Companies with global structures

a. outperform those with international divisions.

b. may obtain lower production costs by promoting worldwide product standardization.

c. are large companies with numerous overseas manufacturing facilities.

d. are organized on the basis of geography and not on products or processes.

e. are organized on the basis of products and do not have other organizing dimensions in a pure organization.

Question

Business

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4 January, 05:16

Companies with global structures

a. outperform those with international divisions.

b. may obtain lower production costs by promoting worldwide product standardization.

c. are large companies with numerous overseas manufacturing facilities.

d. are organized on the basis of geography and not on products or processes.

e. are organized on the basis of products and do not have other organizing dimensions in a pure organization.

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Answers (1)

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Carlee Gregory · Answer 1

Answer: Option B

Explanation: In simple words, global structure refers to the structure in which the operations of an entity are managed on the basis of geographic areas rather on the basis of product.

The companies having global structures operate their business on many different countries and the scale of their operations are usually huge. Therefore, they profit from the economies of scale and enjoy lower production cost than others.

Hence the correct option is B.