M-for vs H-form: The Differences and Similarities

Question 1 

Numerous competitive advantages are linked to a global product design. Firstly, the company manages to guarantee quality on the products. Although companies make a variety of products, they design them while maintaining quality. As such, they manage to establish a strong brand that is accepted and recognized in all nations. in return, the marketing team then uses the strength that comes with global brand to win customers at the local level. 

Global product designs enable companies to perform on a platform strategy. It gives them a chance to establish a strong product with a wide range of versions for customer segments and individual markets. The platform gives companies the chance to launch numerous products on the platform. 

Question 2 

M-form design refers to a situation whereby a parent company gives it name and brand to other smaller firms to use it. the company is divided into small entities, with each taking charge of manufacturing products. The approach is mostly used by big companies with aim of reaching out to huge customer base. In contrast, the H-form design refers to a firm structure whereby the constituent branches are ether partially or fully owned by a holding firm. International firms use M-form whenever they want to go global and target huge client base, while the H-form is applied whenever international companies are intending to merge 

Question 3 

While establishing international control system, a firm needs to take four steps: set up performance control standards, measure the actual performance, do a comparison performance against standards and respond to deviations. 

A firm can overcome resistance to control system through establishing effective controls, conducting checks and balances, and encouraging participation from employees. 

Question 4 

Behavioral aspects of international control are evident where organizations attempt to control employees and their behaviors. In often cases, control is aimed at influencing behavior of individuals in a bid to realize organizational goals. Some organizations resist to control because they fear employees might feel uncomfortable and end up resisting control.