GLOBAL HUMAN RESOURCE MANAGEMENT

1. GLOBAL HUMAN RESOURCE MANAGEMENT ORGANIZATIONAL STRUCTURE AND STRATEGY

2. GLOBAL COMPETITIVE ADVANTAGE • ADAPT TO LOCAL MARKET DIFFERENCES • EXPLOIT GLOBAL ECONOMIES OF SCALE • EXPLOIT GLOBAL ECONOMIES OF SCOPE • TAP INTO THE BEST LOCATIONS FOR ACTIVITIES AND RESOURCES • MAXIMIZE KNOWLEDGE AND EXPERIENCE TRANSFER BETWEEN LOCATIONS

3. FACTORS DETERMINING MNE ORGANIZATIONAL STRUCTURE • The firm’s forms and stages of international development • The amount of cross-border coordination required by a firm’s strategy (integration versus decentralization • The nature of host governments activity in the economic process • The diversity and complexity of the MNE’s business operations

4. DEVELOPMENT FORM OF THE MULTINATIONAL • THE SUBSIDIARY OR PATTERN COULD BE A START-UP • ONCE ESTABLISHED, THE SUBSIDIARY OR ALLIANCE CAN OPERATIONALIZE THE FIRM’S INTERNATIONAL STRATEGY • WHEN THE FIRM REACHES A LEVEL OF HAVING A HIGH PROPORTION OF ASSETS/SALES EMPLOYEES OUTSIDE THE HOME COUNTRY

5. The Pre-International Division Structure Chief Executive Officer etc. Production Finance Marketing Personnel R&D Export Manager Or Export Department

6. The International Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Product A Domestic Product B Domestic Product C Domestic International Division (All Products)

7. The Global Product Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Product A Product B. Product C Product D North Asia Europe Latin America America

8. The Global Customer Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Customer A Customer B. Customer C Customer D North Asia Europe Latin America America

9. The Global Area Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Europe North Amer. Asia Latin Amer. United Kingdom Italy France Etc.

11. The International Matrix Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT Other Area and Product Divisions Europe Tractors Asia GM – Tractors Europe GM – Tractors Asia

12. STRATEGIC APPROACHES FOR INTERNATIONALIZATION

13. RANGE OF STRATEGIC ALLIANCES Joint Venture Equal Participation Co-Production Buyback R & D Consortia LEVEL OF INTERACTION Crossing Licensing Franchising Patent Licensing Cooperation Agreement COMPETITION COOPERATON

14. Approaches to Foreign Market Entry Indirect Export Wholly Owned Subsidiary Level of control over foreign activities Joint venture With local partner Franchising Licensing Export Amount of resources committed to foreign market

15. GLOBAL INTEGRATION VALUE CHAIN IMPACT

16. Upstream, Support, and Downstream Activities and Competitive Advantage Firm Infrastructure Human Resource Management Support Activities Technology Development Value What buyers are willing to pay? Procurement M a r g i n Marketing and Sales After-Sales Service Inbound Logistics Outbound Logistics Operations Primary Activities