Area Division StructureCharacteristicsThe regional and country managers have a highdegree of autonomy in how they adapt thestrategies of the home country product divisions tomeet the particular circumstances of their regionsand countries.e.g.Ford, IBM, General Motors,and Philips Electronics are examples ofMNCswidelyknownforpowerful areaheadquarters2The more local conditions influence consumerdemand,the more autonomy country managersusually get.The more important local market is, themore important thelocal manager
▲ Characteristics ① The regional and country managers have a high degree of autonomy in how they adapt the strategies of the home country product divisions to meet the particular circumstances of their regions and countries. e.g. Ford, IBM, General Motors, and Philips Electronics are examples of MNCs widely known for powerful area headquarters. ② The more local conditions influence consumer demand, the more autonomy country managers usually get. The more important local market is, the more important the local manager. Area Division Structure
Area Division StructureMultidomesticAffiliate StructureProductParentParentmarketManagementTechriologyTrade barrierSameHighautonomylevelAffiliate marketAffiliateProfitcenterproductMeasurementcriteria
Area Division Structure ▲Multidomestic Affiliate Structure