Global Business Strategy - Case Study

Running Head: Strategizing, Structuring, and Learning Around the World 1

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Strategizing, Structuring, and Learning Around the World 2

The geographical area structure is a system that is utilized when the managers allocate different

divisions around the world in the areas where an organization operates with an aim of pursuing a multi-

domestic strategy. This geographical area strategy has many advantages as well as disadvantages.

Among these advantages and disadvantages include;

Advantages

1. A solid association with the clients can be created which enables the organization to make

mark reliability. This creates an efficient and effective openness and access to the services or items at

any time.

2. It is imperative and better for the better for the local market since exclusively custom tailored

groups that can be deployed to the region and further allow the business to step into the business

market with due diligence (Peng, 2006).

3. More grounded and more proficient reams can be created in each location. This allows the

business to manage their processes much easier.

Disadvantages

1. A few of the services are duplicated with intent, thus hindering the manufacturing efficiency

of the company. This could result in conflicts between the subsidiary and the main company.

2. Because of this reason, economies of scale are lost and along these lines, a business can't

understand as much monetary development as it could've something else.

Question 2

The matrix structure can be defined as an organizational framework that is utilized in alleviating

the mismatches in a geographical area and global product division framework. It helps in grouping

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people as well as resources by use of two factors; function and product (Peng, 2006). This formation

results in a complex network vertical relationship i.e. boss and subordinate coordination reporting

perfect rapport.

Matrix structure has a lot of advantages including efficient use of resources. Also, the matrix

structure presents a communication between members from various departments can lead to a

participative decision-making process. In addition, the structure presents high motivation levels

because of members' participation on matters pertaining to decision making. However, it has its

disadvantages too, for instance, conflicts and power struggles can arise especially in cases where an

overlap occurs between authority and obligation. Competition for scarce resources can sometimes

contribute to conflicts. Much emphasis consensus can delay decision making. Further, reporting to the

two bosses can cause ambiguity and workflow conflicts ("Bayer MaterialScience buys composite

materials specialist", 2015).

Question 3

Definitely, it’s difficult for such an international or multination to speculate or figure out the

motivations of a CEO on a subsidiary organization. In the case above, it was definitely a gamble taken by

NMS when they acknowledged Babe’s proposal. Possibly, it could have cost them about $70million if

Babe had failed to deliver on their promise. On the other side, Babe’s team came up with a nice

innovative proposal with an aim of increasing productivity out of self-interest. BMS had an intention to

dismantle BMS NA (Peng, 2006). They could have translated into massive layoffs. But this is what

prompted Babe to find a solution to this problem.

In addition, its probably difficult for any multinational to distinguish between good rapport or

good faith with opportunity maneuvers. However, the only way out is to put into test the proposals and

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check for feasibility test of the deal. Even if the feasibility study would take long and costly, the losses

cannot be tantamount to if the maneuver fails.

Strategizing, Structuring, and Learning Around the World 5

References

Bayer MaterialScience buys composite materials specialist. (2015). Reinforced Plastics, 59(3), 114.

http://dx.doi.org/10.1016/j.repl.2015.03.024

Peng, M. (2006). Global strategy. Australia: Thomson/South-Western.

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