International organization modes: IBM, Xerox and Kodak.
Global organization model: Sony
Transnational organization mode: Caterpillar Company of the United States
: 1. international organization mode: using existing capabilities to expand into the international market.
Applicable conditions: This model is suitable for global integration and local reaction pressure is relatively low.
Operating characteristics: the parent company develops its existing core competence and transfers technology and knowledge to its subsidiaries.
Disadvantages: subsidiaries cannot be given maximum freedom to adapt to local conditions, and low cost cannot be achieved through economies of scale.
2. Multinational organization mode: set up subsidiaries in many countries to operate as independent business units.
Applicable conditions: when the global integration pressure is low and the local reaction pressure is high.
Operating characteristics: Although the parent company also exercises ultimate control, it gives its subsidiaries great autonomy. Each subsidiary is an independent unit with all the functions needed to operate in the local market.
Disadvantages: the manufacturing cost is high, and repeated work is easy to disperse the strategic decision-making power, so it is difficult to launch a coordinated global attack on competitors.
3. Global organization mode: regard the world as a single market, and the company headquarters operates in a unified way.
Applicable conditions: This model is suitable for the situation that the global integration pressure is high and the local reaction pressure is low.
Operating characteristics: the parent company makes centralized decisions and strictly controls most overseas businesses. Usually it is produced in the place with lower cost and the best technology, and the standardized products are sold to the global market.
Disadvantages: These companies regard the world as a single market and believe that there is no substantial difference in the tastes and preferences of consumers in different countries.
4. Transnational organization mode: the establishment of specialized chemical plants meets the requirements of local response, and global integration is realized by creating a coordination mechanism.
Applicable conditions: This model is suitable for global integration and local reaction pressure.
Operational characteristics: concentrate some functions in the most cost-saving places and hand over other functions to subsidiaries. Some functions, especially research, are often concentrated in the country. Other functions are also centralized, but not necessarily in China.