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Global Leadership and Management: Apparel Retailing Sector - Essay Example

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This research is being carried out to evaluate and present the dynamics of structural relationships between the parent company and its subsidiaries including decentralized federation, coordinated federation, centralized hub and integrated network model…
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Global Leadership and Management: Apparel Retailing Sector
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Download file to see previous pages petitive strategy emphasized cost advantages and quality assurance, and required stiff control over product development, procurement, and manufacturing. A centrally-controlled, export-based internationalization strategy with communications intensive, people dependent and group-oriented management practices are the rule to play the game. A global strategy with focus on exports is the key feature of such MNC’s. Loreal is a good example of such an organizational structure (Schein, 1990, pg 207). Integrated Network Model: It is a matrix based organizational structure which builds and legitimizes multiple diverse internal perspectives able to sense the complex environmental demands and opportunities. In such a structure physical assets and management capabilities are disseminated internationally but are interdependent. It has developed a robust and stretchy internal integrative process. In this case parent company doesn’t need to centralize activities for which global scale or specialized knowledge is important. It gives subsidiaries the ability to become the company’s world source for its products. These subsidiaries can have their thumbs on the local pulse in trends and fashion. Subsidiaries become interdependent and distributed where specialized resources and capabilities are shared. Enormous flow of components, products, resources, people, and information is apparent across parent company and its subsidiaries. However decision making can be a complex process of coordination and cooperation. Unilever is an example of such an organizational structure. References: Hofstede, G. (1980) Culture’s Consequences. Beverly Hills: Sage. Schein E.H. (1990) Organizational culture and leadership. San Francisco: Jossey-Bass. Core Competency The process of acquiring, merging and...
According to the research findings the United States of America is the undisputed leader of retail industry in terms of revenue numbers. From the vantage point US tendency to augment global sourcing is the major reason of growing retailer concentration. Traditional boundaries are blurred has intensified the competition between manufacturers, retailers and marketers has intensified, leading to a realignment of interests within the chain. MNCs today need to face fast and technologically influenced changes in global markets. The complex and volatile nature of international markets require management to find new ways of efficiently meeting rapid changes and optimizing global efficiencies, national responsiveness, and worldwide learning to find new strategic orientations. The process of acquiring, merging and creating wholly owned subsidiaries across the globe under the banner of Unilever is what the firm itself has termed as "Unileverization". Unilever has embedded a central decision-making culture worldwide. Unilever has distinctive strengths in management it invests heavily in its recruitment process. It hires some of the best available graduates every year not only from its home economies, but in many other countries also. Its "localization" policies opened up the most senior positions to nationals within the operating companies enabling Unilever to tap high-quality staff all over the world. Amalgamation of various sub cultures has created a strong corporate culture which acts as a central binding force of the company, preventing it from becoming a "conglomerate" even at its most diversified. ...Download file to see next pagesRead More
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