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The article has clearly brought out the advantages and disadvantages of the two kinds of structures. For the multinational enterprises to expand, they need to…
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ORGANIZATIONAL STRUCTURE affiliation Article one The article compares the international division organization structure and the geographical organization structure. The article has clearly brought out the advantages and disadvantages of the two kinds of structures. For the multinational enterprises to expand, they need to determine the he kind of organizational structure to be used. The organizational structure entails using the international division organization structure or the international geographic organization structure. The international division organizational structure is advantageous because it helps the organization to cut costs due to established distribution channels in distribution of the organization’s products. It may also boost the morale of the employee where they achieve the division’s profit and are rewarded on 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 MNE’s 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 on establishment costs and customized problems to the region thus reducing the organization’s profits. Therefore, for successful expansion of the MNE’s it is recommended to use the international Divisional organizational structure.
Article Two
The organization division organization structure creates a compressed organizational chart since all divisions report directly to the top level executives. This eases communication hence increased teamwork brought about by the focus on the employees abilities. On the other hand international Geographic organizational structure focuses on each region as a separate entity of the organization due to the fragmentation. This leads to increased costs on managing each region. It is also notable that international geographic organizational structure uses 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 its changes in the Economic cycles.
Go, F. (2012). Business strategy and organizational structure. [S.l.]: [s.n.]. Read More
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