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 give its subsidiary managers significant autonomy?

Question

Quizplus · Accepted Answer

The fact that Sedona has recently reorganized into a domestic structure plus foreign subsidiary suggests that they are already considering giving more autonomy to their subsidiary managers. This organizational structure indicates a willingness to decentralize decision-making and allow for local adaptation to foreign markets, which would require a higher level of autonomy for the subsidiary managers.