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Essay / Research Paper Abstract
A 6 page paper discussing reorganization as a function of globalization. A specific location of a multinational will continue to reorganize in the local area until it reaches equilibrium, and even then other areas of the company are reorganizing in response to the location's attainment of that goal. As the single multinational continues to expand into new markets, it will repeat the same patterns. The paper uses IBM in China as an example. Bibliography lists 5 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSglobReorg.rtf
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Unformatted sample text from the term paper:
There are many reasons that businesses periodically reorganize themselves. Their markets change, technology changes, products change, methods of production change, attitudes toward (and within) business change.
One impetus for nearly continual reorganization is globalization, however. The purpose here is to discuss globalization "as the base cause of the constant designing and re-designing, structuring and re-structuring
of companies." Reengineering and Reorganization In the early 1990s, many businesses were "stuck" in the past, even as their markets were changing as
never before. General Motors had lost billions to the Japanese interlopers in the wake of the international oil crisis of 1973-74, and the resulting realization by the American car-buying
public that the same "made in Japan" label that used to convey abysmal quality now translated to quality much greater than what Detroit was offering. The former CEO of
GM, Roger Smith, created the Saturn Division as a separate company because standard practices were so ingrained in GM operation and labor relations that taking on a new approach was
seen to be virtually impossible. It was in this type of domestic atmosphere that Michael Hammer and coauthor James Champy advocated "blowing up"
the existing enterprise. "Reengineering, which is not the same as Total Quality Management, refers to making dramatic changes in business processes to improve performance" (Keenan, 1993; p. 56).
Superficially, business process reengineering (BPR) appears to be making changes for changes own sake, but such is not supposed to be the case.
Reorganization can be costly, but changes in business process can be more costly if they are not made. Hammer and Champy define "reengineering very specifically as the fundamental rethinking
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