After establishing that the organizational matrix is appropriate for a business, what should management expect as to the integration of basic competencies on a worldwide basis?

Question

What will be an ideal response?

Answer 1

There are four basic competencies on a worldwide basis that a manager can expect the matrix to integrate once it is established that it is appropriate for the organization. These are: 1. geographic knowledge—an understanding of the basic economic, social, cultural, political, and governmental markets and competitive dimensions of a country is essential; 2. product knowledge and know-how—product managers with a worldwide responsibility can achieve this level of competence on a global basis. Another way of achieving global product competence is simply to duplicate product management organizations in domestic and international divisions, achieving high competence in both organizational units; 3 . functional competence in such fields as finance, production, and especially, marketing—corporate functional staff with worldwide responsibility contributes toward the development of functional competence on a global basis; 4. a knowledge of the customer or industry and its needs—certain large and extremely sophisticated global companies have staff with a responsibility for serving industries on a global basis to assist the line managers in the country organizations in their efforts to penetrate specific customer markets. Under this arrangement, instead of designating national organizations or product divisions as profit centers, both are responsible for profitability.