In order to achieve cost economies,Strong Manufacturing Company bases production plants for labor-intensive products in low-wage countries such as China and locates production plants that require skilled workers in high-skill countries like Japan.This illustrates the __________ model of organizational structure.

Question

Quizplus · Accepted Answer

The transnational model of organizational structure acknowledges the need for global integration and local responsiveness. It aims to optimize the allocation of resources around the world to achieve cost benefits while also being responsive to local market needs. This model involves locating different types of production plants in different countries based on the availability of skilled or low-wage workers, as seen in the given example. Therefore, the transnational model is the best fit for this scenario.

In Order to Achieve Cost Economies,Strong Manufacturing Company Bases Production