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Multiple Headquarters: A Sixth Stage of International Development

Read Multiple Headquarters: A Sixth Stage of International Development on page 294 in our textbook, and also read the article Borders are So 20 th Century from Business Week Magazine: http://www.businessweek.com/magazine/content/03_38/b3850063_mz063.htm
What are the advantages and disadvantages of dispersing corporate functions globally? Is there a need for a corporate headquarters in one specific location in our virtual business climate? Please justify your response by including concepts and examples from our readings and from outside sources.

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Question: Read Multiple Headquarters: A Sixth Stage of International Development on page 294 in our textbook, and also read the article Borders are So 20 th Century from Business Week Magazine: http://www.businessweek.com/magazine/content/03_38/b3850063_mz063.htm

What are the advantages and disadvantages of dispersing corporate functions globally? Is there a need for a corporate headquarters in one specific location in our virtual business climate? Please justify your response by including concepts and examples from our readings and from outside sources.

Based on the body of literature reviewed, the advantages of dispersing corporate functions globally include:
1. Dispersing of corporate functions globally allows organizations to accumulate specialized knowledge and optimize the use of superior and highly specialized skills of personnel in the global markets. Procter and Gamble for example disperses corporate functions in various geographical regions. The organization has its R&D units in three centers located in the U.S., Japan and Europe (Craig and Douglas, 1999). Each center is assigned to work on different problems associated with products and share the results to enhance the development of new products or product differentiation in the various global markets (Craig and Douglas, 1999). In a similar vein, Unilever also has three R&D centers focused on new products to be developed for its various global ...

Solution Summary

The sixth stage of international development for multiple headquarters are examined.

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