Read the two cases: (1) Minicase: Semiconnected Inc. - Must It Reorganize? and (2) Minicase: Justin Marshall - A Failed Global Leadership Opportunity. Discuss what organizational structure SemiConnected Inc. should have used when it decided to set up its first foreign plant in Taiwan. In the case for Justin Marshall, discuss cultural differences that led to Justin's failure in his leadership role of the company's Asia/Pacific division.
When SemiConnected Inc. decided to set up its first foreign plant in Taiwan, an international division was established at headquarters to oversee the Taiwanese operations. Finance and marketing people who had experience of working in Asian environment were hired to help the company in setting up and carrying out operations. When the facility was in production more firms in the nation were willing to do business with the company than before. As a result sales improved in Taiwan and improved overall financial position of the company. However this success cannot be sustained unless the company reorganizes to accommodate divisions in other countries in which the company plans to expand.
The new structure should have headquarters and divisional offices in country of operation. Each divisional office should have local staff and reporting should be done to corporate headquarter. However divisions should be allowed flexibility in decision making process. Due to absence of local staff there was no proper communication at headquarters. As a result it was difficult to assess market needs and competitor planning. With the new structure there needs to be high level of interaction between ...
The expert examines global business cases of semi-connected Inc and Justin Marshall.