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n Journal of Contemporary Management - The strategy and structure of international business : Ford 2000 (restructuring in a multinational global organisation)
The concept of International Business has two very distinct features: strategies and structures.
Using Ford Motor Company of Southern Africa as a case in point, this article examines the various strategic choices, influenced by cost pressures on the one hand and pressures for local responsiveness on the other. The same organisation will be used to evaluate the different market entry options and foreign direct investment. The determining effects of these strategies are very important for any organisation considering entering the international business arena.
The importance of the organisational structure is equally important to the strategic choices. It defines the organisational sub-units through what is known as horizontal differentiation, the location of decision-making responsibilities or vertical differentiation and finally the establishment of integrating mechanisms,
The article will be based on published research as well as assumptions with relevant justifications. The references to expert judgements where applicable will add value to the development of managers, preparing them to meet the challenges of International Business's strategies and structures.
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