How Do Multinational Corporations Structure Their Operations?
MNCs typically adopt one of several organizational structures to manage their international operations:
Centralized Structure: Decision-making is concentrated at the headquarters, ensuring consistency but potentially limiting local responsiveness. Decentralized Structure: Local subsidiaries have more autonomy, allowing for better adaptation to local markets but potentially leading to inconsistencies. Matrix Structure: Combines elements of both centralized and decentralized structures, aiming to balance global integration with local responsiveness.