Please review the CLOSING CASE:

Please review the CLOSING CASE: “A Subsidiary Initiative at Bayer Material Science North America” and answer the following questions.

1. While Bayer has a matrix structure, it has maintained some flavor of a geographic area structure. What are the advantages and disadvantages of a geographic area structure as seen in this case?
2. What are the advantages and disadvantages of a matrix structure as seen in this case?
3. ON ETHICS: While this is a successful case of subsidiary initiative, from a corporate or division headquarters’ standpoint, it is often difficult to ascertain whether the subsidiary is making good-faith efforts acting in the best interest of the MNE or the subsidiary managers such as Babe are primarily promoting their own self-interest, such as protecting their own jobs. How can headquarters differentiate good-faith efforts from more opportunistic maneuvers?

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