BUS300: Organizational Structure Choices in Global Business

This assignment delves into the concept of organizational structure, defining its role in task allocation, cooperation, and control within a business context. It emphasizes how structure influences actions and provides a framework for standard operating procedures. The assignment explores the diverse organizational architecture choices available in global business, including horizontal and vertical differentiation, as well as integrating mechanisms. Examples from Singtel are used to illustrate these concepts, such as the use of a formal functional structure and the adoption of an international strategy. The importance of flexibility, efficiency, and innovation in achieving a sustainable competitive edge is highlighted. The assignment also examines how organizations can structure themselves according to product, service, process, functions, client, and location to enhance innovation, growth, and competitiveness. The role of vertical differentiation in decision-making and the use of integrating mechanisms for coordination are also discussed.

Running Head: Structure 0
Global business in the Asian century

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Q.1What is meant by the organizational structure.
Ans1. An organizational structure is been determined as to how events such as task
allocation, cooperation, and control are engaged towards the attainment of administrative
objectives. It is stated that the organizational structure influences organizational action and
offers the framework on which standard operating routines and procedures rest. It decides
which people get to contribute to decision-making procedures to maintain their organizational
actions. It can also be regarded as the viewing perspective through which people seek their
organization along with the environment. It is quite evident that an organization can be
structured in several means based upon its aims and goals. The organization structure will
define the modes in which it performs and function. It permits the expressed distribution of
responsibilities for diverse processes and functions to different beings such as the department,
workgroup, branch, and individual (O'Neill, Beauvais & Scholl, 2016).
For example, the organizational structure used by Singtel is formal functional
structure, which involves people with similar skills together with specific jobs. The group is

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headed by Chua Sock Koong, which has the main concentration on innovative & digital
services. Organizations need to be flexible, caring, effective, efficient, and innovative to
attain a sustainable competitive edge. It is the establishment of incorporating a framework to
collaborate with the actions of subunits involving cross-functional teams. It determines in the
manner teamwork within an organization are coordinated. To attain organizational objectives
and aims, individual work needs to be managed and coordinated. It is stated that structure is a
beneficial tool in attaining coordination, as it stipulates reporting relationship, separate
actions of entities, describe formal communication channel are associated together. It is stated
that organizational structure is termed to be a matter of choice and advocacy of the generation
of diverse sort of structure. It is also proposed that it is quite based upon the behaviour of
workers & management and expression of strategies as constrained by the power distribution
and influenced by the society and environment (Lee, Kozlenkova & Palmatier, 2015).
Q.2 Determine the diverse organizational architecture choices that can be generated in global
business.
Ans2. The diverse organizational architecture choices that can be generated in international
business are-
 Horizontal differentiation- It begins when an organization decides to start allocating
specific job functions to diverse personnel despite performing all requisite tasks. The
organization can organize itself according to product, service, process, functions,
client, and location. It is split into functions, which deliberate the value creation
actions of the organization i.e. marketing, R&D, sales, and production when the
demand for management enhances. For example, Singtel maintains the product
divisional structure in order to sustain innovation, growth, and competitiveness
(Ocasio & Radoynovska, 2016). It involves-
 Product divisional structure
 International divisional structure
 Worldwide area structure
 Worldwide product divisional structure
 Global matrix structure
 Vertical differentiation- It is stated that it maintains greater integration and
coordination of operations, which assist to make effective decisions that are constant
with organizational goals. It also assists the managers to maintain enough power to

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generate radical decisions. It is stated that by decentralizing decision-making, an
organization is capable of relief top managers, which permits them to concentrate on
significant problems. Decisions made by managers might be capable to make
effective decisions depending upon knowledge and familiarity and reacting quickly to
urging concerns. For instance, Singtel has started utilizing vertical differentiation
strategy to generate capabilities in big data and mobile advertising ("Company Profile
- Singtel", 2019).
 Integrating Mechanism- These mechanisms are applied when managers find it
difficult to cooperate on their own. It is stated that the need is lowest in organization
pursuing a localization approach and enhances from global to international
standardization in order to transfer core competencies to value creation. For example,
Singtel has adopted the international strategy in order to leverage customer reach and
lead the communication industry (Brannen, Piekkari & Tietze, 2017).

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References
Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical
challenge to MNC theory and performance. In Language in international business,
26(7), 139-162
Company Profile - Singtel. (2019). Retrieved from
https://www.singtel.com/about-Us/company/company-profile
Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of
Marketing Science, 43(1), 73-99
Ocasio, W., & Radoynovska, N. (2016). Strategy and commitments to institutional logics:
Organizational heterogeneity in business models and governance. Strategic
Organization, 14(4), 287-309
O'Neill, J. W., Beauvais, L. L., & Scholl, R. W. (2016). The use of organizational culture and
structure to guide strategic behavior: An information processing perspective. Journal
of Behavioral and Applied Management, 2(2), 816-823