Elements of the OLI framework

Explain the three elements of the OLI framework, and discuss each element of the model with examples where appropriate.

 

Sample Solution

Elements of O.L.I framework

The O.L.I framework is made up of three main components. They include ownership, location, and internationalization advantage. In this day and age of rapid globalization, it has become so common for companies to set up shop in locations that were previously outside their country of operation. For example, Shoe International is a company from North America that hopes to set up a shop in Asia and is currently deciding on the best approach to use in order to plan and effectively implement their expansion in Asia. Shoe International can effectively justify its approach by using the Ownership, Location, and Internationalization framework. This framework is useful in determining holistically if carrying out a foreign direct investment is viable for the organization or not.

Organizational structures constructed on a linear basis, such as Weber’s principle, tend to have centralized decision-making, constant control over their implementation and strict discipline. Matrix structures have a mainly problem-oriented nature, with the horizontal lines of information dominating. Hierarchical forms of organization are appropriate in established technological processes and relatively stable external conditions, and flexible organizational forms allow for rapid response to changes, are suitable for changing external environments and require highly qualified staff.

The use of matrix organizational structures requires the coordinated efforts of various specialized departments and highly trained-personal. They are appropriate for the simultaneous solving of several complicated tasks that make up a project that requires a high degree of coordination in the process of its development and realization. Since in practice the matrix structures are usually used in the development of different projects, they are also called design-matrices. A characteristic feature of the matrix structure is that its implementation does not require the removal of the existing structure. Another distinctive feature is the creation of temporary units to solve a particular task or develop a particular project or product. These temporary units may include specialists from the various units of the existing structure for as long as necessary. At the same time, these professionals perform their duties in the existing organizational units where they are constantly working. The newly created temporary units are headed by the president of the company. There is both a linear and a functional relationship between them. During the period in which the specialists work in the newly created temporary units, they are both subordinate to their direct line manager and the head of the temporary unit in which they are included. Matrix structures are an ef

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.