$3$

Multiple Choice

$0\mathrm{.}75$ points

The new CEO of a local retail chain was trying to understand the organizational structure of its parent company. The parent company owned various businesses, including an offshore oil drilling platform, a soft drinks bottling facility, and a Human Resources $($HR$)$ consulting firm. The top management of the parent company had little knowledge about the local retail chain's business. They essentially gave the CEO of the retail chain all the autonomy he wanted, as long as they got high financial returns. The most likely

impression the retail chain's CEO formed about the parent company's structure would be $q,$ structure.

Matrix

Strategic Business Unit $($SBU$)$

Holding

Divisional

Functional

$4$

Multiple Choice $0\mathrm{.}75$ points

Firms employ a global strategy in their international expansion when they face low adaption pressures and high cost pressures. They can implement this strategy on the basis of any of the following, except:

Competitive strategy that is centralized & controlled by the corporate office

Knowledge of local customs and traditions in ekery country they operate

Standardized products leading to economies of scale

Worldwide volume that supports R&D

Standardized levels of quality worldwide