MNE Organizational Design: Structures & Advantages
Classified in Social sciences
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MNE Organizational Design Decisions
The Multinational Enterprise (MNE) organizational design decision:
- Considers differentiation and integration, and the proper balance between them. This balance is rooted in the diverse requirements and circumstances of different locals and business units.
- The need for integration comes from the managerial perspective to maintain overall coordination and control, ensuring strategy implementation.
Global Product Structure
Advantages
- Global vision
- Resource leverage
- Strategic focus
- Simplicity
- Accountability
- Standard product introductions
- Enhanced speed and decision quality
- Self-contained product development and introduction
- Development of talent
- Low interference from other divisions
Disadvantages
- Limited cooperation, communication,