Answer to Question 1
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Answer to Question 2
A global matrix structure is a combination of the geographic area, product, and functional structures that seeks to leverage the benefits of global strategy and responsiveness to local needs. To make it work, headquarters management should simultaneously: 1. coordinate and control international operations; 2. respond to needs in individual countries; and 3. maximize interorganizational learning and knowledge sharing among the firm's units worldwide.
By using the global matrix structure, which is closely associated with transnational strategy, managerial responsibility for each product is shared by each product unit and the particular geographic areas of the firm. Thus, firms develop a dual reporting system in which, for example, an employee in a foreign subsidiary reports to two managersthe local subsidiary general manager and the corporate product division manager. The manager working in this structure shares decision making with other managers, wherever they may be, to achieve best practice for the firm's operations worldwide.
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