Seminar Forum

VL 3
The strategy which the I/R Framework suggests is independent from industry, company, and subsidiary role.
-> False (why is this false - have we talked about industry etc. differences regarding to the model?)
Yes, within the context of the three levels of the I/R Framework. The original I/R framework emphasizes that MNCs have complex sets of options and that not only industry characteristics determine firm strategies. The management literature has often mistakenly applied the framework in a deterministic manner, implying that MNCs in a particular cell of the matrix must adopt a particular strategy. In other words, firms within the same industry or subsidiaries within the same MNC may adopt different strategies.
There are four main arguments supporting regional strategies. Which is not one of them?
a. cost reasons as it is more costly to transport merchandise and communicate over longer distances
b. regional strategies and organizational structures can reduce organizational complexities
c. cognitive and emotional reasons when managers are managing in their own regions
d. diversity reasons as national idiosyncrasies and the liability of foreignness increase when crossing regional boundaries

-> Why is the correct answer not c)?
In terms of content, c corresponds to d

VL 5
Which two of the following are arguments used by critics of free trade?
a. Free trade does not take into consideration productivity differences between countries
b. Free trade may lead to unemployment
c. Free trade often ignores the effects of monopoly elements on consumer welfare
d. Free trade can only work within trading blocs
e. Free trade reduces international specialization
-> Why is c) here incorrect?
Critics of free trade typically focus on issues such as productivity differences, unemployment, and the impact on domestic industries. National anti-trust laws also restrict the formation of monopolies

VL 10
Soravas Ltd. is a hybrid organization. The organizational structure of the company has been developed to combine regional support for both global integration and local responsiveness. Nimbus is not a hierarchical organization and uses cross-functional teams to quickly adapt to the dynamic business environment. If the above information is true, which of the following can be fittingly inferred?
a that Nimbus does not favor standardization of its products
b that Nimbus is a born global
c that Nimbus has only a few SBUs
d that Nimbus has a matrix structure

-> the correct answer is d). But can a hybrid organization have a matrix organization?

Good question! If a hybrid organization is understood to be one that does not use pure organizational types such as functional, area, or divisional structures, but combines more than one dimension, then the answer is d. If matrix structures are included in the definition of a hybrid organization, then not. But do any of the other options make sense? But I agree, this is not an ideal question.