Saturday, January 25, 2014
A Global Matrix Design
Advantages
- Bring together the functional area and product expertise
- Promote organizational flexibility
- Provide access to all advantages of other designs
Disadvantages
- Appropriate for firms with many products and unstable environments
- Employees accountable to multiple supervisors
- Decisions may take longer
Global Functional Design
Advantages
- Transference of expertise
- High centralized control
- Focused attention of key functions
Disadvantages
- Practical only when firm has few products or customers
- Coordination difficult
- Duplication of resources
Global Area Design
Disadvantages
- Firm may sacrifice cost efficiency
- Diffusion of technology is slowed
- Design unsuitable for rapid technological change
- Duplication of resources
- Coordination across area is expensive
Global Product Design
Advantages
- Managerial expertise
- Production efficiency
- Production flexibility
- Flexible response to change
- Marketing flexibility
Disadvantages
- Unnecessary duplication
- Coordination and cooperation difficult
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