Global Organizational Model in Japanese Companies

Japanese companies that internationalized during the 1960s to 1980s adopted a transnational corporation model.

The global configuration model is based on decentralization of assets, resources, and responsibilities.

Local subsidiaries in global configuration models have the freedom to create new products and strategies.

The global configuration model is also described as a decentralized hub.

The transnational corporation model seeks to preserve the drawbacks of other models.

In the global configuration model, specialized resources and capabilities are concentrated in a single unit.

Multinational Corporations evolved from Global Corporations.

The terms International Corporation, Multinational Corporation, Transnational Corporation, and Global Corporation are always used interchangeably.

Bartlett and Ghoshal's descriptions of Multinational Corporations are universally accepted.

Multinational Corporations were popular during the post-war period.

Trade barriers were very low during the pre-war period.

There is a single, universally accepted definition of Multinational Corporations.

A separate export department is not equipped to handle all the activities connected with the export business.

The internal organizational structure of a separate export department is always based upon territory.

A separate marketing department tends to clash with the international and domestic sides of the firm.

A separate export department has personnel trained to perform only domestic marketing functions.

A separate export department cannot impart an export orientation to the company.

A separate export department must be located at the headquarters of the company.

The Export Department Structure depicted in the Figure is a quasi-independent company.

A separate export department can more easily develop export marketing facilities and expertise than an export sales subsidiary.

Establishing a separate export department can reduce the burden of tax.

An export sales subsidiary is not suitable for handling large exports.

The export sales subsidiary is operated independently of the parent company.

The export department and export sales subsidiary differ significantly in terms of internal organization and specific activities performed.

The global customer structure is commonly used in industries like energy and mining.

The global functional structure is based on geographic areas.

The global matrix structure is a hybrid of the global geographic and global customer structures.

The global functional structure is used when product lines are very diverse.

The global geographic structure is used in industries with diverse customer groups.

The global matrix structure seeks to eliminate the advantages of other alternative structures.