B: Product Division: Each product has its own division that is responsible for the production, Marketing, finance and the overall strategy of that particular product Globally. • Allows the multinational company to weed out product divisions that are Not successful. • Advantages: economies of scale in R&D activities, marketing, and Production. • Disadvantages: The lack of integral networks that may increase duplication Of efforts across countries, duplicate job positions, and internal tensions.
C: Geographic areas: Each geographical region is responsible for all the products sold within its region. It Could be one region or one country (US, China) according with its importance. • All the functional units for that particular region namely finance, operations and human resources are under the geographical region responsibility. • Allows the company to evaluate the geographical markets that are most profitable. • Advantages: decision making process is faster • Disadvantages: Communication problems, internal conflicts and duplication of Costs
D: Estructuras Matriciales: Overlap between the functional and divisional structures. • Dual reporting relationships in which employees report both to the Functional manager and the divisional manager. • Involve cross-functional teams from multiple functions such as finance, Operations and marketing. • Advantage: there is more cross-functional communication that facilitates Innovation The decisions are also more localized. • Disadvantage: More confusion and power plays because of the dual line of Command.
Technological Factors: Infraestructures: It refers to the technical structures that support a society, such as Roads, water supply, sewers, power grids, airports, Telecommunications, etc.. • It facilitates the production of goods and services in countries • Types of infrastructure: – HARD: the large physical networks necessary for the functioning of a Modern industrial nation (transportation, communication, energy Networks, sanitation…) – SOFT: all the institutions which are required to maintain the economic, Health and cultural/social standards of a country