International businesses generally base their structures on certain factors.To achieve vertical differentiation, _____.
A)a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers
B)foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers
C)the global structure must allow decisions to be made in the most appropriate area of the organization
D)controls must be in place that reflect the strategies and goals of the parent firm

Question

International businesses generally base their structures on certain factors.To achieve vertical differentiation, _____.​
A)​a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers
B)​foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers
C)​the global structure must allow decisions to be made in the most appropriate area of the organization
D)​controls must be in place that reflect the strategies and goals of the parent firm

Quizplus · Accepted Answer

Vertical differentiation refers to the hierarchy of authority within an organization. To achieve this, a clear and defined hierarchy must be created that outlines the responsibilities of both domestic and foreign managers. This structure helps to prevent confusion and ensures that decisions can be made in a timely and efficient manner.

International Businesses Generally Base Their Structures on Certain Factors