Can you explain what is meant by Worldwide product division

Can you explain what is meant by Worldwide product division structure, Worldwide area structure, and The global matrix structure? Please provide examples.

Solution

Global product divison structure:

The global product division structure contains the division of the factors of production and amnufacturing of goods and services , value-chain activities in an proper division locations inorder to increase competitiveness.It selects the employees from different parts of globe and operates with subsidary units.As it uses geocentric approach the headquarters will be coordinating the remaining global subsidaries.Each subsidary functions as independent in formulating and implemnting its policies,startegies and competitive actions but need to get the permission of headquarters before implementing a decision.

Thus, the global product division structure functions required for goods or services in a product or service divisions.

For example: If the head quarters os located in India, and the subsiadaries are located in USA, Japan.Then each of USA and Japan will be having seperate board of directors and they deal with their subsidaries products and their marketing and finace activities.

World area structure: If the marketing and finance activities are done according to global area then it is world area structure.Generally the global product division structure contains world area segmentation such as TRAIAD which includes 80% of well-developed countries like USA,Canda; Pacific ring which includes countries like India;EASTERN TIGERS,Latin American Nations and ASEAN in which India is also a part.

Advantages of global product division structure:

1. Helps in entering into new markets

2. Can produce diversified produts and can be in safe position, so that all eggs will not be in same basket.

3. Can have better stategic focus.

4.Disadvantage of limited home market can be reduced.

5.can save from severe compettion in home market.

6. More availability of diversified skills of labour

7.can have availability of latest technology and better competent human resources

8.Enhanced speed of decisions,value of products and low interference is present.