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Learning Objectives

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.

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Learning Objectives

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Presentation Transcript

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

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

  3. 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.

  4. Implementing Strategy Across Countries • Implementing a localizationstrategy. • Implementing international strategy. • Implementing global strategy. • Implementing transnational strategy.

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