Learning Objectives

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 localization strategy.
• Implementing international strategy.
• Implementing global strategy.
• Implementing transnational strategy.