The current organizational design of Global Food Corporation consists of a divisional structure concentrating on a geographic division with three functional departments (R&D, Purchase, Finance) located on the top level (Vice Presidents) of the organizational chart.
If a company has a geographical structure, it divides its divisions according to the geographical regions, countries, or continents in which the corporation is active. This split-up depends on the level of international activity of the enterprise or/and the importance of single national markets. Less important countries in one region (i.e. countries with only a small market for the products) can be merged into one single division (e.g. Division "Africa"). At the same time, the company can create single geographic divisions for each country of a more important region (e.g. division "France", division "Italy").
In contrast to the geographic structure, the hallmark of a functional structure is a differentiation "...based on work functions (e.g.,
production, sales and marketing, administrative functions)(.)" and not on a geographic partition.
In my view, the design of Global Food corporation can be best described as a mixture between a geographic and a functional structure. However, the geographical component clearly outweighs the functional components. Therefore, I would label this design as a "geographical structure with integrated functional components".
On the lower levels (which is the structure on the national level) a product structure has been established. A product structure is a structure that organizes the company along the products it produces.
Operations in each country are autonomous. The national levels and the international headquarter seem to be only loosely connected in terms of information flows. This specially refers to information gained from consumers regarding the question whether the products match with consumer taste. Key positions on the national level are occupied by locals.
The following problems associated with this...