C H A P T E R 1 0 T he O r g a n i z at i o n o f Glo b al B u s i n e s s
Ian Dagnall/Alamy
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A Hilton Hotel. The first hotel to bear the Hilton name was the Dallas Hilton, a high-rise that opened in Dallas, Texas in 1925.
Exhibit 10.9 illustrates a product structure for a global business with three geographical region-divisions. Cementos Mexicanos S.A.B. de C.V. (CEMEX) is an example of a global business with a geographical region structure. Its three divisions include: 1) North America; 2) South America and the Caribbean; and 3) Europe, Asia, and the Middle East. Each regional manager supervises and is responsible for all the business activities undergoing in the countries comprising the region. These activities include production, distribution, marketing and sale of cement, ready-mix concrete, and aggregates. CEMEX’s corporate headquarters evaluates the results and performance of each geographical region, and allocates economic resources according to this data. CEMEX is the world’s largest building materials supplier and third largest cement producer. The company has a presence in more than 50 countries.
10-4c Hybrid Structure hybrid structure
a combination of different organizational structures
As global businesses grow in reach and depth, sometimes they adopt a combination of organizational structures that best fit their needs. This combination of organizational structures is called a hybrid structure. Global businesses with hybrid structures are said to be organized by more than one dimension at the top level. A global business with a hybrid structure is presented in Exhibit 10.10.
E X H I B I T 1 0 . 9 A G E O G R A P H I C A L R E G I O N S T R U C T U R E F O R A G L O B A L BUSINESS WITH THREE DIVISIONS Chief Executive Officer
Americas Division
Europe Division
Asia Division
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