Multinationals have been doing business in emerging markets for years. And middle-market companies are following their lead in increasing numbers. That doesn't mean, though, that companies have figured out the organizational structure that allows them to best leverage those overseas operations. In fact, an article in the latest issue of Strategy + Business suggests they are going about it the wrong way.
The lengthy piece addresses a fundamental breakdown in corporate structure. It finds fault with the decentralized and centralized structures favored by companies "going global." According to the article, decentralization produces huge bureaucracies and unnecessarily complex portfolios, while centralizing -- or having a unified approach to all markets around the world -- could result in immense lost opportunities. S+B suggests MNCs should try a "gateway-hub structure" that will reduce tension between global integration and local responsiveness. -
Baz Hiralal
Juergen Lasowski
And the winners are...
