Chapter 13 International Organizational Structure

Chapter 13 International Organizational Structure - Chapter...

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Chapter 13 International Organizational Structure Organizational structure defines the power relationships within it Factors that influence structure o Number of lines of business Multiple or single o Product diversity o Customer differences and tastes o Geographic breadth o Specialized skills involved in the production of products International Organizational Structures o Number of lines and product diversity= single entity or multiple o Difference in taste and geographic breadth= regional differences o Specialized skills= functional training required Global Functional Model o Few differences in customer tastes, but highly specialized skills are needed o Advantage: efficiencies, economies of scale and rapid transfer of skills o Disadvantages: inflexibility, local dysfunctions, market rejection, bureaucracy and discourages initiative Geographical Model o 1 st level of managers beneath corporate headquarters=regional specialists o Advantages: flexibility, local needs and quickly adapts to markets
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Chapter 13 International Organizational Structure - Chapter...

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