In larger,older organizations:
A) more decisions are delegated to the subsidiary headquarters.
B) decisions are delegated to empowered, decentralized subsidiary managers.
C) more decisions are made at headquarters of parent company.
D) decisions regarding local adaptation are made at headquarters.

Question

Quizplus · Accepted Answer

As a general rule, a large company can afford to hire more specialists, experts, and experienced executives than can a smaller one. The longer a company has been an IC, the more likely it is to have a number of experienced executives who know company policies and have worked at headquarters and in the field. Successful experience builds confidence. In most ICs, the top positions are at headquarters, and the ablest and most persistent executives will typically get positions there eventually. Thus, over time, the headquarters of a successful IC is run by experienced executives who are confident of their knowledge of the business in the home and host countries. It follows that in larger, older ICs, more decisions are made at headquarters and fewer are delegated to subsidiaries.

In Larger,older Organizations