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Organizing for Effectiveness

            What type of organizational arrangements do you see the two firms using in coordinating their worldwide operations? .
             MNCs usually look to global structural arrangements based on international opportunities or threat. When looking at Ford, the business uses a global product Division. A global product division is a structural arrangement where the domestic divisions are given worldwide responsibility for product groups. Ford is a very strong brand in the US and with a lot of product differentiation. Ford focuses on a good car with a lot of accessories or add-ons to meet the market. A global product division provides the most benefits for Ford and its large variety and customer base. .
             Volkswagen on the other hand uses a global functional division for their worldwide operations. A global functional division is a structural arrangement that organizes based primarily on function and secondarily on product. Volkswagen is a strong brand in certain markets; it is a very specific product. Volkswagen does not have a large variety of products as well. The operations for Volkswagen focus specifically on its product function, their cars are very popular in Europe and fit Europe's market very well. The streets in Europe are small and narrow, which creates a demand for smaller and compacted cars. .
             Which of the two companies has the more modern arrangement?.
             Ford has a more modern arrangement using a global product division. Ford is able to grow its product and fit the tastes of the market. Their decisions are the way companies should go about in the global operations. MNCs are expanding and moving into different markets all the time now and running into culture differences. With their arrangement they are able to meet those differences and create their product to fit that need with a competitive advantage and operates as profit centers. Where as Volkswagen uses a different arrangement and struggles, they have the lowest market share in the US and are not able to compete with Ford and all the options it is able to provide.


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