BU491 Chapter Notes - Chapter 4: Multidimensional Organization

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14 Apr 2015
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Two variables to capture the strategic and administrative complexity most companies faced as they expanded abroad: the number of products sold internationally and the importance of international sales to the company. In the early stages of foreign expansion, mnes typically managed their overseas operations through an international l division. When both foreign sales and foreign product diversity were high, companies tended to organize around some form of global matrix. In theory the solution should have worked, having frontline managers report simultaneously to different organizational groups should have enabled companies to resolve the conflict built into. By forcing all issues through the dual chains of command, the matrix amplified the differences in perspectives and interests so that even a minor difference could become the subject of heated disagreement and debate. The basic problem underlying a company"s search for a structural fit was that it focused on only one organizational variable formal structure.

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