First Business Trip to Asia (Scenario)
Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia. Born and raised in Alberta, Jeff is a manager for a rapidly growing Calgary-based company. His current mission is to scout out potential locations in Asia and develop an international expansion strategy for his company. There are many options, including maintaining the business's head office in Canada and sending over company representatives when necessary or developing a separate company in Asia and hiring locals to manage the business. Jeff's trip will take him to Japan, South Korea, Hong Kong, Taiwan, and China. He is looking forward to learning more about the business practices and customs of each country and is not too worried about the fact that he only speaks English. Jeff has heard that English is considered the main international business language, and he anticipates that most Asians will be able to speak it.
-If Jeff's company eliminated country-designated locations and reorganized based on industry groups,it would best be described as a ________.
A)transnational organization
B)multidomestic corporation
C)global corporation
D)strategic alliance

Question

Quizplus · Accepted Answer

A transnational organization eliminates country-designated locations and instead organizes based on industry groups. This type of organization is characterized by a highly decentralized structure, with decision-making power spread across the organization's different locations. This allows for more flexibility and adaptability to local markets and customs. In contrast, a multidomestic corporation maintains separate operations in each country, while a global corporation has a highly centralized structure with decision-making power concentrated at the head office. A strategic alliance is a partnership between two or more companies for a specific project or purpose. None of these options fit Jeff's company's reorganization as described in the scenario, making transnational organization the best choice.