A Global MNC Should Use What Type of Controls Over

question 9

Multiple Choice

A global MNC should use what type of controls over 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 on all its foreign units collectively.

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Definitions:

Pressure

The force applied perpendicular to the surface of an object per unit area over which that force is distributed, often measured in units such as Pascal or psi.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions, beliefs, or values simultaneously.

Internal Frustration

A psychological state that arises from internal conflict or unmet needs, leading to emotional distress and sometimes aggressive behavior.

Catastrophes

Large-scale disasters, mishaps, or failures that cause significant harm, damage, or loss of life.