Describe the different organizational structures and at what stage in the venture they might be best for an entrepreneurial enterprise?

Question

What will be an ideal response?

Answer 1

• Global area structure – Focuses each segment on an area of the world. Each area has support services and manages itself fairly autonomously. This works best for ventures with narrow product lines and similar end users.
• Global customer structure – Focuses each segment on a customer or industry, often called verticals. This form is used when customer groups are dramatically different.
• Global product structure – Focuses on the product and allows for the flexibility to adapt each product to the market that it is in. Coordination is critical between product groups to avoid duplication of effort or miscommunication with customers. This form is most often used with consumer product companies.
• Mixed global structure – Combines the above structures to focuses on multiple aspects of the transaction.
• Global matrix structure – Most often used in large entrepreneurial companies that allows for better communication and management among widely dispersed entities and product lines. Managers often have both a geographic and a product focus. Difficulty develops when there are two or more sometimes competing lines of responsibility and reporting structure. Decisions are more likely to be made in committees and group sessions, requiring additional time and management.