, marketing, finance...

1. Allocate  Resources
   Make departments and prepare the business.
   Every departments need to have one goal and focus.
 
2. Assign Tasks
    In international business one person or department can' t do it everything.

3. Provide information
   All the organization need to know all the information about the business

4. Obtain Information
   Know about if the business is doing well ( financial information)
   Know about the competition.

Common Form of Global Organization Design
The international organization can have some problems for design the organization:

• Product design

The global production design assigns worldwide responsibility for specific products or product group to separate operating divisions within firm.

Work best when the firm  has diverse product line. If this products are related is called an M- Form (multidivisional" the various divisions of the firm are usually self contained operations with interrelated activities") or unrelated  is called H-Form.(holding company " the various unrelated business function with autonomy") This have some several potential competitive advantages.
1. Focuses on a single product
2. Gain expertise in all aspects of the product
3. Product design facilities efficiencies in production because managers are free to manufacture the product
4. Quickly and flexibly to technology: New technologies are easy to incorporate. 

All this areas in international business (global Product Design) have some advantages and disadvantages:
Advantages                                    Disadvantages
Management                                  Coordination and competition              
Efficient Production                       Duplication of efforts
Global marketing                           Corporate learning 

• Area Design

Your company can have a policentric or multidomestic corporate philosophy.

• Functional Design

To create departments or divisions that have worldwide  responsibility for the common organization functions- finance , operations, marketing, R&D, and human resources management. (U-Form, where the U stands for "unity")

• Customer Design

Server different customer or customers groups, each with specific  needs calling for special expertise or attention.

• Global Matrix Design

Is the result of superimposing one form of organization design on top of an existing, different form. The resulting design is usually quite fluid. This Can form specific product group comprising members from existing functional departments.
Advantage                                    Disadvantage
Bring together the functional        Political Organization
Develop new products                  Difficult to communicate with other department

• Hydrid Global Design

Is described in this section represents an ideal or pure type.
Create a hybrid design that best suits their purposes as dictated in part by the firm : size, technology, environment and culture.

1. Little formal Power group with limited rules.

            Review the rules every year (min)

         2. Substantial authority

In addition to the fundamental issues of organition design we have addressed , MNCs also face a number of other related organizational issues that must be carefully managed.
Your business must make a particularly critical decision that determinates the level of autonomy, power, and control it wants to grand its subsidiaries.

The decentralize, decision making by allowing individual subsidiaries great discretion over strategy , finance...thereby letting those decisions be made by managers closest to the market.  In the other hand Subsidiary business organization needs rather than on the firm's overall needs.

How to work with subsidiary boards of directors?
Descentralization ------> Local Business and Politics --->
                                     Ethical and social Respons.---> Level of accountability
How to hired and find the right people for work with you in international business?
1. Critical thinking 
Look for someone who can help you to find better solutions.
2. Young people or people with experience.
Have some young people is helpful for bring new ideas and motivation to the business. Also that person can start with full energy . In the other hand maybe you will need a good motivation plan for them.
3. People with contactas and who know the area
4. Capacity to understand other cultures