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Network Organizations

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Submitted By rupang
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1. Introduction 2. Definition of Network Organisations 3. Reasons For Networks a. Advantages 4. Three Types of Networks 5. Three Types of Managers 6. Examples of Networks a. Dell b. GM c. BMW 7. The Future of Networks a. Cisco Telepresence 8. John’s Personal Experience 9. Conclusion

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By Team Four – Informal Definition By Miles, Snow & Coleman, “Managing 21st Century Network Organisations” – Formal Definition
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“…multilevel hierarchies have given way to clusters of business units coordinated by market mechanisms rather than by layers of middle-management planners and schedulers.” “…linked competitive success to doing fewer things better, with less.”
Dynamics, Snow C., Miles R & Coleman H. Managing 21st Century Network Organisations, Organizational Winter 1992, pp. 5-20.

“Established firms downsized to their core competence, de-layering management hierarchies and outsourcing a wide range of activities. New firms eschewed growth through vertical integration and instead sought alliances with independent suppliers and/or distributors.”
Summer
Miles, R. & Snow, C. Causes of Failures in Network Organisations, California Management Review, 1992, pp. 53-72

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Marketers and Distributers

Producers

Designers

Suppliers

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Globalisation
• Competition has reduced all margins; thus, firms must cut costs and improve efficiencies – economies of scale • Strong new players at every stage of the value chain

Technological Change and Technology Transfer
• Shorter product life cycles • Lower barriers to entry, firms have become ‘stateless’ and can move freely across international boarders • Faster, lower cost communications and computer technologies

Deregulation
• Legal and policy changes produce uncertainty and increase competition

Changing Workforce Demographics
• Domestic workforce is becoming more mature, diverse and less well

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