Question

In: Operations Management

Class: International Business 1. Compare and contrast geographic and product structures for international companies. Thanks!

Class: International Business

1. Compare and contrast geographic and product structures for international companies.

Thanks!

Solutions

Expert Solution

Difference between Geographic and Product Structures for International Companies can be explained below:

Geographic Structures: Geographical structuring for international or global firms is basically meant to group the products of a company into various distinct segments in order to fulfill the requirements of different geographical areas or locations around the world. Geographical structure is concerned with proper logistic management and distribution of product globally. Geographical structure aims to efficiently deal with changing market conditions and to target regional customers.

Product Structures: Product structures on the other hand are those structures where products are grouped into distinct segments on the basis of their different or identical nature. Product Structure is concerned with product development and technological advancement. The basic idea of product structuring for international firms is to integrate the efforts of different expertise for specific product development and to effectively deal with technological advancements.   


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