Why is it essential for MNEs to consider coordination systems when implementing an organizational structure? Briefly describe each approach to coordination

What will be an ideal response?

The importance of coordination follows from the reality of life in the MNE. Designing innovative products in Taiwan, sourcing inputs from Australia, transporting them to production facilities in China, and distributing them to consumers worldwide creates interdependencies. Coordination systems synchronize rules, responsibilities, and relationships so that the MNE uses its resources efficiently and makes decisions effectively. Without the means to coordinate activities, the competitiveness of a strategy, no matter how brightly conceived, erodes. Therefore, designing an organization, whether the format is classical or neoclassical, requires managers apply coordination methods. Prevalent approaches include coordination by standardization, plan, and mutual adjustment. Standardization relies on specifying standard operating procedures; planning relies on general goals and detailed objectives; and mutual adjustment relies on frequent interaction among related parties.