Business Strategy and Organizational Structure - Article Example

The international division organizational structure may boost the morale of the employee when they achieve the division’s profit and are rewarded for the same. However, this structure may also create goal conflict between the organization’s goals and the geographical goals (Go, 2012). This may however be curbed through proper organizational leadership. International geographic organizational structure may also be used to establish the MNEs in new regions. This helps the geographic region enjoy independence from the headquarters management since each region is unique. This uniqueness may, however, be costly in establishment costs and customized problems to the region thus reducing the organization’s profits. Therefore, for the successful expansion of the MNEs, it is recommended to use the international Divisional organizational structure.

Article Two

The organizational division organization structure creates a compressed organizational chart since all divisions report directly to the top-level executives. This eases communication hence increasing teamwork brought about by the focus on the employee's abilities. On the other hand, the international Geographic organizational structure focuses on each region as a separate entity of the organization due to fragmentation. This leads to increased costs in managing each region. It is also notable that the international geographic organizational structure uses a contingency eldership style which is expensive to employ (Go, 2012). These two organizations structures have been exemplary detailed by the “Microsoft” and “Avon “products. In Avon products, its revenue is seen to decrease in the European markets due to changes in the Economic cycles.