International Business Competing in the Global Market Place Study Set 4
A Worldwide Product Division Structure Tends to Be Adopted by Firms
A worldwide product division structure tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.
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In a worldwide product divisional structure,each division is a self-contained,largely autonomous entity with full responsibility for its own value creation activities.
The worldwide product division structure facilitates local responsiveness.
In a classic matrix structure,individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy)and have two bosses (a divisional boss and an area boss).
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