You are the CEO of a European auto maker group Audi company that is planning to

Question

You are the CEO of a European auto maker group Audi company that is planning to launch a subsidiary in Detroit Michigan (USA). The size of the European company is the equivalent of a fortune 500 company in the USA. You are asked to research the market and international management issues, including finding detailed data. You should consider the broad auto industry in the USA but you will also be asked to find detailed information about the major companies that operate in that industry.

Please answer the question belows

- Select a structure for your firm And discuss why you selected that structure in your own words ( at least 3 paragraphs)

*** Please include the reference ***

Explanation / Answer

Regional Structure is the best suited structure for the company.With regards to the size of the company this structure can make the launch of the subsidiary successfull. As the launch is in a different region splitting the company into regional segments is required for the smooth and efficient functioning.This is also a variant of the functional structure, with the top executives based in your home country at the top, with the reporting segments being comprised of regional managers.

This structure ensures that your demands in different markets are being met in a localized fashion. Localization is the goal here, in all aspects.

This structure encourages employing local people. Especially hiring local management offers companies the advantage of having leaders who are completely familiar with the local business environment, culture, and legal climate. Local marketing managers understand exactly what drives local purchase behavior; local accounting managers understand the tax structure and financial reporting requirements of the region; and local staffing managers understand the management practices that are most effective in the region. Decision-making effectiveness can be enhanced by relying on the knowledge and experience of local talent. Placing a mix of local and home office leaders at the controls of a geographical unit has the advantage of blending local culture with company culture, ensuring that the company is sufficiently adaptable to local conditions, while still being true to its core business methodologies.

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