International Division Organization Structures and Geographic Area Organization Structure - Coursework Example

Companies may choose divisional structuring of their business because expansion under this option is relatively straightforward. A new division is thus getting the creation, and then gets nested within the already existing management structure. It has a comparison to adding a room onto an existing building. The other aspects of the company’s operation are left mostly unaffected by the change of adding a different section or department (Morgan, 2006).

The newly appointed division heads must get personal with their employees for the growth of the organization. International organization structure can also have divisions, according to the geographical location of operations. Structuring of the organization by geographical area is another form of global organizational structure. In dividing according to the geographical area, the management usually appoints regional directors in different regions of a country or even a continent. Each of the local managers has responsibility for all the operational decisions within a particular geographical area.

The type of strategy is often when a business first moves from only operating domestically to international operations (Linstead, Fulop & Lilley, 2009). Large national or multi-national organizations face significant and substantial communication and logistical challenges. It usually makes regional or geographical area structure necessary for effective decision making and control of the business