Analysis of Organizational Structures for Global Market Expansion

This report analyzes various organizational structures suitable for international business expansion, focusing on a company's strategy to enter European and Asian markets. The report explores divisional, geographic, market-based, and product structures, evaluating their advantages and disadvantages. It examines how each structure can facilitate market entry, product focus, and operational flexibility. The analysis includes considerations for decision-making, performance measurement, and the fostering of an entrepreneurial spirit within the organization. The report highlights the importance of adapting organizational structures to specific market conditions and product lines to achieve sustainable growth and competitive advantage in the global market.

Introduction – Part 1
 The discussed organization is looking to expand their business in the
international market in Europe
 They spent two months in the market of that region
 The President of the organization are looking to expand their handheld tools
division, which are mainly crafted for the local markets globally
 The organizational structure that need to be followed by this organization for
expansion is the divisional structure based on products

Organizational Structure
 The divisional structure will help the organization to particularly focus on the
type of products or projects according to the requirement of the clients
 The targeted market in Europe
 This will help to particularly focus on a particular project or certain number of
projects, so that they can be manufactured flawlessly and can meet the
requirements of the customers
 It will help in the sustainability of the organization in those targeted market

Option for the Organization
 The organization can also follow the Geographic Organizational Structure,
which is suitable for a small manufacturing organization like this handheld
tool manufacturing organization
 It will be divided on the basis of the geographic location on which the
organization is planning to operate
 It will be controlled by a centralized headquarter
 This will help the organization to serve the different needs of different teams
of the targeted market in Europe

Introduction – Part 2
 This is for the same organization, who are planning to expand in the region of
Asia
 The organization can follow the market based divisional structure in this case
 The divisions will be based in the market places in Asia where the
organization is going to expand apart from the market places in Europe
 They can segregate their structure according to the types of customers and
their requirements of handheld told, which includes hand saw, pliers, clamps,
wrenches, screwdrivers and others

Organizational Structure
 This organizational structure will benefit the organization as it can focus on a
particular market segment, and able to satisfy the requirements of them
 This will also help the organization to become aware about the changes in the
demand towards the handheld tools of that particular market place
 The performance measurement of each of the market area can be performed
effectively and efficiently
 The managers for each of the divisions can view the amount of growth and can
structure the strategies accordingly to gain the competitive advantage over
others

Usefulness
 Flexibility is there in this form of organizational structure in responding to alterations in the
local markets where the organization is going to expand their business operations
 The organization can add or remove the division in those expanded areas according to the
performances achieved by the organization
 Implementation of the strategies can be done in a better way
 It is the best organizational structure, which is done on the same divisions, which are located in
various regions of Asia
 The coordination of activities among all the divisions are made locally and according to the
market situations and requirements

Introduction – Part 3
 The organization finds after three years that they are selling 50% of the overall
handheld tools produced in the international markets of Asia and Europe
 The organizational structure that will be followed by the organization will be
the product structure
 It will more focus on the product line of the organization, which will be
helpful as the organization already possess their division in a number of cities
 It will pace up the decision making within the organization

Advantages of the Organizational Structure
 It will help the organization to remain flexible in the business environment
 It will help the divisions who are performing badly and can invest the money and the framework of
operations in those divisions which are performing well
 It will also help the organization to focus on the particular product line which they are
manufacturing and to assess the exact requirements of the customers
 As this structure is market oriented, it will help the organization to particularly focus on all the
markets of Asia and measure their performance levels
 An entrepreneurial spirit can be encouraged or fostered within the organization which will help the
organization to evaluate the performances of their employees