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Essay / Research Paper Abstract
A 5 page paper that discusses four of the possible organizational structures for multinational corporations. The four are: product, region/area, functional, and customer. Examples are included. Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: ME12_PG699518.doc
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Unformatted sample text from the term paper:
A global product organizational structure is one that typically has a top-level division that is divided into product categories. Proctor & Gamble is a good example. Traditionally, it has had
three global product divisions: Global Household Care, Global Beauty, and Global Health and Well-Being. They share a number of services such as functional innovation, capability, and governance. They recently reorganized
to maximize efficiency and to eliminate overlap in tasks and functions. P&G global structure now includes Global Business Units, Market Development Organizations, Global Business Services, and Lean Corporate Functions.
Global Business Services focus on consumers, brands, and competitors around the world (P&G, 2012). Market Development Organizations are tasked with knowing consumers and retailers in each area so as to
get the right products to the right places (P&G, 2012). Global Business Services uses both P&G talent and partners to provide the best possible support services (P&G, 2012). Lean Corporate
Functions focuses on assuring functional innovation and improvement (P&G, 2012). Sometimes, a company that relies partly on a product structure will become innovative to increase their market share. Nokia did
this. It entered into a strategic partnership with Microsoft to build a "new global mobile ecosystem" (Nokia, 2011). Windows Phone will be promoted as Nokias primary smartphone. They are changing
their organizational structure with this partnership in mind (Nokia, 2011). A global area or/ geographical organizational structure is designed so that personnel from each functional unit are assembled into
units that will serve specific geographic regions. These units can be very effective when they are located in the areas the organization serves and when they employ people from that
location (Ingram, 2011). When units are organized geographically, workers and managers are able to form a bond, they are able to communicate with each other personally. Teams can
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