Globalization

Imagine that you are hired as a consultant by each company to advise senior management on how each company might move towards a "transnational" organizational model along the lines described by Bartlett and Ghoshal. What organizational features would you look for to assess how close or far away the two companies are currently operating according to Levitt's model of the global company, which of the two companies do you think would face the greatest challenge in moving towards a transnational model?

According to Bartlett and Ghoshal "Success in today's international climate- a far cry from only a decade ago - demands highly specialized yet closely linked groups of global business mangers, country or regional managers, and worldwide functional managers." As a hired consultant to either The Boeing Company or Hilton Hotels, the first step would be analysis/change in the management structures of the corporations.

Firstly, communication procedures must make use of the peak information technology; this will help lay a solid foundation for leadership effectiveness through information resources. The competencies of all divisions must be able to be synergized, and managed through a flawless communications network. The matrix structure imperative for global success in a transnational company calls for less hierarchical structure than older multinational companies called for and requires the four types of specialists (business manager, country manger, functional manger, and corporate manager) all be able to capitalize on each others efforts and skills.

The business manager will act as strategist, architect, and coordinator. Boeing and Hilton must have in a place a manager who can configure departments worldwide, coordinate transactions across borders and link capabilities across barriers. The business manager must have the ability to coordinate dispersed operations and skills, and build them together in a fitting manner for the most competitive solution.

The country manager's role includes that of sensor, builder and contributor. S/he must be able to sense what is happening in terms of growing trends, opportunities, and threats. They need to build local resources