VIRTUAL ORGANIZATIONS
The virtual organization is a network of independent suppliers, customers, and even
competitors, generally tied together by computer technology (Roger, 1991). They share
skills, costs, and access to markets. It is tend to have flat structures in which information
and decision making move horizontally (Judith R.G, 2002). Through the support of
modern electronic system, it becomes possible to link people across formal organizational
boundaries (Judith, 2002, quoted in S.G. Straus, S.P. Weisband, and J.M. Wilson, 1998).
Virtual corporations have some major characteristics (Judith, 2002, quoted in Byrne. n.d.)
as following state: technology, excellence, opportunism, trust and no borders. Technology
makes distance no longer a problem while entrepreneurs or companies far away from, due
to the computer networks link people all over the world. Excellence was showed by each
partner bringing its core competencies to the corporation, which can exert all advantages.
Companies make alliances for specific market opportunity and this is a more efficiency
work way than any others. Members in a virtual organization must trust their partners due
to they meet the need by cooperating. The new communication ways were brought by
computer networks, which blur the traditional hierarchies and boundaries.
Metersbonwe took the lead in adopting virtual organization among Chinese garment
industry by brand chaining operation. The company stated to take full advantage of market
resources by controlling, retailing, the core segment in the link in order to concentrate on
its core business, Brand construction and Design, while non-core business was outsourced:
Manufacturing and Sales network. At present, over 200 manufacturing factories have
established long-term cooperative relations with Metersbonwe Group, saving 62.5m$ for
the company. More than 900 franchising shops save an average of 62.5m$ every year as
well. At the same time the company collects capital from the franchising fees.
Metersbonwe achieved great success by using this model.
Figure 1: Metersbonwes network
MARKET-ORIENTED STRUCTURES
The market-oriented structure groups workers according to the market they serve, such as
product, project, client, or geographical area. Large companies that implement a
market-oriented structure may have market-based divisions or create a conglomerate of
separate subsidiaries (Judith R. Gordon, 2002). I believe that this structure is more
adoptable by those multinational corporations which have to respond to diverse cultures
and meet the unique needs of various countries. The teams have the same goal meeting the
market demands. However, this structure duplicates resource so as to increase the costs.
Before reformation, Philips had a market-oriented structure. Each region filiale had the
