Concurrence of companies

Characteristics of International Division Structure:

<!--[if !SupportLists]-->•<!--[endif]-->Organized by function, product, or by geography – such as country units within a region.

<!--[if !SupportLists]-->•<!--[endif]-->Reflects a shortage of capabilities: With few employees having knowledge and experience in international operations, it made sense to cluster them together rather than to spread them throughout the organization.

<!--[if !SupportLists]-->•<!--[endif]-->Used mainly by firms with a low ratio of foreign to domestic revenues and low foreign product diversity.

Global Product Structure decision involves:

<!--[if !SupportLists]-->•<!--[endif]-->Locating manufacturing and other value-creation activities in the most appropriate global location to increase efficiency, quality, and innovation

<!--[if !SupportLists]-->•<!--[endif]-->Considerations made on coordination and integration problems

<!--[if !SupportLists]-->•<!--[endif]-->Locating a structure that can coordinate resource transfers between corporate headquarters and foreign divisions while providing the centralized control that global strategy requires

<!--[if !SupportLists]-->•<!--[endif]-->Enables managers to decide how best to pursue a global strategy

<!--[if !SupportLists]-->•<!--[endif]-->Benefits for diversified companies managing a portfolio of businesses in a rapidly changing environment

<!--[if !SupportLists]-->•<!--[endif]-->Responding to the growing need to serve customers across borders

Global Matrix Design

<!--[if !SupportLists]-->•<!--[endif]-->Contains simultaneous, Intersecting differentiation bases, with many employees reporting to two or more Supervisors simultaneously.

<!--[if !SupportLists]-->•<!--[endif]-->Design is costly because It involves duplication of functions across units.

<!--[if !SupportLists]-->•<!--[endif]-->Coordination difficulties Undermine strategic focus and divert many resources to coordination Tasks.

Global Matrix Designs

<!--[if !SupportLists]-->•<!--[endif]-->Multiple, intersecting Levels of authority

<!--[if !SupportLists]-->•<!--[endif]-->Slow decision-making and Undermines accountability and performance evaluation, reducing the incentive for Executives to undertake risks

<!--[if !SupportLists]-->•<!--[endif]-->Two-dimension matrix Structures in MNEs involve interfacing geographic/ product or function / product Combinations, while three-dimension structures are based on function geographic / product differentiation

<!--[if !SupportLists]-->•<!--[endif]-->