od global scenario

8/7/2019 OD Global Scenario

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Organizations operating in newly

emerging economies are increasingly

turning to Od practices to solve someproblems and improve effectiveness.

Example-

The Learnstatt concept, a form of qualitycircles, developed from courses in which

immigrants were being taught to speakGerman


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2) Unprecedented (great in quality,

amount)availability of technological andfinancial resources on a worldwide scale

ExampleThe development of Internet, WWW, E-

commerce has increased foreign

government and organizations access to

enormous information resources andfueled growth and development.


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3) Emergence of global economy

Example

Asian financial crisis in 1999 aptlydemonstrated how independent the worldsmarket have become. Many foreignorganizations are maturing and growing by

entering the global business community.

As organizations expand globally they arefaced with:

Adapting structuresInformation systems


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Driven by the competitive pressures ,

lower trade barriers and advances in

information technologies , companies

offer products and services in multiplecountries

Worldwide organizations must balance

products and functional concerns withgeographic issues of distance, time,

culture.


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TYPES OF STRATEGIC ORIENTATIONS:

GLOBAL ORIENTATION

MULTINATIONAL

TRANSNATIONAL


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It is characterized by a strategy of

marketing standardized products in

different countries

Ex- Manufacturers of office equipments,consumer goods, computers, tires and

containers can offer same basic product

in any country.

Sony, Honda started using this strategy in

1970s and 1980s


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Planning activities often are centralizedat corporate headquarters to achieveimportant efficiencies necessary for

worldwide coordination of emerging

technology .

Ex- At American express , charge card

marketing fit to local values The dont

leave home without it and "Membershiphas its privileges in US were translated toPeace of mind only for members in

Japan


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This combines the best of global andmultinational orientations and adds a

third attribute

It has the ability to transfer resources both

within the firm and across national andcultural boundaries

Ex-Otis Elevator , a division of United

technologies, developed a newprogrammable elevator using six

research centers in five countries


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Us group handled the system integration,

Japan designed the special motor drives

that make the elevators ride smoothly,

France perfected the door system,

Germany created the electronics,

Spain produced the small gearedcomponents


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od global scenario

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