What is a drawback of the international division structure?

The international division structure often leads to issues with communication and influence among different levels of management within a global organization. As companies expand internationally, foreign subsidiary managers can feel marginalized or disconnected from the decision-making processes that affect their operations. This lack of a significant voice may result in decisions that are not fully informed by local market conditions and realities, ultimately harming the effectiveness of the subsidiary.

In contrast, the other mentioned aspects may not necessarily align as drawbacks within the context of an international division. For instance, the notion of increased integration with domestic firms can be seen as a benefit, as it may enhance resource sharing and alignment of strategies. Excessive specialization in domestic markets typically relates more to organizational focus rather than a structural flaw specific to international divisions. Complex global coordination is indeed a challenge, but it is more of a characteristic of international operations rather than a direct drawback unique to the division structure itself. Therefore, the specific drawback of insufficient voice for foreign managers clearly illustrates a significant issue in the international division model’s decision-making efficacy.