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The Organization of International Business

In: Business and Management

Submitted By uowaustudent
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Chapter 15
The Organization of International Business
Laws control the lesser man. Right conduct controls the greater one. – Chinese proverb

Opening Photo

Objectives
• Profile the evolving process of organizing a company for international business
• Describe the features of classical structures
• Describe the features of neoclassical structures
• Discuss the systems used to coordinate and control international activities
• Profile the role and characteristics of organizational culture

CASE: Building an Organization at Johnson & Johnson
The typical pharmaceutical company relies on global integration, given its steep product development costs and potential scale economies. Meanwhile, it must respond to local market conditions, obtaining government approval for each product in each country and establishing local sales and distribution systems. Consequently, headquarters and subsidiaries jointly implement the company’s strategy. Building an organization that can meet this mission is tough. One standout that does is Johnson & Johnson (J&J).
Since the start of its U.S. operations in 1886, J&J has evolved into the most broadly based health-care company in the world. International activity began in 1919 with J&J Canada. Headquartered in New Brunswick, New Jersey, J&J lists 250 operating companies across the world, holds more than 54,000 U.S. and foreign patents, sells products in more than 175 countries, and employs about 115,000 people worldwide, with nearly 70,000 working in 57 countries outside the United States. Its steady success is renowned. Sales in 2010 were $61.6 billion and it increased its dividend for the 49th consecutive year. J&J is generally regarded as the most admired pharmaceutical company in the world. The quality of J&J's portfolio of anti-infective, cardiovascular, dermatology, immunology, and oncology products is

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