Final answer:
The correct option for a company with headquarters in the U.S. and operational units in other European countries is option C, a geographic structure. This type of structure allows for localization of management decisions which is beneficial for multinational corporations operating in diverse environments.
Step-by-step explanation:
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain should consider structuring its organization to respond to the multi-faceted environments of these various countries.
A geographic structure is often used by organizations that have operations in different physical locations. This type of structure allows a multinational corporation (MNC) to be responsive to local demands while also harnessing local expertise and minimizing cultural misunderstandings.
In a geographic structure, local management is empowered to make decisions that are tailored to their markets. This decentralization can be beneficial for MNCs, similar to how certain countries with unitary systems have found benefits in decentralization. For example, the UK's process of devolution has delegated specific responsibilities to regional governments in Scotland, Wales, and Northern Ireland. The geographic structure aligns well with the trend of global assembly lines where various parts of production or services are spread across multiple countries.
The correct answer to the student's question is option C: a geographic structure. This aligns with the needs of an MNC to localize its management and operations, also considering that MNCs often have a significant presence in multiple nations and are subject to the laws, taxes, customs, and culture of these various nations.