Students will most likely come to the same conclusion that Javier has, namely that the worldwide product structure seems to make the most sense. Discuss with your class how they came to this conclusion and if it is valid.

Next you will want to address the problems at the end of the case that Javier has raised in a class discussion. In this discussion encourage students to give reasons for their answers, not jus to state that they think one position is better than another.

1. Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world?

2. Would Business Managers be able to change the habits of subsidiary managers toward more global behaviors?

3. Would it be a better idea to appoint Product Director Coordinators as a first step, or jump to the Business Manager product structure right away?