Question

Which of the following organizational structures is the most extensive of those usually adopted by companies?

1) Transnational structure
2) Geographical division structure
3) Region-specific structure
4) Global product division structure
5) Matrix structure

Answer 1

The transnational structure is the most extensive organizational structure for companies, as it combines global integration with local responsiveness and addresses changes such as globalization and foreign competition.

Step-by-step explanation:

Among the organizational structures typically adopted by companies, the transnational structure is considered the most extensive. This structure allows a company to be highly localized but also globally integrated, which is essential in the age of globalization. Working like a network with a distributed but interdependent approach to production, marketing, and human resources, the transnational structure exemplifies how companies can effectively respond to the dynamic changes in technology, economics, foreign competition, and globalization mentioned in the passages provided. While other structures like the geographical division structure, region-specific structure, global product division structure, and matrix structure offer different ways to organize a business, the transnational model is most apt for large-scale, globally dispersed operations that aim to achieve both global efficiency and local responsiveness.