Question

What organizational structures are used to implement the multi domestic, global, and transnational international strategies?

Answer 1

Organizational structure is a very essential aspect of an organization. An organizations mode of operation, control, authority, decision making process all depends on the organizational structure a firm possesses. When all these elements are aligned properly it results in effective implementation of firm’s strategies. Multidivisional structure is the suitable structure for implementing multi-domestic, global and transnational international strategies. Multidimensional structure incorporates high level of diversification, creates co-ordination and looks after the problems efficiently. Multidimensional structure helps the corporate officers to monitor the performance of the business more accurately which simplifies the mode of control. It helps in resource allocation so that the overall process runs smoothly and it influences employees and managers to perform well and achieve organizational objectives. With the help of diversified approach as well as active monitoring it is likelihood that the decisions taken by the managers are in favor of shareholders. In order to sustain and survive in this competitive market it is very important to have diversified approach and it is only possible through multidimensional organizational structure.