A multi-domestic MNC should use what type of controls on its foreign units?
A) Management should be given considerable latitude, but be required to meet some predetermined performance targets.
B) Management should use a matrix structure allowing some limited autonomy of the foreign unit.
C) Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format.
D) Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC.
E) Management should use a divisional approach assigning goals and targets for each product-group throughout the MNC.

Question

Quizplus · Accepted Answer

A multi-domestic MNC should allow considerable latitude to its foreign units as they operate in unique local contexts. However, to ensure overall performance, predetermined performance targets should be set and monitored. This approach strikes a balance between autonomy and accountability. Matrix structures and functional and divisional approaches may be appropriate for other types of MNCs, but may not be the best fit for a multi-domestic MNC. Centralized strategic operational decision-making may also be too rigid for a multi-domestic MNC.

A Multi-Domestic MNC Should Use What Type of Controls on Its