International Organizational Structures

Companies engaging in global business ideally adopt business structures/models that give a significant competitive edge over other worldwide companies. Four of the major structures/models employed globally focus on Product, Geographic Area, corporate Functions or specific Customer groups (also known as "verticals"). Research shows that specific business adopt one or more of these models based on corporate circumstances and with varying degrees of success.

Global Product Structure/Model and Example

Global Product Structure configures business divisions along product lines. Allowing each division manager to handle all aspects of production and distribution for his/her division's product, the system also makes the product division manager fully responsible for worldwide success of his/her division's product. Global Product Structure is a commonly used framework because it provides several key advantages, given here in no particular order of importance. First, by controlling all functions of production and distribution for his/her product, the division manager...
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