Organizational structure | Case Study | Managing International Business

Running Head: MANAGING INTERNAIONAL BUSINESS
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MANAGIN INTERNATIONAL BUSINESS

MANAGING INTERNATIONAL BUSINESS
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Table of Contents
Introduction.................................................................................................................... 2
Organizational structure..................................................................................................... 2
Advantages.................................................................................................................... 4
Disadvantages................................................................................................................. 6
Centralised decision making and decentralized decision making...................................................7
Centralised decision making............................................................................................ 7
Decentralised decision making......................................................................................... 8
Answer 2....................................................................................................................... 9
a) Reasons of purchasing the Icelander hotels by the Berjaya land..........................................9
b) Possible reasons for failure........................................................................................ 9
Conclusion................................................................................................................... 11
Bibliography................................................................................................................ 12

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Introduction
Unipro incorporated is known as the manufacturer of the small jet aircraft within the USA and
deals at global level. This organization has single product strategy and set up the functional
organization structure. The board of directors is concerned regarding the dependency on the
single product as it decided to diversify the organization. The organization has implement the
diversification strategy and required to implement the appropriate organizational structure. This
discussion will include the new functional organizational structure with the benefits and
drawbacks of the functional organizational structure. It will cover the argument regarding the
centralised and decentralised decision making approach. Further discussion will cover the
reasons behind the acquisition of the Icelandair hotels by the Berjaya land. It will discuss the
possible reasons of failures.
Organizational structure
Large and small organizations both required the structure to operate and meet the organization
objectives (Winnbust 2017). The organizational structure is known as the activities like
allocation of task, coordination, and supervision which are directed to achieve the organizational
objectives. The functional structure of the organization has been theorized by the Fayol and most
common structure which is yet not be adopted by the Unipro Incorporated. In this organizational
structure activities are collected together by the use of functional criteria as distribution of the
responsibilities in the first level follows the key functions of the organization (Ashkenas, et al.,
2015).

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This model will be supportive for the Unipro Incorporated to gain the benefits from high
specialization of functions to the better exploitation of the economies of scale and build the
unique plant in place of the every process of production. It will be efficient for the organization
within the particular constraints. This will be effective for the environment, technology, and
strategies of the organization to gain the stable results and strategies will be supportive to focus
and develop the existing strategies and penetrate. This model is effective for the Unipro
Incorporated as dimension of the organization are small. It will be good enough to manage and
alleviate the negative aspect. This will give higher level of specialization and make the
organization stronger under the uncertainty. The unexpected events which occur within the
bottom line will be better to managed within the functional structure. Every issue within the
organization will be solved as delivered upward to preceding levels and system will become
faster compare to the competitors. The high specialization will lead to the sufficient coordination
within the employees and lead to organize the workers (Fan, Wong, and Zhang, 2013).
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