The textbook described several ways to organize a company; cost centers, profit centers, functionally organized firms and M-form firms. The text gave an example of an M-form firm organized around functions, but the firm can be organized around each division serving a separate region. In this discussion, we will examine the benefits and potential pitfalls of organizing an international firm as an M-form firm, with each division serving a country.
Initial Post Instructions
Discuss the advantages or disadvantages a global firm might experience if it were to decentralize the decision making process through the assignment of teams according to geographic location. Address the following questions:
- What organizational changes might a firm be obliged to consider, if it makes geographically based divisions?
- Do you believe the complexity of global decision making has become easier, or more complex, in the last twenty years?
- What examples of companies successfully or not-so-successfully implementing such an organizational structure can you find?
- Are there examples where a firm would have performed better by using such an organizational architecture?