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by Kay T.

What is and what are advantages and disadvantages of an international multidivisional organization structure

An international multidivisional organization structure is a type of organizational structure that is used by large multinational companies. In this type of structure, the company is divided into separate divisions or business units that operate independently, each with its own management team and resources. These divisions may be organized by product line, geography, or some other criteria.

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There are several advantages to this type of organizational structure:

  1. Allows for greater specialization: Each division or business unit can focus on a specific product or service, allowing for greater specialization and expertise.

  2. Improved efficiency: Because each division is responsible for its own operations, it can make decisions more quickly and respond more quickly to changes in the market.

  3. Greater local control: Divisions operating in different regions or countries have more autonomy to adapt to local market conditions and cultural differences.

There are also some potential disadvantages to this type of organizational structure:

  1. Complexity: With multiple divisions operating independently, it can be more difficult to coordinate and integrate activities across the organization.

  2. Communication challenges: With multiple divisions and management teams, there may be difficulties in communication and coordination between different parts of the organization.

  3. Potential for conflict: Divisions may have conflicting goals or priorities, which can lead to conflicts within the organization.


What is and what are advantages and disadvantages of an international functional organization structure

An international functional organization structure is a type of organizational structure that is used by multinational companies in which the organization is divided into functional departments, such as marketing, finance, and operations. Each department is responsible for a specific area of the business, and employees within the department have expertise in that particular area.

There are several advantages to this type of organizational structure:

  1. Allows for greater specialization: Employees within each functional department have a deep expertise in their area of focus, which can lead to improved efficiency and effectiveness.

  2. Improved coordination: Because employees within a functional department are all working on similar tasks and projects, it can be easier to coordinate and integrate their efforts.

  3. Reduced complexity: With a clear division of responsibilities and expertise, it can be easier for employees to understand their roles and responsibilities within the organization.

There are also some potential disadvantages to this type of organizational structure:

  1. Limited flexibility: With a functional structure, it may be more difficult to respond quickly to changes in the market or to adapt to new opportunities.

  2. Communication challenges: With a functional structure, there may be less opportunity for employees to communicate and collaborate with those in other departments, which can lead to silos within the organization.

  3. Potential for conflict: There may be conflicts between different functional departments as they compete for resources or prioritize their own goals over those of other departments.


8.3 What is and what are advantages and disadvantages of an international matrix organization structure

An international matrix organization structure is a type of organizational structure that combines elements of functional and divisional structures. In this type of structure, the organization is divided into functional departments and business units or divisions that operate independently. Employees report to both a functional manager and a divisional manager, giving them dual authority and creating a matrix of relationships within the organization.

There are several advantages to this type of organizational structure:

  1. Improved coordination: The matrix structure allows for greater communication and coordination between functional departments and business units, which can improve efficiency and effectiveness.

  2. Greater flexibility: The dual authority of the matrix structure allows for more flexibility and adaptability in response to changes in the market or new opportunities.

  3. Improved decision-making: With input from both functional experts and divisional managers, decisions can be made with a more comprehensive perspective.

There are also some potential disadvantages to this type of organizational structure:

  1. Complexity: The matrix structure can be more complex and challenging to manage, as employees have multiple reporting relationships and there may be conflicts between functional and divisional goals.

  2. Communication challenges: With multiple reporting relationships, there may be difficulties in communication and coordination within the organization.

  3. Potential for conflict: There may be conflicts between different functional departments or business units as they compete for resources or prioritize their own goals.


What are the strategy dimensions in international strategy according to Bartlett/Goshal and how did they solve the problem of integrating them I n their "transnational model"

Bartlett and Ghoshal are management scholars who developed the concept of the "transnational model" of international strategy, which aims to address the challenges of managing a multinational organization. In their model, they identified four strategy dimensions that need to be integrated in order to effectively manage a transnational organization:

  1. Localization: The extent to which the organization adapts its products, processes, and practices to fit local market conditions and cultural differences.

  2. Global integration: The extent to which the organization coordinates and integrates its activities across borders, including the sharing of resources, information, and expertise.

  3. Parenting advantage: The extent to which the organization leverages its capabilities and resources to create a competitive advantage for its subsidiaries and divisions.

  4. Innovation: The extent to which the organization fosters a culture of innovation and encourages employees to develop new ideas and solutions.

In their transnational model, Bartlett and Ghoshal argued that it is important for organizations to balance these four dimensions in order to effectively manage their operations in a globalized world. They proposed that organizations should aim for a "sweet spot" in which they are able to effectively localize their operations while also maintaining global integration, leveraging their parenting advantage, and fostering innovation.

To achieve this balance, Bartlett and Ghoshal recommended that organizations adopt a decentralized decision-making structure, in which subsidiaries and divisions have a high degree of autonomy to adapt to local market conditions while also being able to access the resources and expertise of the parent organization. They also emphasized the importance of developing a global managerial mindset, in which managers are able to think and act globally while also being able to effectively adapt to local conditions.

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Kay T.

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