Organizing for Worldwide Effectiveness: The Transnational Solution Harvard Case Solution & Analysis

To be competitive in an increasingly complex international environment, companies with international operations must achieve global coordination and flexibility of national time. Traditional organizational forms, however, typically provide one or the other attribute. The authors illustrate this point through the experience of the two main competitors in the market of consumer electronics: Philips, a classic "multinational" company, a decentralized federation structure is well suited to the promotion of national flexibility and Matsushita, ¬ęglobal" companies with a centralized hub configuration, which ensures high efficiency. The authors then describe the new models - the "transnational" organization, the structure of which is based on an integrated network of worldwide operations. Multinational firms requires both good corporate governance, which do not prevent the national flexibility and efficiency of governance, which does not prevent global coordination. "Hide
by Christopher A. Bartlett, Sumantra Ghoshal Source: California Management Review 21 pages. Publication Date: 01 Oct 1988. Prod. #: CMR019-PDF-ENG

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