Wednesday, April 23, 2014

Spacial Differentiation

In the last byte, we looked at vertical differentiation. In today's byte, we look at spacial differentiation.

Spacial Differentiation refers to the geographic dispersion of an organizational's office, plants and personnel. Increasing the number of locations increases the complexity of organizatgional design, but this may be necessary for organizational goal achievement or organizational protection.
An implication of this suggestion would mean that organizations intending to open their branch in another company could do it by creating a subsidiary with partial ownership by the main organization while could be managed by the citizen of the country.
This could also offer the organization political and legal advantages in a country because it could be identified as a local company. Distance is as important as political and legal issues in making spacial differentiation decisions.
In the next byte, we continue the discussion on the various differentiations.

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