• Teamwork is a growing trend
• Teams allow organizations to delegate authority
• Become flexible and competitive in global environment
• Organizations may use cross-functional and/or permanent team strategies
Network departmentalization
• Extending the boundaries of collaboration beyond the organization
- Subcontracting functions to other companies
- Coordinate activities
• Interconnected groups of companies
- Partnerships and collaborations
43. Direct investing means that the company is involved in managing the productive assets in a foreign country. There are three options for direct investing. Name and compare these three options.
Direct investing - an entry strategy in which a company is directly involved in managing its productive assets in a foreign country. There are three forms of direct investment:
Joint venture involves a strategic alliance or a program by two or more organizations. In joint venture a company shares costs and risks with another firm in the host country to develop new products, build a manufacturing plant, or set up distribution network. Joint venture is also called partnership
Acquisition of a foreign affiliate occurs when a company buys affiliate from another company in a foreign country. Direct acquisition of an affiliate may provide cost saving over exporting by shortening distribution channels and reducing storage and transportation costs.
Greenfield Venture occurs when a company builds a subsidiary from scratch in a foreign country.
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