Question

1. In relation to organization structure explain the “centralized hub” (the global model) and “decentralized federation” (the multinational model).

2. Imagine company WRT changes its strategy from “multinational” to “global”. What changes will be in its organization structure? Give one example.
3. a) Explain 2 reasons for the reactions against globalization. b) How do companies respond to these forces? Name and explain 2 responses.

Answer 1

The centralized hub(the global model ) is that organization structure in which locals are asked to build connection with outside world.

Decentralized federation (multinational model ) is that wherein a parent organization have its subsidiaries in many parts of the world.

If a company WRT changes its strategy to global world,then its gonna be the centralized system.

• There will be one common country which would be responsible for the production of all products.
• No more product divison will be there according to the gegoraphical area.
• There will be no more subsidiaries.

These will be the changes in its orgaization structure.

The reasons for the reacton against globalization is:

If the structure is centralized then there is no exposure to the outside world,technology,cheap and skilled labour,many resources etc.