Organization Structure for the Global Environment

1)    Organizational structures differ greatly for enterprises operating in the global environment.

2)    The kind of structure depends on a variety of factors such as degree of international orientation & commitment. A company may begin internationalising its operation by simply creating at its headquarters an international department, headed by an export manager. As the company expands its international operations, foreign subsidiaries, & later international divisions may be established in various countries, reporting to a manager in charge of global operation at headquarters or possibly the CEO.

3)    With additional growth of the international operations, several countries may be grouped into regions such as Africa, Asia, Europe, & South America,. Furthermore, the European division may then be divided into groups of countries for example the European Union [EU] Countries, Non-EU countries, & Eastern European Countries

4)    Example: Organizational Structure at Unilever

1. Unilever the Anglo-Dutch MNC has top management team consisting of the Chairperson & two Vice Chairpersons. The executive officers are grouped into:

i.      Functional Areas

1. Finance
2. Commercial
3. R&D
4. HR

ii.      Product Groups

1. Food & Drinks
2. Detergents
3. Frozen Products
4. Chemicals
5. Personal Products
6. Agribusiness
7. Edible Fats & Dairy Products

iii.      Geographic Regions

1. Europe
2. East Asia
3. North America
4. Latin America
5. Central Asia