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Global Area Structure

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1. Looking at Figures 7-3 (p. 254 of your text), select one of the organizational structures contained in the graph, and explain why it is located where it is relative to foreign product diversity and foreign sales as a percentage of total sales.

2. Looking at Exhibit 8.5 (p. 304 of your text), explain where the company where you work, or one where you worked recently, would be classified? How should this company manage its knowledge life cycle to better integrate its knowledge management with its strategic processes?

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The global area structure is located where it is relative to foreign product diversity, due to the fact that the global area structure has a very little role in the innovative techniques that are required in order to diversify a product. The global area structure is basically an organizational structure that facilitates the increase in the marketing and sales of products within the global arena. The global area structure is a structure that is centered around identifying areas in which an organization can increase its foreign sales, and develop a methodology by which to facilitate the increase in the sales in a highly efficient and effective manner. The global area structure uses the expertise of marketing individuals to conduct detailed analysis of markets within given areas of the globe, to make the determination as to the needs and wants of the population within that area, and to make the determination as to whether the organization can provide these needs and wants in a manner that will be profitable for the organization. In conducting this analysis, these individuals will ascertain the GDP of a given nation, the mean income of the population of ...

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