Workshop 8
Workshop 8
Global Structure
Around the World Hotels (which now has branches in Vietnam, Thailand, Malaysia,
Indonesia, Korea as well as China and Europe) wants to optimise its economies of scale
on a regional basis. The CEO of Around the World Hotels wants to appoint a Director of
Asian operations to be based at the Beijing Businessville Hotel to internationalise the
hotel chain.
Assume you were the person appointed to the job, and identify the issues that need to be
addressed in coordinating the hotels on a regional international basis.
Propose a structure for the Asian operations by considering the following questions;
(a) what control mechanisms would need to be put in place to make sure the
businesses are all operating as well as possible?
(b) What feedback do you provide to managers to let them know how well they
are performing – how can you tailor that feedback to suit the cultural context?
Students to present solutions to Q 8-10, 8-11 & 8-12 of case study titled ‘HSBC in 2015’
on page 284-285 of the textbook. Audience to prepare discussion points for the questions.
Students are required to answer the three questions in essay format (maximum 450 words
in total). Please print number of words at the end.
1. Explain the need for an MNC to “be global and act local.” How can a firm design its
organization to enable this?
3. What is a transnational organization? Because many large MNCs are moving toward
this format, it is likely that you could at some point be working within this structure—
how do you feel about that?