Skip to main content
Business LibreTexts

10: Globalizing the Management Model

  • Page ID
    23514
    • Anonymous
    • LibreTexts
    \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)

    Previous chapters focused on the challenges associated with globalizing the first three components of the business model framework—the value proposition, market choices, and the value-chain infrastructure. This chapter looks at globalizing the fourth component—the company’s management model—which summarizes its choices about a suitable global organizational structure and decision-making framework.

    The judicious globalization of a company’s management model is critical to unlocking the potential for global competitive advantage. But globalizing a company’s management model can be ruinous if conditions are not right or the process for doing so is flawed. So key questions include when, and to what extent, should a company globalize its decision-making processes and its organizational and control structure; what are some of the key implementation challenges; and how does a company get started?

    This chapter is organized in two parts. The first discusses a key “soft” dimension of globalizing a company’s management model—creating and embedding a global mind-set—a prerequisite for global success. The second part deals with the “hard” dimensions of creating a global architecture: choosing a suitable organizational structure and streamlining global decision-making processes.


    This page titled 10: Globalizing the Management Model is shared under a CC BY-NC-SA 3.0 license and was authored, remixed, and/or curated by Anonymous via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.