Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.

Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.



International division this is typically used when firms first expand abroad, often engaging in a home replication strategy. Geographic area structure organizes the MNE according to different geographic area so the localization strategy would be appropriate.

Global product division structure this structure supports the global standardization strategy by assigning global responsibilities to each product division.

Global matrix lightens the disadvantages associated with both geographic area and global product divisions structures which is why this structure supports the goals of the transnational strategy.


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