As we have studied, most companies are faced with a globalization strategy, where they deal with many cultures and diversities in an attempt to sell their goods and services. In what ways can a corporation’s structure and culture be internal strengths or weaknesses? How might the strengths or weaknesses affect this company’s competitiveness in the global marketplace?
Companies facing globalization strategy
due to many cultures and many diversities
to sell their goods and services
can corporations structure and culture be internal strengths or weaknesses
will corporation strengths and weaknesses affect its companies competitiveness in global market?
Many articles and many researches have proved that most of the companies face tight globalization problems and that’s mainly because of different cultures, different diversities, cost containment, customer satisfaction and facing competition.
Any companies success is linked to the effectiveness of its organizational structure and organizational culture in supporting excellence in innovation and technology
Corporation structure is the arrangement of components and resources based on their design of the organization. Any corporation culture is the set of beliefs, values, behavioral tendencies, and expectations among employees. It’s a fact that if there is a strong alignment between a firm’s corporate structure and corporate culture, this will lead to higher chances of success.
Google having a lot of competition with big companies like Bing, ASK etc. It is the most growing organization all over the world. It is simply because it always comes up with new innovation and technology to be first and successful the global market. With having a good headquarters, manufacturing plant in the various locations, multiple technology centres and perfect research and development team.
Google’s Corporate Structure
Google has a cross-functional organizational structure, which is technically a matrix corporate structure with a considerable degree of flatness. This flatness is a defining structural feature that supports the company’s growth and competitiveness. The main characteristics of Google’s corporate structure are as follows:
1. Function-based definition
2. Product-based definition
Google’s Corporate Culture
3. Smart with emphasis on excellence
5. Supports small-company-family rapport
Some of the methods to survive in the global market are:
1. Having the knowledge of the country’s regulation and norms
2. Targeting the customers with the right services
3. By leveraging existing customer relationships
4. Securing intellectual property
5. Link up with trusted local partners
Its organizational structure helps to control on global e-commerce operations. It can design and system of interactions among members of the firm. For example, Amazon’s corporate structure determines how managers direct and influence operational activities in various business areas. As the leading online retail business in the world, Amazon.com must maintain an organizational structure that adequately supports its expanding market reach. An evolving corporate structure could even benefit Amazon as the company adds more products and gradually diversifies its business.
Features of Amazon.com’s Organizational Structure
1. Global function-based groups (most significant feature)
2. Global hierarchy
3. Geographic divisions
The following are the major function-based groups in Amazon’s organizational structure:
1. Office of the CEO
2. Business Development
3. Amazon Web Services (AWS)
5. International Consumer Business
7. Consumer Business
8. Legal and Secretariat
Global Hierarchy. Hierarchy is a traditional organizational structural characteristic. In the case of Amazon.com Inc., such characteristic is expressed in terms of a global system of vertical lines of command and authority that influence the online retail firm. For example, senior managers’ directives are applied throughout the organization, affecting all relevant offices of the company worldwide. The strategic objective of this feature of the corporate structure is to facilitate managerial control of Amazon’s entire organization.
Geographic Divisions. Amazon’s organizational structure also involves geographic divisions. In this structural characteristic, groups are based on geographic regions and related business goals. For example, Amazon.com Inc. uses geographic divisions to make it easier to manage the e-commerce business based on economic conditions of certain regions. The strategic objective in having this characteristic of the organizational structure is to enable the company to address issues or concerns relevant to each geographic region, considering differences among regional markets. Amazon has a simple approach for this structural feature, involving the following geographic divisions in its operations:
1. North America