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Chapter Outline
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The Organization of International Business

Opening Case
Nestlé

Introduction

Organizational Architecture

Organizational Structure
Vertical Differentiation: Centralization and Decentralization
Management Focus
The International Division at Wal-Mart
Horizontal Differentiation: The Design of Structure
Management Focus
The Rise and Fall of Dow Chemical's Matrix Structure
Integrating Mechanisms
Control Systems and Incentives
Types of Control Systems
Incentive Systems
Control Systems, Incentives, and Strategy in the International Business
Processes
Organizational Culture
Creating and Maintaining Organizational Culture
Organizational Culture and Performance in the International Business
Synthesis: Strategy and Architecture
Localization Strategy
International Strategy
Global Standardization Strategy
Transnational Strategy
Environment, Strategy, Architecture, and Performance
Organizational Change
Organizational Inertia
Implementing Organizational Change
Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
A Decade of Organizational Change at Unilever





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