the spot light of australia

Project Description:

paraphrase it like always
questions & suggested answers

1. what are some current issues facing australia? what is the climate for doing business in australia today?

answer: australia is home to more than 20 million people, however, the population tends to be spread mainly along the coast and over to perth. while its government is solidly democratic and modeled after great britain’s, the country’s culture is free spirited prompting many mncs to decentralize decision making in australia. economic growth is strong, and there is demand for experienced managers to help develop certain sectors of the economy.




2. what type of organizational structural arrangement is the mnc going to use in setting up its australian operation?

answer: the chicago based mnc is going to use a subsidiary arrangement with this overseas operation. a close reading of the case shows that other overseas operations are not being handled this way, but the australian venture will be a departure. figure 9-2 in the chapter provides an illustration of how the organization chart could be drawn to reflect this new operation. a point of discussion could be the line showing who the subsidiary reports directly to, the chief executive officer or a vice president in charge of international operations. the case says that the head of the australian operation will report directly to headquarters.

3. can this mnc benefit from any of the new organizational arrangements, such as a joint venture, the japanese concept of keiretsu, or electronic networks?

answer: the company in this case seems more inclined to go it alone drawing from direct experience in the u.s. because the culture and way to do business is so similar to the u.s., a joint venture would not be as attractive as it would be in a more different country. however, joint ventures are still as a rule very effective organizational arrangements and should not be automatically ruled out. if this financial services firm decides to diversify and get into other types of businesses, then it could consider joining together with some big australian firm in a keiretsu type of organizational arrangement. but for now, this would probably not be appropriate or relevant.

4. will this operation be basically centralized or decentralized?

answer: the case clearly indicates that this operation will be decentralized. notice from the information that is provided that the head of this overseas operation will be responsible for sales and profit objectives, but that decision-making will rest with the manager.
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Price Type: Fixed

Project Budget: $17 to $18
Completed
Total Proposals: 1
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