The globalization of business has ended corporate colonialism in
international commerce, and out of this has emerged what the author
calls the global corporation. Differing in many important ways from
the now obsolete multinational corporation it is replacing, the
global corporation is actually a network of independent
entrepreneurs, liberated from the control of headquarters, and thus
able to implement a new vision of the overall enterprise, its
competitive strategies, and how it coordinates and communicates
within itself. The author carefully delineates the subtle
distinctions among concepts that are often taken, mistakenly, as
synonyms for globalization, such as multinationalization, and
elicits the implications these distinctions have for the management
of international business.
Nurtured in the post-GATT era, and especially in the last twenty
years, the model of the global corporation describes an
international business organization in which the parent company
treats each national market as a part of a single, integrated
regional or global market, setting up autonomous divisions or
forming alliances and partnerships to handle each product and
business line for the entire region or entire world market. In this
network organization, the parent company plays the role of support
office for the individual divisions, which are treated as equals.
The structure consists of the support level, which handles
company-wide concerns, and unit level, which handles unit-specific
concerns. The two-level management is supported and re-enforced by
a corporate vision and by efficient and effective communication and
incentive structures.
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