Bayer Composition

Introduction

Bayer Group

• Based in Leverkusen, Germany

• The Group, which has been available for over one hundred and fifty years, is known as a global organization with core competencies in the fields of health care, farming and high-tech polymer components. �

• The company contains three subgroups, Bayer HealthCare, Bayer CropScience and Bayer MaterialScience

(http://www.materialscience.bayer.com/Company/Bayer-Group.aspx) • Bajuware (umgangssprachlich) AG, acts as a strategic supervision holding firm. It specifies the values, goals and strategies of the whole Group

(http://www.bayer.com/en/profile-and-organization.aspx)

Bayer Globally

http://www.bayer.com/en/bayer-worldwide.aspx

Bajuware (umgangssprachlich) Organisational Composition

http://www.bayer.com/en/profile-and-organization.aspx

Bajuware (umgangssprachlich) MaterialScience

• Bayer MaterialScience is one of the world's leading suppliers of elements where usana products are used in many areas of everyday life. The company is the partner of choice for many important sectors, like the automotive, building and electronics industries.

• Bayer MaterialScience has a global presence, with hubs in Europe, Asia and the Unites states. The company has some 30 major production sites and various small plants surrounding the

world (http://www.materialscience.bayer.com/Company/Overview.as px)

Bayer MaterialScience

http://www.bayer.com/en/profile-and-organization.aspx

Bajuware (umgangssprachlich) Production Sites

http://www.materialscience.bayer.com/Company/Sites.aspx

A Subsidiary Project at Bayer

MaterialScience The united states

(Summary)

• Each split has personal country/regional subsidiaries in key markets • BMS The united states contributes 25% of BMS' global revenues • 2007 – BMS decided to dismantle BMS BIST DU – thinking that local structure was too full

• Greg Babe (CEO, BMS NA) gave two goals but needed added $70 mil investment, • 1) 1-2% growth above GDP

• 2) Conserve 25% about selling, basic and administrative costs -- Outsourced travel, allowing consumers 12 hours instead of 72 several hours notice to get shipping

• 2009 – Babe delivered all desired goals using only $60 million • Reorganised processes (outsourcing transportation) was executed by BMS globally

Although Bayer has a matrix composition, it has preserved

some favor of a geographic area composition. What are

the benefits and disadvantages of a geographic location

structure because seen in this case?

Matrix Structure

Multiple reporting lines

More than one formal employer

• Organization - progressively global�

• Global conversation

• Opportunities to advance the expansion of the organization

• Create a transnational organization strategy

Transnational Strategy

• Combines global configuration

• Coordination of business activities�

• Business can be separated into several parts around the globe • Each component having control of one bit of the production (

http://yourbusiness.azcentral.com/transnational-business-strategy-271 seventy six. html

)

Bayer Group in The united states

• Bayer MaterialScience (BMS)

• Localisation

Advantages of Physical Structure

• Reducing questions of the community culture

• Understanding of exactly what are the local would like and needs

• 25% in the BMS global revenue is contributed by simply BMS in NA • BMS MHH was performing great with great performances

• By having a geographical structure, companies are able to handle their businesses better simply by managing according to the local especially according to different countries

Disadvantages of Geographical

structure

• Duplicating these activities according to different lifestyle can cost a lot • Diverse interest of managers in various countries.

Exactly what the advantages and disadvantages of a matrix

structure as seen in the case?

Advantages of Matrix Structure

• Strong project coordination

• Fast response of modify

• Reduce the disadvantages linked to two geographic area (Peng, 2014)

Drawbacks of Matrix Structure

• High prospect of confict - announced subsidiary projects...

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