What is the difference between a classical structure and a ...

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What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.
 
  What will be an ideal response?

Question 2

What are core competencies? How do firms that adopt an international strategy utilize their core competencies? How do firms that adopt a transnational strategy utilize their core competencies?
 
  What will be an ideal response?

[yasmina]

Answer to Question 1

Classical structures, like the functional, divisional, and matrix formats, rely on the hierarchy to arrange roles, responsibilities, and relationships. Neoclassical structures, like the network or virtual format, arrange work roles, responsibilities, and relationships in ways that bypass the horizontal, vertical, or external boundaries that block the development of knowledge-generating and decision-making relationships.

Answer to Question 2

A core competency is the special outlook, skill, capability, or technology that runs through the firm's operations, threading disconnected activities into an integrated value chain. The competitive imperative of necessity of leveraging core competencies throughout the value chain intensifies the importance of skillfully coordinating activities. Companies adopt an international strategy when they leverage core competencies internationally in an industry marked by low pressure for global integration and local responsiveness. The transnational strategy holds that in today's environment of interconnected consumers, industries, and markets, an MNE must configure a value chain that exploits location economies as well as coordinates value activities in order to leverage core competencies while simultaneously reconciling global and local pressures.