As their overseas operations have increased in importance,larger multinationals have felt the need to
A) change from a global structure to an international division.
B) establish worldwide organizations based on product, process, national subsidiary, or customer classes at the top level.
C) eliminate their domestic operations.
D) establish worldwide organizations based on product, customer class, function, or region at the top level.
E) adopt a matrix structure to improve efficiency and reduce the complexity of global activities.

Question

Quizplus · Accepted Answer

The challenges of managing the international division effectively as the size of this division and the range of products, markets, and activities increase, can be substantial, which can result in rising inefficiency. Therefore, as the company's overseas operations increase in importance and scope, management often eliminates international divisions in favor of worldwide organizational structures based on product, region, function, or customer classes. At second, third, and still lower levels, these four characteristics-product, region, function, and customer classes-plus process, national subsidiary, and international or domestic, provide the basis for subdivisions.

As Their Overseas Operations Have Increased in Importance,larger Multinationals Have