Question

Adecco, a temporary employment agency with worldwide clients, has ten regional divisions. Managers in each division handle recruiting, distribution, promotion, and client services for that region. Adecco is a service firm that focuses on marketing. Which organizational design is most likely used by Adecco?

Answer 1

Answer:

Global area design

Explanation:

When corporations use global area designs, they set up their structures around specific regions or areas of the world, e.g. regional managers for Europe, Asia, Middle East, etc.

Some disadvantages of global area design are:

1. duplication of costs
2. not suited for rapid technological change
3. cost inefficient
4. duplication of resources
5. coordination is expensive

But since each global operations center handles its own finances, marketing, R&D, etc., they can adapt to local market conditions much better than any other type of globalization strategy. Attention can be focused on important regional factors since decisions are made "locally" not by the headquarters.