What are the advantages and disadvantages of each of the possible organizational forms that support a global strategy? Which one do you prefer? Why?


One organizational form is the functional structure, which has the advantage of having a staff managed by a person with experience in their niche which allows them to understand and help the staff work. A disadvantage to this structure is that functional areas may have difficulties working with other areas. Many times people believe they are competing with others which can be a disadvantage. Another organization form is the international division structure. One advantage of this is that it allows the team to focus on product or services in a single region. The downside to this is that it can create conflict between domestic and foreign operation. Also many people think there is not great coordination between domestic and foreign competition because they are super focused on one region. The product division structure is another type of organizational forms that has an advantage of holding people accountable for their performance and can also make coordination greater between groups to control problems. A disadvantage to this form, is that it has weak local responsiveness. Lastly, the Matrix division structure has advantages such as it meets the need of transnational strategy and has a very flexible structure due to the matrix. The disadvantage is that there can be conflict and power struggles. I personally think that matrix structure is the best because it is able to manage everything in an effective manner and in result management and control processes become a lot easier.