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Learning Objectives. To know the advantages and disadvantages of multidivisional structures. To know the issues involved in managing organization structure across countries. Managing Corporate Strategy Through the Multidivisional Structure. Self-contained divisions.

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learning objectives
Learning Objectives
  • To know the advantages and disadvantages of multidivisional structures.
  • To know the issues involved in managing organization structure across countries.
managing corporate strategy through the multidivisional structure
Managing Corporate Strategy Through the Multidivisional Structure
  • Self-contained divisions.
  • Corporate headquarters staff.
  • Advantages:

- Improved corporate financial control.

- Improved strategic control.

- Growth.

managing corporate strategy through the multidivisional structure cont
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.
implementing strategy across countries
Implementing Strategy Across Countries
  • Implementing a localizationstrategy.
  • Implementing international strategy.
  • Implementing global strategy.
  • Implementing transnational strategy.