1 Introduction

At start we tell about the problem and how it can interest us and formulation of the problem and purpose of the case study at end.

1.1 Background
In changing organizations there have been two trends over the last decade. First there is globalization in the economy and second it is rare in an organization to have no projects in it. Although these trends are not new but they have became so common that they have large effect on our daily life. Also Martin Haag in Veckans Affrer, 1998-02-16 described it as the age of globalisation, and Sderlund in 2000 stated that projects are among the most importanteconomic and industrial activities in the modern society. Below are the reasons that why we believe that these two trends are interconnected. Due to globalization there are many global organizations that work across the borders. The main cause of this development is new technology and easy communication. These corporations are organized into independent units based on countries and these units work together in many ways as they are part of the same corporation. This collaboration is due to ease of communication but it still is very difficult to do globally. Despite the strong culture in organization still there are some differences because of geography like differences in language, education and culture. Due to changes in organization and culture product characteristic has also changed as new products are more virtual in shape and its life cycle has been shortened. New products are developed before the old versions reach customers due to product development. Product development is traditionally done by assigning a team that work to attain goals with limits of time and money. As the link between projectification and globalization is described above. According to computer magazine published in 2000 the cultural difference always creates problems when working in different countries. Also in an interview with employees of Ericsson indicate that in global projects they faced problems due to culture.

1.2 Problem discussion

Ericsson as the best telecom company has done many of the projects and they are very good at it. These projects and products have become more global and complex due to changing trends and new technology. For telecom sector there are two distinctive characteristics, first projects are very large that uses the latest technology which means there are many subproject used due to which company uses resources from all over the world to satisfy its customers. The second issue is time. The company must not be left behind in time from its competitor to gain first mover advantage. The projects must be started at same time despite interdependencies in projects thus making it more complex. The life cycle of product is becoming shorter and a slight delay can cause company to lose billions of business and drop in its market share. Regardless of Ericsson good performance in the past , they still need things to improve. They require lots of extra cost and massive efforts from employees to finish a project because they cant get project right first time no matter how much they put effort in coordination and they have to get it done again it get it right. A way to solve this problem that company has carried out is development of a common routine for how their projects should be managed and co-ordinate called PROPS. It contain all

information relating to technology issues and process by which project should be carried out. It promises best result but best results are still to be seen despite little improvements due to PROPS. Why cant company like Ericsson solve this problem? According to workers of the company the main reason is Ericsson is working with latest technology. Another issue might be coordination between different units. Company needs coordination between its different units and if coordination is not there the result will not be satisfactory. Ericssons technology competence cannot be questioned because they have best technology. So technology is not the problem. But coordination in the company is also good because PROPS is well known to its employees. 1.3 Problem formulation Ericsson regardless of its technological competence and coordination couldnt finish its project within its cost and time. Some people told its because of technological but as we studied deeper and also some people hinted its because of the low management, unclear information and culture. Can these be issues that are cause of the problem? To find answer of these problem we have to find out: What organizational characteristics does our project carry? How is the project managed, i.e. where are critical decisions made and how is power distributed within the project? What does the information-flow look like and how is it communicated between different parts in the project? 1.4 Purpose What is project structure and how it is done in MNCs. 2 Methodology

We will discuss our analysis on science and scientific debate and give reader our view on the topic. 2.1 Scientific ground values Science is the knowledge collected by scientific methods and the methods through which we get knowledge is called science and there are standards about what is science and what is not. 2.1.1 Science as fact of a matter or irrelevant subjective interpretations In traditional science reality is something waiting to be found and understood and science should be used for this purpose and scientist should try to discover about the subject. For example

mathematic is science that is done this way and no there is no alternate answer to he proven answer. But in developed social sciences traditional method does not provide relative answer and according to Giljie & Grimen scientific world can be split according to people acting in different methods. Basically as natural sciences objective is to explain the things and give true picture so main purpose of science is to provide tools to understand or explanation a problem not to solution. 2.1.2 Our ground values and what it has to do with the thesis In the thesis having two views above in mind, it is important for us to declare how we look at science and its reliability that we not trying to provide an absolute truth. With help of hermeneutic approach we believe we can still get scientific validity in this report although we are not free of values, but we will try to be open-minded dealing with information and also understand our role as researchers is can make a huge difference in the result of this thesis. 2.2 Conclusion by Deduction or Understanding by Induction By only seeing theories we cant find subjectivity arising due to human interaction. So we will use deduction process induction approach and empirical findings to find the result. In our studies we have learned to look certain situations in a specific way also using only inductive method would mean the author would have no idea where he/she is heading. So we will combine deduction part that comes from our knowledge and experience and inductive part that is the way we are open to new information 2.3 The qualitative case study method A case study gives three-dimensional picture and illustrates relations, micro-political issues and power-patterns in a certain situation. The trend is to give any experimental study, the name, case study but the case study is an examination of specific phenomena i.e. a program, a happening, a person an institution or a social group, given by Merriam in1998. On contrary to experimental studies, case study focuses on process not result, the context and to explore rather then to prove. 2.4 Our method We choose qualitative case study method and tied to find information and infer it to best of our knowledge. 2.4.1 Why we find this method to be the most appropriate one We choose it because our aim is to understand problems in international development projects relating to management and information and we know traditional answers but want to see what precisely the problems are. Case is also suitable to understand as we have chosen descriptive case and our work is inductive by nature. 2.4.2 How we have collected data

