organisational structure

International Division Structure

Centralizes all international activities in one division, separating them from domestic operations.

Pros of International Division Structure

Easier for CEO since international and domestic divisions are now separate; raises status of overseas operations.

Cons of International Division Structure

Rival divisions might emerge; headquarters may not allocate resources fairly to International Division.

Global Product Structure

Each domestic division operates as an autonomous profit center with worldwide responsibility for product groups.

Pros of Global Product Structure

Focuses on customer needs, develops experienced managers, manages product life cycles, and provides feedback to HQ.

Cons of Global Product Structure

Duplication of functions and staff; focus only on best-sellers; challenges in developing international knowledge.

Global Area Structure

Decentralized structure where each area manager is responsible for all products in a specific geographic region.

Pros of Global Area Structure

Responsive to local tastes and regulations; allows for regional economies of scale.

Cons of Global Area Structure

Lack of product knowledge and international cooperation; duplication of smaller facilities.

Global Functional Structure

Highly centralized structure focusing on basic organizational tasks like production, marketing, and finance.

Pros of Global Functional Structure

Fewer managers control operations; minimizes duplication of facilities.

Cons of Global Functional Structure

Coordination of independent functions can be challenging; CEO bears responsibility for profit.

Matrix Structure

Combines two organizational responsibilities such as functions and products or regions and products.

Pros of Matrix Structure

Encourages more global managers and collaboration across functions.

Cons of Matrix Structure

Complexity due to dual command; confusion with two bosses and steep learning curve.

Mixed Structures

Hybrid organizational forms combining different structures to meet specific organizational needs.

Transnational Network Structure

Links diverse subsidiaries in a network with interdependent relationships for resource sharing.

Choosing a Structure

Factors include integration vs responsiveness, firm's history, ability to change, business strategy, and management philosophy.