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Title: Designing the Global Corporation by Jay R. Galbraith, Jay A. Galbraith ISBN: 0-7879-5275-3 Publisher: Jossey-Bass Pub. Date: 15 July, 2000 Format: Hardcover Volumes: 1 List Price(USD): $44.00 |
Average Customer Rating: 4.83 (6 reviews)
Rating: 4
Summary: Full of valuable insights for managers and scholars alike
Comment: Galbraith has succeeded in filling the gap that he intended to fill in that specific area of management literature where organization theory and international business research interact. Although I was initially rather skeptical of the scholarly value of the book - since it appears to be particularly aimed at practitioners - I was pleasantly surprised at the wealth of novel theoretical insights that I was able to extract from it. Although it clearly builds on Galbraith's earlier work (for which he is renowned), it definitely adds something to the field. This book will leave those interested in international business (both practice and theory!) with an enhanced understanding of some of the organizational aspects of the multinational corporation that seem to me to be relatively underresearched.
Rating: 5
Summary: Geography is History!!
Comment: Background: Geography is History!! So went an advertisement from a telecom company a few years ago. And as globalization proceeds to breakdown national boundaries, open up cultures and increases access for economic activity, an awareness of this process of breakdown of geography has become a necessity for any corporation wanting to grow and flourish. Increasing size in this dynamic environment brings with it many challenges including increasing structural complexity, need for quick and seamless communication to manage this complexity, as well as an ability to assess and predict the changing external world, recognize opportunities therein and fashion nimble responses to gain competitive advantage. 'Designing the Global Corporation' is a book written to address such issues in an attempt to help managers structure their thinking towards an increasingly boundaryless world.
Synopsis: Jay Galbraith begins his book by arguing against the KISS principle (Keep It Simple, Stupid!) of organizational design. He recognizes that increasing foreign direct investment (FDI), breakdown of trade barriers and improved communications via media like the Internet along with a corporations need to reach customers globally have increased the complexity of doing business. Corporations could fight this complexity and simplify their operations, or learn to accept, manage and in fact use this complexity as a competitive advantage against simpler competitors.
He then goes on to inject great precision into the concept of a globalization for a corporation and defines 5 different levels of international development in increasing order of complexity. A corporation may develop a competitive advantage in its home country and then try to export this advantage to international destinations, evolving through different levels of international development. Or, a corporation like Logitech, may be designed as a transnational corporation from its very inception, with hardware R&D located in Switzerland, software development in California, manufacturing in Taiwan and sales in every country. Evolution from level 1 to level 5 may not be inevitable and/or desirable, with many companies deciding to settle into a particular niche depending upon the nature of their business and their long-term goals.
The rest of the book is devoted to a very clear, well-illustrated nuts and bolts description of designing global corporations with different levels of internationalization. The geographical entity headed by a country manager, multinational single business units and the multinational multi dimensional organizations are described in great detail. Underlying theme of this entire discussion is that the structure of the organization has to cater to its overall strategy, and the former has to change as the latter evolves.
The author spends considerable time and space on the need and means for developing informational and decision-making networks within such complex organizations. Here again he describes 5 different types of networks in increasing order of complexity beginning with informal voluntary communication and going up to a formally structured matrix organization. He discusses the advantages and limitations of each and how such networks may be used to propagate the agenda of the corporation. As a corporation increases its level of internationalization, it has to deal with increasingly complex networks that transcend geography, business function and culture.
He ends the book by describing the 5 dimensions that a global corporation must learn manage in order to remain successful. These 5 dimensions are managing functions, geographies, product lines (or business units), customers and solutions.
Finally, he writes, "Regardless of whether globalization continues, stalls, or even reverses, the models described in this book should continue to guide organizing choices.....and as businesses struggle to compensate and thrive on their ever expanding journey, the ideas and structures presented in this book can serve as a road map."
Critique: The author has presented his ideas very clearly and illustrated them with many examples from real companies. The organization of the book follows a logical flow of thoughts and the language used makes it fairly readable. Having said that, the complexity of many of the concepts presented in this book precludes it from being a casual bedtime reading, rather it demands full concentration and a careful attention to detail from the reader.
Rating: 5
Summary: Highly Recommended!
Comment: Globalization has become such an overused buzzword that it has become nearly devoid of meaning. Here, author Jay R. Galbraith injects new precision into the concept: Going international means plenty of hard work and painstaking attention to detail. Because every company's strategy, market and competitive advantage is unique, it's impossible to define one single, perfect, organizational structure for an international business, but Galbraith provides some fascinating alternatives to consider. Although Galbraith's book is jargon-filled and dense, it is full of useful, illustrative examples. He manages to reduce international business to its simplest form: A company develops an edge, and then tries to take it abroad. This involves many challenges, which Galbraith describes in rich detail. So if your company is multinational - or wants to be - we at getAbstract recommend this book to you. It is tailor-made for executives who are involved in international business - or who hope to expand their global reach.
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