Worldwide Rabobank is the leading supporter of agriculture and food with over five hundred and ninety three international offices in thirty countries. The bank leads with eighty-five percent shares in food and agriculture in Netherlands. In terms of liquidity and capital, the bank position has remained strong for the past five years. In 2012 financial year, Rabobank core tier 1 capital and Tier 1 capital increased slightly in comparison to financial year 2008.
Notionally, the structural design in a company refers to the responsibilities, formal roles and methods of reporting. Structural design influences the sources of a firm advantage in regards to knowledge management. Failure to change the structures can lead to serious undermining of strategy implementation. Good structures are not sufficient for success.
In regards to the current structure of Rabobank, it is believed to be a matrix structure. A matrix structure consists of structure that take geographical divisions and form of product or divisional and structural structures operating in cycle. The divisions of Rabobank group are different with sovereign decision being made by their own panel of directors. Branches are different in types of produce, services offered, and the market to provide these services and product. Organizational units in different branches provide services and product that deals with mortgages, asset management, equity participation, investment banking, loans and saving and leasing ( Clay 2007, pg 38). Every organizational unit has a management team that is responsible for budget in areas of their operations such as exploitative innovations and pursuing exploratory. In addition, organizational units in each branch operate in trade with different levels of competitiveness and environmental dynamism a state necessary to observe units pursue different new activities.
There are several advantages of matrix structure. They