Sedona Inc is an American firm that manufactures high-quality handbags, duffel bags, and leather belts at its facility in Arizona.
Sedona's products have been featured in various fashion magazines and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a global functional structure?
A) Sedona has a highly decentralized system of management.
B) Sedona uses a variety of technologies for its numerous and varied product lines.
C) Sedona has only a few domestic competitors.
D) Sedona serves a narrow spectrum of customers and has a product line that uses similar technology.
Question 2
Sigma Inc is designed on the basis of the company's business activities such as production, finance, and marketing.
Foreign operations at Sigma are integrated into the activities and responsibilities of each division to achieve economies of scale and operative specialization. In other words, Sigma has a(n) ________.
A) domestic structure with foreign subsidiary
B) domestic structure with export department
C) global functional structure
D) international division structure
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