Learning Objectives To know the advantages and disadvantages of multidivisional structures. To know the issues involved in managing organization structure.

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Presentation transcript:

Learning Objectives To know the advantages and disadvantages of multidivisional structures. To know the issues involved in managing organization structure across countries .

Managing Corporate Strategy Through the Multidivisional Structure Self-contained divisions. Corporate headquarters staff. Advantages: - Improved corporate financial control. - Improved strategic control. - Growth.

Managing Corporate Strategy Through the Multidivisional Structure (cont) Problems: Establishing the divisional-corporate authority relationship. Restrictive financial controls leading to a short-run focus. Competition for resources. Transfer pricing. Duplication of functional resources.

Implementing Strategy Across Countries Implementing a localization strategy. Implementing international strategy. Implementing global strategy. Implementing transnational strategy.

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