Author Question: What role does a firm's strategy play in determining organizational structure? Why are boundaries ... (Read 114 times)

Yi-Chen · **on:** Jul 7, 2018

What role does a firm's strategy play in determining organizational structure? Why are boundaries problematic for firms with international strategies?

What will be an ideal response?

Question 2

Which of the following questions would be most important for government officials to evaluate when considering the controversy over the cotton quota?

A) What would be the short-term effect of additional agricultural quotas?
B) What other nations utilize agricultural quotas and what are the effects?
C) What would be the cost of subsidizing the fabric manufacturing facility?
D) What will be the long-term effect of the cotton quota on the Zanzi economy?

ally · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Firms engaging different strategies build different organizations. Firms engaging international, multidomestic, global, or transnational strategies tailor their structure, systems, and cultures to their respective demands. Sophisticated international strategies require improving collaboration, sharing, and engagement across an organization. The boundaries of vertically and horizontally differentiated structures, by hampering these activities, constrain performance. The intrinsic boundaries of classical structures impede knowledge flows and interrupt coordination. Resolving those rests upon removing the boundaries between vertical ranks and roles, between horizontal units in different functions, products, and areas, and between the firm and its suppliers, distributors, joint-venture partners, strategic allies, and customers.

Answer to Question 2

D