The data we collected is done by interviews at company and person chosen were project mangers that gave us good information about what problems they face during the project. We also promised interviewees anonymity due to small population in the project and to get reliable answers. To find written material we used Ericsson Intranet because it was well organized and documented. 2.4.3 Critics against the method chosen Choosing one method mean you neglect other and because we studied deep research may become narrow. We are not trying to find perfect solution and as we have studied part of problem that maybe not evident enough but we tried to see from as many angles as possible. In interviews we struggled to find appropriate answer due to respondent fear but as one of us is an employee at Ericsson, we believe that we have conquer some problems. Last point is we interviewed people high in the hierarchy so it may not provide true picture of project studied. 3 Case presentations In this case we will present Ericsson, SCSA department and Mitsunami. 3.1 Ericsson Ericsson the largest corporation in Sweden in 2000, founded in 1876, operating in over 140 countries with net sales of 273000 MSEK. The company is generally known to people as producer of mobile phones but they receive large amount of revenue from its infrastructure. Ericsson has six types of business divisions. Consumer products Data Backbone & Optical Global services Internet applications Muti services Mobile systems

We opted for SCSA (Service Capability Servers & Applications) in the Internet Applications & Solutions (DIA/IAPP) business division that matches our goal.. 3.2 SCSA SCSA is joint product unit that develops services and platform for internet and 3G communication. They handle related issues to IAPP infrastructure and collaborates with IAPP demands. It has many products which are further divided in sub products that are liable for platforms, communication and mobility service solutions for fixed, mobile network and Internet. Total employees working in SCSA are 1300 from different countries. 3.3 Mitsunami

Mitsunami is a complex project started by SCSA unit that is dependent on other projects. To understand project we have to know how technology is changing in telecommunication industry. Telecom technology has changed a lot during past few years, first there were first generation mobile also called NMT (Nordic Mobile Telephone). In 90s came the second generation mobiles that used digital technology. It was able to provide both telecommunication and internet facility but with little capacity. Now in 21st century 3G technology is taking its role that has both internet and telecommunication facility that can transform mobile technology. Mitsunami is project for technology progress to 3G by which it is possible to have high performance and handle all services through same equipment. Mitsunami itself is not a product but a combination of five different mobile softwares that supposed to collectively work together. The project estimated from April 2000 to july 2001, a short project according to Ericsson. The project divided into six different tollgates TGs and today they have nearly at TG3 which means they are left behind from time plan. Nearly 70-80 full time and part time work in five different line organizations. 4 Frame of references Frame of reference includes our theoretical framework by which we will analyze and description of ways we looked on certain issues. 4.1 The organization the view of the authors An organization is often viewed as a creature having its own life but we will look it with a different perspective. 4.1.1 Organization vs. human Organization is defined as group of individuals having its common goals by Ahrne (1997). An organization is depends on its individuals and every act is done by these human individuals. To achieve our common goals we need certain resources and by forming an organization we can have those resources. Human is social creature that wants to be part of something with others. So individuals in an organization have some own goals and they will not act only to meet the goals of organization. 4.1.2 The attempt of joining forces The individuals are bought together and organizations are made so that we can achieve goals that are better then goals achieved by individual on their own. To achieve goals there must be coordination as four men pushing the car from each corner cant push the car unless they push it from behind. Apart from coordination cooperation is also needed i.e. the four men must want to push car in the same direction. One man might be environmental activist that might want to stop all traffic; he will try to stop other from getting the car started. He might not stop other three men but he will make their work lot harder. This example might not be admiring but it is agreed that opportunism effects the organization. We do not want to apply theory X but it is fact that individuals have different goals and they should be taken care of. These issues are handled by different organizations and most common way of handling it is hierarchies.

4.1.3 Why the project organization is a suitable solution In previous times organizations standardized employees work by continuous monitoring of their achievements but this method used too many resources. However nowadays organization handles by having control of mind by clan-like constellations by which you can overcome some of the above mentioned problems. Organization should have a strong culture where employees take organization as home that they cant cheat. Clan theory has its limitations as large organizations have thousands of employees having their free will and thus causing problem for the organization. Due to this projects are important within organization. Every project has its uncertainty as how it should be done and what is to be achieved and involving full organization will be inefficient, so project are done to get advantages of what clan can have. 4.1.4 Projects characteristics Different authors have different view about projects and also it has changed a lot over last few years but some characteristics of projects are they are well defined, well known to members doing it and challenging and anchored to employees. All employees might not have same goals but they should be coordinated with the objective. The project must have goal and time and resources must be allocated at the start and the view of project must be unique from other company objectives. The above traditional approaches to project are questioned in different time and uniqueness is brought in it.

