The global matrix structure:
A) will increase horizontal coordination, but will decrease vertical coordination.
B) works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization.
C) commonly utilizes matrix bosses as functional and product heads.
D) is usually found in firms that have reached the "international stage" of international evolution.

Question

Quizplus · Accepted Answer

The global matrix structure works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. It allows for coordination and collaboration across functional and geographical boundaries while also maintaining product consistency and local responsiveness. The other options are not entirely accurate. Choice A is incorrect because the global matrix structure actually increases both horizontal and vertical coordination. Choice C is partially correct, but it does not fully capture the complexity of the dual reporting relationships often present in a global matrix structure. Choice D is incorrect because the global matrix structure can be found in firms at various stages of their international evolution, not just when they have reached the "international stage."

The Global Matrix Structure