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?
A) Praxis Inc., one of Sedona's domestic competitors, has a flat organizational structure.
B) Sedona is a family-owned business that began as a subsidiary to Aloha enterprises.
C) Sedona has recently reorganized into a domestic structure plus foreign subsidiary.
D) Sedona conducts a large percentage of domestic sales through the company's Web site.

Question

Quizplus · Accepted Answer

As Sedona has recently reorganized into a domestic structure plus foreign subsidiary, this suggests that they have established a subsidiary to operate in a foreign market. To successfully operate in the foreign market, Sedona's subsidiary managers should have significant autonomy to adapt to local market conditions and make decisions independently.