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some divisions are oriented toward products while others are oriented
toward market areas
-for geography, division managers are area-oriented
- for efficiencies in worldwide product coordination, division manager is
more product-oriented
-headquarters -> product division A, geographic area division 1, product
division B, geographic area division 2
matrix organization
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an organizational structure in which there is a dual structure combining
both functional specialization and business product or project
, specialization
functional structure
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consists of a chief executive officer and a limited corporate staff, with
functional line managers in dominant organizational areas such as
production, accounting, marketing, R&D, engineering, and human
resources
-implementing business-level strategies and some corporate-level
strategies (e.g., single or dominant business) with low levels of
diversification
global matrix structure
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brings together both local market and product expertise into teams that
develop and respond to the global marketplace
-promotes flexibility in designing products in response to customer needs
-authority in the hands of the managers
Competitive Form to Implement the Unrelated Diversification Strategy
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-an M-form structure characterized by complete independence among the
firm's divisions that compete for corporate resources
-want to create value through efficient internal capital allocations or by