Several researchers provide a detailed examination of the Eastem view on strategyincluding Chu (1995), Yip (1998), and Ohmae (1982). Schneider and Barsoux (1997)make the important distinction between Eastern and Western perspectives on strategy.They explain that the roots of cultural impact on strategy beginning with the wayEastern managen think compared with Westem managers. It is explained by lookingat the following concepts:The rational/economic view ofbusiness. This assumes that the firm's externalbusiness environment and the organisation itself are objective realities that aresimilarly perceived and analysed by intelligent managers. This view assumes thatmanagers can gather information and, using common tools and frameworks, canmake strategic decisions that influence the future of the organisation.Doing V being. This reflects different perspectives on what the organisation is,rather than what it does. Eastem managers focus on developing the 'right stuff orstrategic traits, while Westem managers focus on makingthe'right moves', orshategic actions.Controlling V adapting. Westem managers feel they can control their externalbusiness environment and their organisation's future, while Eastern managersperceive there is more uncertainty, and they have to be able to adapt to changes inthe environment. Further details are provided below:In summary, Schneider and Barsoux explain the Eastern view of strategy as:Strategies emsrge, evolve, are a 'pattern in a stream of decisions over time', thingsgetting done. The Focus is on BEING rather than DOING, the focus on having'competencies' and resources rather than strategic actions. While the Westem view ofstrategy is: Shategy sets a direction, a way of competing, the firm can influence itsdestiny. The focus is on DOING rather than BEING and firms concenfate on makingthe 'right moves'.Organisational Structure and ControlDelinitionsOrganisational structure is a firm's formal role configuration, procedures, governanceand control mechanisms, and authority and decision making processes (Hitt et al,2002). Structure reflects what managers think the firm should do and how it does itswork. There most common organisational structures discussed in the literature are thesimple structure, the functional structure, and the multi-divisional structure. The latterstructure includes regional and product structures. The literature also discussescomplicated strrctures, such as the matrix and network, which are designed tointroduce higher integration and cooperation.Underlying organisational stnrcture is the concept of control. Strategic and financialcontrol are the two main types of internal controls used to support the implernentationof strategies in large firms (Hitt et al). Control is defined by the locus of decision-making. Most researchers discuss this in terms of centralisation or decentralisation
and, in international business, this determines whether key decisions are made by'
global headquarters or at the country level by subsidiary managers. Researchers also
talk about personal and cultural control as ways of managing complex social and
cultural systems within a multinationai.
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