Multinational Company and Its Organizational Goals Case Study

Multinational Company and Its Organizational Goals - Case Study Example Organization structure should be chosen based on its strategy (Bartol and Martin, 1998, p. 251 - 278). For example, suppose an organization is making or delivering large volumes of only a few products or services in the same geographical area, and these are very similar to each other. All the organization needs to do is coordinate the various departments, then departmentalized or functional structure works best. Departmentalization allows people to specialize in a function, and achieve economies of scale. Suppose the organization is producing or delivering several products or services in the same geographical area, and these products are very dissimilar from each other. Then, it is better to organize along product lines. This is because one product does not have anything to do with the other, there are no economies in the functional structure for this case. On the other hand, giving each product its independent departments lets the product managers serve their customers more efficien tly. Suppose the organization is producing or delivering several products or services to several different customers whose demands are very different. Then it is better to organize along customer lines so that the managers can work towards satisfying each customer according to his or her needs. The same logic goes for organizing on the basis of country or region. If the organization is making products in several places with different tastes and demands, the organization should organize along geographical lines.