Global Structures and Joint Ventures - Assignment Example

The paper "Global Structures and Joint Ventures" is a wonderful example of an assignment on business.1.0 International divisionSome firms set up these divisions to include international activities. This brings about the differentiation between international versus domestic activities (Aswathappa, 2010).  For example, a company may contain a number of divisions of its product to serve consumers in its country of origin but also maintain a division in the international market to manage its operations there.

Audi Company lies in this category.  2.0 Functional structureIn this structure, the organization is divided into functional areas like marketing, human resource, finance, etc.  Arguably, such grouping brings about efficiency in operation since employees are grouped based on their areas of expertise. Nevertheless, flexibility and innovation are substantially decreased (Richard, Jonathan, & Hugh, 2010). The Microsoft Company has such a structure in its organization. 3.

0   Divisional structureIn this structure, employees are divided and grouped based on a product type or service to the market thus increasing flexibility. Wendy’s restaurants utilize this structure.4.0 Geographical structuresThe hierarchy in which a firm is to operate is defined appropriately grouping people and job situations.  Basically, companies that have business subsidiaries around the globe use this type of structure (Richard, Organization theory and design, 2009).

Pepsi Company is in this category because it has units in other countries while Johnson & Johnson Company having companies located in 57 countries in the world.5.0 Question twoOne of the major drivers that compelled Toyota to enter into a joint venture with PSA was to increase the capacity in production which had already hit 300,000 cars by 2005 (Refik, 2002). PSA, on the other hand, had envisaged increased business through penetration of more areas including East and Central Europe as well as increasing its production capacity (Béla, Maarten, & Andrew, 2008).5.1  Strengths of the joint ventureThe joint venture would benefit from increased capacity and expertise brought on board by the two companies.

The joint venture would be in a position to approach more areas and generally increase the market share better distribution strategies.Any risks that may be imminent are shared by the two companies, Toyota and PSA. This would create economic viability than it would have been if each company operated singly.5.2  Weaknesses of the joint ventureFor the two companies to sail through in business a lot of research is entailed as well as analyzing the objectives. This could be a hindrance to the success of the venture as it requires time and resources.

The diversity of cultures presented by both parties coupled with different management styles hamper integration and also weakens the co-operation.To institute a viable relationship takes time alongside efforts. Coming up with a partnership of this nature can sometimes be challenging.