Two major variables in choosing the structure and design of an organization are the opportunities and need for (I) globalization and (2. localization. Exhibit 8-6 depicts alternative structural forms appropriate to each of these variables and to the strategic choices regarding the level and type of international involvement desired by the firm. This figure thereby updates the evolutionary stages model to reflect alternative organizational responses to more recent environments and to the anticipated competitive environments ahead. The updated model shows that, as the firm progresses from a domestic to an international company - and perhaps later to a multinational and then a global company - its managers adapt the organizational structure to accommodate their relative strategic focus on globalization versus localization, choosing a global product structure, a geographic area structure, or perhaps a matrix form. The model proposes that, as the company becomes larger, more complex
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