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La Bella Analysis

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4.1 Level of Internalization

WORLDWIDESTRATEGICORIENTATION | STRATEGY | STRUCTURE | INFORMATIONSYSTEM | HUMAN RESOURCES | ODINTERVENTIONS | International(Original La Bella) | Existing productsGoals of increased foreign revenues | Centralized internal division | Loose | Volunteer | Cross-cultural trainingStrategic planning | Global | Standardized productsGoals of efficiency through volume | Centralized, balanced and coordinated activitiesGlobal product division | Formal | Ethnocentric selection | Career planningRole clarificationEmployee involvementSenior management team buildingConflict management | Multinational(New La Bella) | Tailored productsGoals of local responsiveness through specialization | Decentralized operations; centralized planningGlobal geographic divisions | Profit centers | Regiocentric or polycentric selection | Intergroup relationsLocal management team buildingManagement developmentReward systemsStrategic alliances | Transnational | Tailored productsGoals of learning and responsiveness through integration | Decentralized, worldwide coordinationGlobal matrix or network | Subtle, clan-oriented controls | Geogentric selection | Extensive selection and rotationCultural developmentIntergroup relationsBuilding corporate vision |

When organizations move from operating locally to operating on a scale that spans across countries, they must consider two factors that might determine the success or failure of the endeavor. Firstly, consideration must be given to the concept of global integration. This refers to how connected or disconnected the departments are globally; if business success depends on connectivity, the corporation must implement a business model to perform optimally. Secondly, the organization must take into account the issue of local responsiveness. Local responsiveness is characterized by how quickly products, services, and other

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