Organizational Change

Student name: Vu Thi Thanh Tam

Student ID: 182989

Course name: Organizational Research and Theory

Title: Section Exam II

Professor: Dr. Cynthia Ryder

Question I

A company uses multidomestic strategy, it applies global geographic structure. With this structure, it has components in many countries and creates identical value-creation operations. Authority assigned to directors is decentralized to control each component and directors need to apply program to react to regional climate. It is also relatively flat in the hierarchy. Normally, companies have components in many countries gather components into global area to facility product synchronization. Due to components have no connection with others, integrating function is not required.

A company uses international strategy, it applies global product group structure. With using product group structure, it makes product group headquarters arrange operations of domestic and international divisions for each product group. Product group directors will methodize value-creation on a globalization. Authority is centralized for essence competency and decentralized for others. Hierarchy is relatively tall.

A company uses global strategy, it applies global product group structure. This strategy apportions manufacturing and value chain operations to global place in order to raise effectiveness and excellence. By this way, it can figure out issues of synchronization and integration. In addition, it needs to discover a structure which reduces bureaucratic expenditures connected with materials relocated between headquarters and divisions and give centralized authority. The product group structure makes director determine what global strategy to chase. Similar to international strategy, hierarchy is relatively tall.

A company uses transnational strategy, it applies global matrix structure to reduce global expenditures and distinguish operations via high-grade innovation and reaction...