Question

Subject Name:Multinational Management

1)Suppose that Company A has few types of customers, and faces a stable environment. Generally, what is the most suitable organizational structure for Company A?
A.Basic Geographic Structure B.Basic Functional Structure

C.Basic Product Structure

D.Each of the 3 choices above is OK

2)Suppose that company B has five products, managers find that in recent years, the market performance of two products: printer and surveillance camera is very good, which brings more and more profits to company B, and has established a strong competitive advantage in the industry. Therefore, in this situation, which organizational structure is the most suitable for company B?
A.Basic Functional Structure
B.Basic Geographic Structure
C.Basic Product Structure
D.Each of the 3 choices above is OK

3)Companies choose a functional structure primarily for   .................... (a single word).

4)Thanks to the great progress in management science and organizational design in recent years, scholars have developed an organizational structure suitable for all multinational companies across the world.
A.True
B.False

5)Few companies adopt purely organizational structures.
A.True
B.False

Answer 1

1. Answer: - B . Basic Functional Structure - Because the company has a few types of products so it does not need a product structure to manage the operations, also the company is in a stable environment so a strategy revolving around complex geographies and a geographic structure revolving around that is not required, so since the products are few and the environment is stable the company can do good with a basic functional structure.

2. Answer C.Basic Product Structure - In this case, the company needs a basic product structure as there are two products that are acting as cash cows and bringing in the maximum revenue to the company, so there needs to be a strategy around the products and an organizational hierarchy supporting the same. Geographic and Functional strategy would not be relevant in this case as a functional strategy will be too generic and geography is not a deterrent in the product performance in this case.

3. Companies choose a functional structure primarily for jobs. This is because some companies want to classify based on the skillset they posses.

4. Thanks to the great progress in management science and organizational design in recent years, scholars have developed an organizational structure suitable for all multinational companies across the world.

Ans - False - Each company has it own unique set of challenges so there is no one size fits all approach to organizational design which can be used as a template. Each company even must evaluate and come up with an organizational design that best suits the nature of the business and the people involved.

5.5)Few companies adopt purely organizational structures. - True

Each company generally uses a tweaked or customized version of the existing organizational design which best suits its unique business needs.

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