Unit 6: Discussion 2 Week 6 MBA695

Unit 6: Overview - Global Markets

Introduction

It is important for managers to recognize two opposing challenges. These include (1) being proactive in taking advantage of new opportunities (looking outward), and (2) ensuring the effective coordination and integration of existing operations (looking inward).  Those challenges suggest the need for flexible organizations. Successful organizations are both efficient in how they manage existing assets and competencies as well as taking advantage of opportunities in rapidly changing and unpredictable environments.

Organizational structures need to be designed to handle both internal processes and external parties such as suppliers, customers, and alliance partners. The challenge for managers is to create systems that both maintain order and provide flexibility.  There are different types of organizational structures with varying control systems.

Corporate governance can be defined as the relationship between the various participants in determining the direction and performance of the corporation. The primary participants include shareholders, management (led by the chief executive officer), and the boards of directors.

Successful organizations must ensure that they have the proper type of organizational structure. Furthermore, they must ensure that their firm incorporates the necessary integrating and processes so that the internal and external boundaries of the firm are flexible and permeable. Such a need is increasingly important, as the environments of firms become more complex, rapidly changing, and unpredictable.

Organizations also need to follow strategies to develop cultures and incentives that reward information and resource sharing as well as support the goals of the corporation.