4.1.5 How to handle a project organization-wise Frequently project in the organization are structured as corporation although many theoreticians concur it otherwise. As projects are done by individual from different area of the organization for a short time so they keep their line function thus causing matrix structure. These structures apply two way responsibilities first they have to answer their line manager and at same time to project manager. The extremes of five types of matrix structure identified by Larson & Gobeli are with co-ordination carried out by functional and upper levels of management and second is a manager is put in charge of a core group of personnel from several functional areas who are assigned to the project on a full-time basis.

4.2 Management - a combination of power and Authority

Terms power, influence and authority used in handling managerial issues are defined by many authors in many ways but despite of their exact meaning they are used to show individual effect

on other mindset and actions. Leaving the discussion on exact meaning, we will describe the difference between power and authority, as we perceive them. Power is an agent capacity to influence other. Authors view that power over you does not mean anything so it should be something you obtain in comparison with other and power can shift and different power is needed at different time. Sources of power can be divided into formal power that arises from organization structure that include power to give reward and punishment to other that may influence other and power of control over information and knowledge that include access to important information in organization and how it will be distributed in the organization. Barnard was first to differentiate between power and authority and concluded that to apply power the obligatory must accept it to make the power legal. He does not only see power associated to boss but it can be an agreement between two parties that what one can do or cant do. Barnard reasoned that power is not given from top level but is given by subordinate as a result of common agreement but Weber sees it as mastership from imposer rather than interaction that need authenticity for effectiveness. He defined different authority as: Legal authority that arises from generally laws by establishment developed on formal rules. Traditional authority that comes from tradition from our culture or religion. Charismatic authority that, arises due to personal skills Professional authority that arises from excellent skills in a particular area were defined by Etzioni like doctors or engineer and authors that have provided books on management. Manger should focus on building teams build teams, communicate the project objectives and co-ordinate action etc like in management books for example Randolph & Posners paper that provides ten principles for managing a project.

4.3 Information and communication

Information is something like telling something to someone but was it communicated. Communication is often taken as simple but still we misinterpret each other in our daily life. Organizations success lies in communicating effectively but still it is not taken that seriously. Information is something to be delivered and communication is way of doing it as defined by Drafke & Kossen. In theory for communication sender must encode message in effective manner then send it through appropriate channel and receiver decode message according to his knowledge and then in respond the initial receiver encode the message and then initial sender decodes it. The channel chosen is also important for success and different channels can be used in communication. Five channels in organization stated by Drafke & Kossen are as follow: Face-to-face (F2F) considered being most useful method of communicating as Johnsson acknowledged that all other methods are its substitute. Importance of channels is shown by Merabians conclusion stating that words are only seven percent of a message sent which also indicate that message is most understood by non-verbal communication. Face-to-group is the second best way of communicating but not as demanding as F2F as you communicate with several people at the same time. Telephones are third best option as over the phone you can receive more than the seven percent because it is possible to give feedback and detect shift in person voice. Written communication is considered fourth option despite of common use as possibility of feedback is not good, and creates misunderstanding but still it is the most common way of communicating in organizations and due to speed and cost.

 Thirdparty communication even done mouth-to-mouth between the different parties is the last alternative as it can lead to many misunderstandings between parties.

4.4 Internationalization & culture

Internationalization and culture can be discussed at different levels and we will give our views on these issues.

Internationalization
Companies going global are not a new looking at history as merchandiser has always found new routs to expand their businesses. Internationalization reason and method has changed though and notion of MNCs and globalization are key words in environment of spreading companies all over the world. MNC a long term feasibility as determined early by Perlmutter and today internationalization is a way to market products, capture foreign resource advantage and ensure global welfare. These changes have affected the organizational structure and working method and working method depends on culture you belong.

Culture
Cultural issue is very unclear as mostly it is used to end discussion when the global problem arises but it is rarely defined. Culture is all around us. We shift in culture when we go from one place to another like organizational culture to family culture when we get home. Only requirement for culture is to be human. Hellgren & Melin identified how different minds of the individuals and the industrial wisdom affect each other when they are together. Different cultures have different rules and when due to different culture dilemmas are caused in internationalization. Two cultures cause conflict when they are both try to control the mind of the individual.

The cultural differences are vital but still organizations tend to change it.different levels of internationalizationThe view of how this cultural battle will end is already exhibited in the quote of Bjerke (1999) above. Still most organisations try to change this outcome in one way or the other, and theorists have also tried to detect different levels of internationalisation (Malnight, 1995). In Perlmutters (1969) study he identified three degrees of internationalisation based on the states of minds of the CEOs in different MNCs. Where Perlmutter was investigating the attitudes of executives, Malnight (1995) developed a model with four stages, and which is based on the way of working in a MNC. Putting the two studies together, as we do below, one gets a fairly good picture of the impact of different kinds of internationalisation.