National Institute of Technology 2009-1st Sem M.B.A International Business IV Sem - - Question Paper

But CEO TKM soon changed lanes to join Hindustan Machine Tools, a public sector giant, as an accounts officer, a highly respected position. 3 years later he moved again this time to Hyderabad Allwyn in Hyderabad, where he got his 1st feel of an automobile project, the Allwyn Nissan light commercial vehicle. He was then the deputy finance manager, in charge of project financing.

The offer of a finance manager’s position saw CEO TKM return to his native place in 1986. 7 years later he became vive president (Finance) and looked at new business developments and projects. The next turning point in his life came when he was offered the post of CEO at Mysore Kirloskar, a path that eventually led to TKM.


Q: six (B) Write notes on: (a) International division structure. (b) Worldwide functional structure.

Ans:

(a) International division structure.

In the International division structure, the overseas unit is an adjunct to the parent company. It handles all the International activities, which may be organized by function, product or geographic area. All of the overseas subsidiaries are under the authority of the International division head (usually vice president), who coordinates the overseas activities. The international division allows the MNC to concentrate resources and create specialized programs and activities targeted on International operations, while simultaneously keeping such activities are under 1 head, control and communication are easy. The structure can also respond quickly to the modifications in the International business environment. Use of this structure has drawbacks too. The structure separates the domestic and international managers, which can outcome in 2 various camps with divergent objectives. As overseas operations expand and diversify, this design fails to cope with the new demands. Finally, most research and development efforts are domestically oriented, or ideas for new products and process in the International market are provided low priority. beneath figure illustrates the International division structure.


Grouping every international business activity into its own division put internationally specialized personal together to handle such diverse matters as export documentation foreign exchange transactions and relations with foreign govts. This strategy prevents duplication of these activities in more than 1 place in the organization. It also creates a critical mass that is large enough to enable personnel with in the division to wield power with in the organization so that they can push for international expansion.

Earning:   Approval pending.