What is the Structure and Organizational Characteristics of a Multinational Company?


When talking about organizational structures of a multinational company we imagine elements that working together help the operation Of the same. And it is that a business structure implies unique characteristics that allow the expected success, and it is also a fundamental factor to have a broader concept. That is why in this article we will explain what is the structure and organizational characteristics of a multinational company? so let’s get to it.

What is a multinational company?

A multinational company is one referred that owns shares, services or branches in other countries, offering products in more than one international market. It can also refer to those companies that are in a single point, but export their items and conduct their business commercially from their headquarters.

Next, we want to show you how multinational companies are structured, and then what are their main characteristics that define a multinational company worldwide.

Structure of a multinational company

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Usually multinational companies they face two opposite variants in the outline of your organization’s structure. These variants are the need for delimitation that allows it to be qualified and competitive in local markets and also the need to include in said market.

It should be noted that the assumed structures must strike a balance among the needs mentioned in the first paragraph of this subtopic. And something that should not depart from the commercial vision and maintain the strategic line or plan so that there is the possibility of achieving success.

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Be owner of a branch abroad it is one of the most essential and basic structural models of a multinational company. Subsidiary companies are independent units with their operations, functions, finances, human resources, all of which function and work autonomously.

structural scheme of a company

However, there is a disadvantage in this type of structure, and it is the deconcentration of strategic decisions That prevents having a single approach. This is a problem that those branches in other parts of the world present due to global competition in the market.

Product Partition

In the structural scheme the product division of the multinational company evolves on the foundation of products that it has in its catalog. Each item has its own team, this partition is in charge of production, marketing, financial resources and establishing global product strategies internationally.

Functional Scheme

Tasks such as operations, market, finance, and human resources set and identify the structure of the multinational companyl, this being a different model. Specifically, the entire international production workforce works under the criteria established by the production office.

Using this business model has an advantage and that is that there is specialized knowledge within the offices and standardized processes at the macro level.

Matrix Scheme

This structure is described by dual reporting links in which human resources report to both the operational manager and the division manager. Job proposals are associated with multi-functional teams of varied facets such as finance, operations and commercial.

Those who make up these teams must notify the project manager as well as their immediate managers in finance, operations and commercial matters.

International system

The development of the matrix scheme has made it possible to achieve an international system, giving priority to horizontal communication in the commercial process. The information that is handled is collective and is formed centrally using advances in information technology. This scheme is aimed at defining knowledge banks and global information networks and generating capacities in the local response.

Characteristics of a multinational company

Briefly we show you 10 main characteristics that a multinational company has, these are fundamental factors in any company worldwide.

characteristics of a multinational company

  1. Global History.
  2. Financial decentralization.
  3. Novel market.
  4. International business cooperation.
  5. Product line growth.
  6. Macro capital movement.
  7. Global complete sourcing.
  8. Be based on a globalized regime.
  9. Define the regulations of a country.
  10. Have a common language to expand.

These are the characteristics of a multinational company, and as you can see they fulfill an important factor, the generation of job opportunities.

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