An MNC can adopt any of the six fundamental structures.

These are:
1.
2.
3.
4.
5.
6.

International division structure

Worldwide functional organization
Geographic area organization
Product organization
Mixed organization
Matrix organization

1. International division structure:

In the international division structure, the overseas unit is adjunct to the domestic business. It handles all
the international activities, which may be organized by function, product or geographic area. All the
overseas subsidiaries are under the authority of the international division vice-president who coordinates
entire foreign operation.

2. Worldwide functional structure:

In worldwide functional organization, each functional department or division is responsible for its
activities around the world. For example, the manufacturing department is responsible for worldwide
manufacturing activities. It plans production activities according to the needs and capabilities of the firms
manufacturing locations. The following figure showing the worldwide functional structure.

3. Geographic area structure:

According to geographic area organization, worldwide activities are organized by dividing the globe into
different geographical area. The following figure showing the Geographic area structure.

4. Product organization:
In product organization, the company is divided into the product divisions. The following figure showing
the Product organization structure.

Each product has its own vice-president or manager who is responsible for all functional departments,
such as exporting, manufacturing, marketing and finance. In this organization, the company responds to
the market conditions in terms of product lines. For example, a tractor manufacturing company can alter
the production and marketing of the agricultural machinery to cope with the increasing need in the market
segment.

5. Mixed organization:
A multinational business organization can be composed of different organizational elements. A mixed
organization can combine the structures of function, product and geographic formats. Such an
organization allows organizational flexibility, quick response to market conditions and functional
efficiency. A firm can combine product organization and international divisions, the following figure
showing the Geographic area structure.

6. Matrix organization:
A matrix structure can be organized by combining reasons, products and functions. The matrix structure
is flexible and responsive to the changing market needs. Matrix organization is often utilized by high
technology firms, turnkey firms and construction firms, including TRW,Bechtel,NEC and Siemens.