What are the advantages of the global matrix structure for the organization operating in the international market? What are the other two types of organizational structure and why have they not been replaced by the matrix structure? What are their advantages and disadvantages?

Question

What will be an ideal response?

Answer 1

The global matrix structure integrates functional and product expertise into teams so that the teams will be able to respond rapidly to needs in the global marketplace. The matrix structure promotes flexibility in designing products and in responding to the needs of customers in various countries. The matrix structure gives authority to managers who are most able to use it. Unfortunately, the reporting relationships in the matrix structure are so complex and vague that it can take longer to approve major decisions than in other organizational structures. The simpler structures survive because they are less difficult to implement than the matrix structure and are appropriate for some international strategies. The geographic-area divisional structure is appropriate for the multidomestic strategy because it facilitates managers' actions that tailor the product mix to meet the special tastes of local customers. But it is often inefficient because it cannot achieve economies of scale, and it duplicate organizational functions across divisions. The worldwide divisional structure is appropriate for the global strategy because each division focuses on a single product group and managers can learn to improve manufacturing efficiency and responsiveness. This structure has the disadvantage of duplication of functional activities, and coordination and learning across product groups is difficult.