CTQ#5

1) Why is organizational structure an important issue for international companies?

a. The structure of an international organization involves how its domestic and

international units and activities are arranged and where formal power and
authority will be located inside the company. It helps determine how
efficiently and effectively the organization will be able to integrate and
leverage its competencies and resources within and across various units of the
enterprise, and this contribute to successful implementation of the company’s
strategy.

3) Compare and contrast geographic and product structures for international

companies.

a. An international product structure represents a return to pre-export department

times in that the domestic product division is given responsibility for global
line and staff operations. Product divisions are then responsible for the
worldwide operations, such as marketing and production, of those products
and services under their control. Geographic region structure on the other
hand, firms in which geographic regions are the primary basis for organizing
their operations put the responsibility for all activities under geographic area
managers who report directly to the chief executive officer. This kind of
organization simplifies the task of directing worldwide operations, because
every country in the world is clearly under the control of someone who is
contact with headquarters.
CTQ#5

Source

Michael, G. (2015) International Business. McGraw-Hill Education. 1st edition

(pages 263, 278)