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

question 12

Multiple Choice

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.

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Definitions:

Organizations

Entities formed for a specific purpose, comprising of individuals working together under a defined structure to achieve common goals.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another.

Shared Values

Fundamental beliefs or principles that are held in common by a group, organization, or community, facilitating cohesion and cooperative action.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.