Question

Do managers of companies with international activities need to approach organization design differently from their counterparts in purely domestic companies? Why or why not?

Answer 1

Answer: Yes, the managers of the companies with international activities need to approach the organizational design differently as compared to their counterparts in purely domestic companies. This is mainly because the international operations are complex and require a different type of co ordination and functioning. Mostly in the domestic operations, the companies have a similar strategy and products across the country. But in international operations the strategy and products may be based on local needs. Hence in international organizations, there may be a number of subsidiaries operating at different places with a different type of product and strategy therefore in such cases the organizational design cannot be same s in domestic operations where there is uniformity in operations. Also co ordination and controlling needs differ at international level. Thus the international organizational design needs to consider the needs of every international region while the domestic operations have uniformity.