EBay started out with a U form, or functional, design. What changes in that design have already occurred as a result of the company’s growth? What kind of changes seem likely for the future?
• One of the first things we need to look at is what the u-form design is. The U-form organization (U stands for unity), also called functional design, relies almost exclusively on the functional approach to departmentalization . The U-form design is used to implement a single-product strategy. Because of the emphasis on functional activities, coordination is extremely important (edugov). Advantages: The costs of staffing each department with experts is lower than in organizations with other…show more content…
In your opinion, what changes should be made to accommodate further overseas expansion?
• As eBay expands into more foreign markets, eBay will have to further evolve and allow for a more country centralized execution of its policies and manager control. I can certainly see that in countries that have a high religious influence, such as the Muslim dominated hierarchy, religious dictates will control how eBay presents itself. In the Koran it states that you are not allowed to profit off another. This holds true in examples like banking. However in some democracies eBay is being stifled in its ability to require payments thru PayPal, as the book states an example of Australian government, curtailing eBay’s ability to require payment thru PayPal (Griffin, 2012). To further accommodate expansion into these diversified markets eBay will of course have to follow religious precepts, government regulations and allow for more targeted products. It would be unwise of eBay to allow many items that are permitted in democracies and free thinking countries to be purchased in a more conservative nation. In the conservative nations, the potential buyers can still buy off eBay USA. This type of targeted selling of their system has created eBay of Canada, eBay of USA, and eBay of Australian, eBay of Belgium and so on (whoweare). Because of eBay’s presence in over 30 countries, yet PayPal is only used in 16 countries,
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