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AESE professor publishes article in Harvard Business Review Latin America

“Multinational dilemmas: three models for the Latin America regional structure”

“Multinational dilemmas: three models for the Latin America regional structure” is the title of the article by Prof. Adrián Cardart published in Harvard Business Review Latin America, in the January/February 2011 edition.

This article is the result of a collaborative work between the Managerial Decision Science teachers of the IAE Roberto Vassolo e Matthias Kleinhempel, and Fernando Fragueiro, professor of Managing People in Organizations and the Managerial Decision Science coordinator of AESE Prof. Adrian Caldart. The team offers a clear vision about the challenges that multinational firms that intend to innovate and reduce costs at a regional level have to face. The analysis of the more relevant trade off is, to these specialists, fundamental in deciding the business model more appropriate for each company. 

“In the last decade in Latin America several multinational companies adopted a regional organization. This type of structure usually simplifies reports  sent to the headquarters, reduces costs, generates critical mass, allows for keeping a sophisticated regional infra-structure, assures a better monitorization by high management and provides a better responsiveness to minimize and manage the risks in an unstable environment.

In the last four years we studied in detail more than 50 multinational offices in Latin America, intent on exploring their evolution patterns and consequent ability to innovate. Throughout this process, we identified some crucial elements when implementing a regional organization; we developed a framework to assess the strategic trade off associated with this process; we identified three models or organizational settings that most of these multinationals analyzed have implemented in the regional plan and learned from the studies of Cases that exemplify these three models.”