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Organizational Structure in International Companies

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Why is organizational structure an important issue for international companies?

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The solution discusses why an organizational structure is an important issue for international companies.

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Importance of Organizational Structure for International Companies

Organizational structure is a procedure that deals with how a multinational company should be organized in order to make sure that its global business activities are able to be integrated in an efficient and effective manner. With regards to international companies, managing organizational structure and system is a critical issue in global context. A company structure and system not only needs to be consistent with each other but also with the environment context in which it is operating and the strategy used to compete (Ball, n.d.). Regarding a multinational firm, it is difficult for a firm to manage all its ...

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