1. An organization must be designed to facilitate the implementation of strategic goals. Other variables to consider when designing an organization's structure include environmental conditions, the size of the organization, and the appropriate
technology. The geographic dispersion of operations as well as differences in time, language, and culture affect structure in the international context.
2. The design of a firm's structure reflects its international entry strategy and tends to change over time with growth and increasing levels of investment, diversity, or both.
3. Global trends are exerting increasing pressure on MNCs to achieve economies of scale through globalization. This involves rationalization and the coordination of strategic alliances.
4. MNCs can be regarded as interorganizational networks of their own dispersed operations and other strategic alliances. Such relational networks may adopt unique structures for their particular environment, while also requiring centralized coordination.
5. The transnational structure allows a company to “be global and act local” by using networks of decentralized units with horizontal communication; this allows local flexibility while achieving global integration.
6. Indications of the need for structural changes include inefficiency, conflicts among units, poor communication, and overlapping responsibilities,
7. Coordinating and monitoring systems are necessary to regulate organizational activities so that actual performance conforms to expected organizational standards and goals. MNCs use a variety of direct and indirect controls.
8. Financial monitoring and evaluation of foreign affiliates is complicated by variables such as exchange rates, levels of inflation, transfer prices, and accounting standards.
9. The design of appropriate monitoring systems must take into account local constraints, management practices and expectations, uncertain information systems, - and variables in the evaluation process.
10. Two major problems in reporting for subsidiaries must be considered: (1. inadequate management information systems and (2. the noncom par across countries of the performance data needed for evaluation purposes.
11. Labor relations refer to the process through which managers and workers determine their workplace relationships. The labor relations environment, system, and processes vary around the world and affect how the international manager must plan strategy and organize work and control systems.
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