Which Organisational structure Organises a companys global operations into countries or regions?
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Question 1What do organizational structures explain? a) Who does what, where and when b) The competitive advantage of the firm c) Formal and informal reporting within the firm d) The core competencies of the firm Question 2What are the advantages of the functional structure? a) It enhances communication between top and low level managers. b) It makes communication easy among people from different functions. c) It makes communication easy among people from the same specialists. d) It enhances team spirit throughout the organization. Question 3When is the international division structure appropriate? a) When foreign operations are relatively small. b) When foreign operations are relatively high. c) When pressure to respond to local needs is high. d) When pressure to respond to local need is low. Question 4When is the geographical division appropriate? a) When economies of scale are necessary. b) When customers' taste does not vary significantly across countries. c) When cultural differences are very high. d) When customers' taste varies significantly across countries. Question 5Typically, in a global product structure: a) adaptation to local needs is high. b) marketing is the most important function. c) marketing is subservient to operations. d) operations is subservient to marketing. Question 6Barlett and Ghoshal (1989) said that the matrix structure is: a) "too simple for a complex environment". b) "speeds decision making". c) "prove all but unmanageable". d) "easy to manage". Question 7A significant weakness of the multi-domestic arrangement is: a) dual reporting system. b) duplication of activities. c) cumbersome structure. d) does not respond to local needs. Question 8In transnational firms, managers must emphasize: a) the importance of control systems. b) formal hierarchies of the firm. c) dependence between subsidiaries. d) interdependence between subsidiaries. Question 9According to the Stopford and Wells model, a high degree of diversification and high level of foreign sales should lead the multinational firm to adopt: a) Matrix structure b) International division structure c) Area structure d) Global product structure Question 10The transnational structure is: a) dominated by hierarchy. b) not dominated by hierarchy. c) designed for vertically integrated international firm. d) appropriate for export firms. What is global company structure?Global organizational structure is the way a company aims to merge local preferences with global strategy.
What is regional organizational structure?What is a geographical organisational structure? A geographical organisational structure suits businesses that have offices or units in different regions or geographical areas. This form of structure enables businesses to: have a reporting and functional system across multiple locations.
What is a global functional structure?An organization based on functions is the traditional and the most logical. International Functional structure of Multinational Enterprises, involve grouping together functionally like-activities along functional lines like marketing, R&D, production, etc and place them under specialist classes of personnel.
What organization structures are most effective for organizations operating in international markets?A matrix organization structure is preferred by international companies as it provides number of advantages. It facilitates sharing of experiences, technology, information, expertise and resources among different business units and the company.
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