A corporation drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________.
A) ethnocentric company
B) polycentric organization
C) borderless organization
D) global company

Question

Quizplus · Accepted Answer

By eliminating the organizational structure based on countries and adopting industry groups, the corporation is becoming borderless and breaking down national boundaries in its operations, thereby becoming a borderless organization. The other options are not applicable in this scenario. An ethnocentric company focuses on the values and norms of the parent company’s home country, while a polycentric organization adopts a decentralized approach where each subsidiary operates independently in their respective countries. A global company operates in multiple countries but maintains a centralized structure with significant control from the headquarters.

A Corporation Drops Its Organizational Structure Based on Countries and Reorganizes