Professional Documents
Culture Documents
Org. Structure
Org. Structure
ORGANISATIONAL
STRUCTURE
TYPES OF INTERNATIONAL
ORGANISATIONAL STRUCTURE
Matrix Networked
Product org.
Structure structure
TRANSNATIONAL ORGANISATION
OR TRANSNATIONAL STRATEGY
INTERNATIONAL
DIVISION STRUCTURE
• Overseas unit is adjunct to parent Company
• Some parallel but less formal reporting also takes place directly to various
functional heads at the corporate headquarters.
• worldwide responsibility for all functions concerning the specific product or product
group.
• Autonomy- Considerable
GLOBAL PRODUCT DIVISION
Global Product Division Structure locates manufacturing and value
creation activities in appropriate global locations to increase responsiveness
to competitive opportunities, efficiency, quality, or innovation. Global product
divisions are responsible for Global Product Design and operate in
divisional, cluster, or holding company formats. Global Product divisions
have little in common. They are highly independent of each other.
• Lack of Synergy
decisions
GLOBAL GEOGRAPHIC
STRUCTURE
MIXED STRUCTURE – STRUCTURE
FOLLOWS STRATEGY
MATRIX STRUCTURE
- Most Complex form of org. Structure
- One design is superimposed on another existing design,
But different form.
- Structure
- Manager reports to two matrix bosses
- Matrix Managers – sharing subordinates
- TOP manager – heading all to balance.
HAVE A LOOK..
XYZ CO.
Product A, B, C
A- Functional Head
B- Functional Head
C- Functional Heads
Headquarter- Functional Executives
• Not suitable for those which have stable markets and few
products
• Becomes clumsy
• Contrary perspectives
• Slow decision making.
LET’S REVISE
CHOOSING A
STRUCTURE
Background and
Present and evolution of
Product strategy
future markets global
operations
Degree of
Capacity to centralisation
change and
decentralisation.
EMERGING
ORGANISATIONAL
STRUCTURE
The network structure is a newer type of organizational structure
viewed as less hierarchical (i.e., more “flat”), more decentralized,
and more flexible than other structures. In a network structure,
managers coordinate and control relationships that are both
internal and external to the firm.
Differentiation
Vertical Horizontal
USE OF SUBSIDIARY
BOARDS / ROLE
Advise
Respond to local Conditions
Assist in strategic Planning
ROLE OF INFORMATION
TECHNOLOGY
Bringing down the beuracratic Costs
Responsive to local needs faster
Customised and virtual products
Major Disadvantage ??
CONTROL SYSTEMS
Factors daunting International Business :
- Distance
- Diversity
- Degree of uncertainity
- Too much Independence
- Differences in approach.