INTERNATIONAL BUSINESS MANAGEMENT by Hassen Zorgani

KEY POINTS • ORGANIZATION STRUCTURE

• TYPES OF ORGANIZATION STRUCTURE IN INTERNATIONAL BUSINESS ESS

ORGANIZATION STRUCTURE

It defines how tasks are divided, grouped, and coordinated in organizations. Every organization has a structure that clarifies the roles that organizational members perform, so that everyone understands their responsibilities to the group.

TYPES OF ORGANIZATION STRUCTURE IN INTERNATIONAL

BUSINESS• Functional Structure

• Product Division Structure

• Geographic (Area) Division Structure

• Matrix Division Structure

FUNCTIONAL STRUCTURE• Specialized jobs are grouped according to traditional

business functions.

• Ideal for Co. having a narrow product line, Production Marketing sharing similar technology.

• Helps maximize economies of scale

PRODUCT DIVISION STRUCTURE

These are popular among international companies with diverse products.

Similar products are grouped under one product head e.g. Perfumes and Cosmetics, each CEO focusing on a single product segment for its global market.

Suited for a global strategy

GEOGRAPHIC (AREA) DIVISION STRUCTURE

These are used when foreign operations are large and not dominated by a single country or region. •Useful when managers can gain economies of scale on a CEO regional rather than on global basis.

MATRIX DIVISION STRUCTURE •This tries to deal with competing pressures for global integration and local responsiveness.

• Institutes overlaps among functional and divisional forms. •Gives functional, product, and geographic groups a common focus.

CONCLUSION

Every organization needs a structure in order to operate systematically. The organizational structures can be used by any organization if the structure fits into the nature the

of organization.

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