Please analyze the pros and cons of each of these international structure:
- Worldwide area structure
- Worldwide product divisional structure
- Global Matrix
Pros
Worldwide  Close communication with local
area customers
structure  Strong collaborative teams at
each location
 The ability to better serve local
needs and tailor their approach
to the local market
 The ability to encourage positive
competition between different
departments
Worldwide  Increases the specialization of
product work such that the number of
divisional similar products can be
structure increased
 Expansion into new markets and
production of totally new kinds
of products
 Resource leverage
Global  Flexibility Between Departments
Matrix Results in Shared Knowledge
 Open Communication
=> Better-Informed Decisions
 Cross-Collaboration
=> Employee Engagement and
Morale
Cons
 Potential conflict between
local and central
management
 Potential duplication of jobs
 Resources and functions
 Not suitable for small
organizations
 Difficult for Headquarters to
control each division
 Duplication of activities in
different divisions
 Can be very expensive
(When each division is
engaged in independent
service costs may increase)
 Overlapping Teams
=> Lack of Clarity Around
Roles and Responsibilities
 Multiple Managers
=> Potential Conflict
 More Information
=> Slower Decision-Making