All firms evolve in the same direction from relatively simple international division, through either geographic area or global product division structures, and may finally reach the more complex global matrix stage.

Question

Quizplus · Accepted Answer

Firms evolve in different ways based on their strategy, industry, scale, and competitive environment. There is no single evolutionary path for all firms' organizational structures. Some may adopt a matrix structure early on, while others may never use it, depending on what best suits their operational needs and strategic goals.

All Firms Evolve in the Same Direction from Relatively Simple