Organizational structure in the global market provides a system and mechanism through which international companies merge their local preferences with global plans and strategies. It is a system that helps the organizations to identify how information flows inside and outside levels of marketing because the structure of international organizations reflects their policies, hierarchy, communication system, and degree of control. In international marketing, companies use structure to standardize products, direct competitive moves, and promote uniform marketing globally so that they can adjust globalization through their existence and operations in the world market. To tackle the global market, organizations decide about their structure that best matches with international marketing needs to create the most efficient system that promotes their brands and services.
International Division Structure: At the starting point of international businesses, companies deal with fewer number products and services in the market with limited knowledge and experience of the global market. Therefore, companies divide international market operations according to finance or budget, production, and marketing activities. Products are produced in the domestic market structure, and then these products are delivered in the international market according to its division.
Global Functional Structure: This type of structure involves all the functions that are needed for the companyâ€™s basic operations, such as finance, marketing, and production.
This structure is most popular for organizations that sell the same product lines in all the countries, including domestic across the globe, without any differentiation.
Global Area and Division Structure: Under this structure, roles, responsibilities, and activities are divided in different locations such as America, Asia, Africa, etc., of the world market, and managers have different duties, functional activities, and responsibilities according to the geographic location with which they deal. The divisional structure consists of different groups that deal with related products and services in the international market.
Global Product, Customer, and Matrix Structure: Global product structure is organized around different products, and each division of product gains support of all functional departments of the organization by considering the product divisions as profit centers of the organization. Global customer structure revolves around different customer groups that have different needs, wants, preferences, behaviors, and services they need by dividing customers into different customer segments such as industrial customers, non-profit organizations, and retail customers. Global matrix structure imposes two organizational structures to create dual reporting relationships that facilitate communication and balanced orientation.
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