Application: International Corporate Structures Research

Application: International Corporate Structures
Corporate structures support the evolving global strategies and needs of international organizations. Various factors influence the type of corporate structure an organization chooses, including product-market characteristics, company strategy, and the degree of internationalization.
In this Application, you will consider different types of international organizations, the makeup of their corporate structures, and what may explain their choice of corporate structure.
To prepare for this assignment:
• Review Chapter 8 in Managing Internationally, focusing on the factors (external forces and company factors) influencing the structure of multinational corporations and the types of international corporate structures that exist (e.g., international, geographic, and product division structures, etc.)
• Visit the Web sites of Veolia Environnement and Proctor & Gamble, paying particular attention to the corporate structure of each of these organizations.
• Consider how the corporate structures of these organizations fit into the classification scheme of international corporate structures that you have read about.
• Then, think about what factors may have influenced the corporate structures of these organizations. For instance, a company may choose a product-division structure if it has a diverse product line and is competing with other international firms, whereas another company may choose to grant more autonomy to subsidiaries when competition is from local companies. (Fatehi, p. 409.)
• Consider what else you would need to know about these companies to determine why they have chosen these corporate structures (e.g., details about their products, competition, or company-specific factors such as corporate strategy).
The assignment (1–2 pages):
Classify the following organizations according to the classification scheme in Chapter 8 of Managing Internationally:
• Veolia Environnement
• Proctor & Gamble
Support your decisions. Then, write about the factors that may have influenced these organizations to choose these corporate structures, or explain what you would need to know to determine this. 
Support your Application Assignment with specific references to all resources used in its preparation. You are asked to provide a reference list only for those resources not included in the Learning Resources for this course.