session 9

Question 1

What are the 3 types of structures in MNC

Answer 1

• Simple
• advanced
• mixed

Question 2

what are simple organisational structures

Answer 2

• firms enter a international markets by setting up subsidiary or by exporting
• export department
• plus foreign subsidiary

Question 3

what are advanced organizational structures

Answer 3

• if international operations have an exponential growth this division is created
• allows a unified approach to international operations

Question 4

types of global structure

Answer 4

• product
  -area
  -functional
  -organizes worldwide operations primarily based on the function and secondarily on the product

Question 5

adavantages og global structure

Answer 5

-emphasis on functional expertise
- tight centralized control

Question 6

disadvtanges of global structure

Answer 6

• coordination of manufacturing and marketing is difficult
• managing multiple product lines is very challenging