Evaluating Organizational Structures for Global Operations PPT

This PPT slide, part of the 61-slide Enterprise Organizational Assessment Toolkit PowerPoint presentation, presents an evaluation of organizational structures across 4 distinct models: International, Multinational/Global, Transnational, and a section for advantages, disadvantages, and best use cases for each structure.

The International structure is characterized by a focus on sales and operations, emphasizing gradual market entry and efficiency in manufacturing. The advantages noted include the ability to achieve manufacturing efficiencies while expanding international sales incrementally. However, it also highlights challenges such as high shipping costs and limited market knowledge.

The Multinational/Global structure shifts focus towards country-specific operations, allowing for profit and loss accountability at the local level. This model minimizes the need for corporate staff and facilitates alliances, which can be beneficial. Yet, it may lead to redundant operations and limited cross-country learning, which can hinder overall growth.

The Transnational structure integrates global operations to leverage the best business conditions worldwide. This model is complex and typically suited for larger firms, such as Fortune 500 companies. It requires a global perspective from senior executives, which can complicate management, but also offers significant strategic advantages.

Each structure has its unique advantages and disadvantages, making it essential for organizations to assess their specific needs and capabilities. The "Best Use" section provides guidance on when to implement each structure, from initial foreign market entry for the International model to mature international expansion for the Multinational/Global approach. This slide serves as a valuable resource for executives considering how to structure their organizations for optimal performance in global markets.

This slide is part of the Enterprise Organizational Assessment Toolkit PowerPoint presentation.

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Organizational Design Organizational Structure Profit and Loss Market Entry Sales Manufacturing

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