Companies with global structures
A) outperform those with international divisions.
B) are organized on the basis of geography and not on products or processes.
C) are large companies with numerous overseas manufacturing facilities.
D) are organized on the basis of products and do not have other organizing dimensions in a pure organization.
E) may obtain lower production costs by promoting worldwide product standardization.

Question

Quizplus · Accepted Answer

As they grow over time, most ICs move away from the use of international divisions and instead implement one of the global structures based on either global product or global geographic factors. When an IC's managers choose one of these designs for the organization's structure, they usually expect that their company will now (1) be more capable of developing competitive strategies to confront increasing global competition, (2) obtain lower production costs by promoting worldwide product standardization and manufacturing rationalization, and/or (3) enhance technology transfer and the allocation of company resources.

Companies with Global Structures