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A small Internet start-up in California has contracted with a web designer in the U.K., a manufacturing company in China, a customer-service provider in India, and a legal team in New York. What is the largest benefit of this organizational structure?

User Lucas Reis
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Final answer:

The Internet start-up's organizational structure benefits most from globalization, allowing economies of scale and access to a diverse array of specialized talent and cost efficiencies across the globe.

Step-by-step explanation:

The largest benefit of the organizational structure described is the ability to leverage globalization for competitive advantages. By contracting with specialists around the world, the small Internet start-up is capitalizing on the economies of scale, accessing a wider talent pool, and potentially lowering costs through more affordable labor markets. For example, the web designer in the U.K. might offer cutting-edge design skills, the manufacturing company in China could provide cost-efficient production, the customer-service provider in India may deliver excellent service at a lower cost, and the legal team in New York can offer expertise in navigating U.S. laws and regulations. This strategy of outsourcing to various global locations, facilitated by advancements in information and communications technologies, allows small companies to compete on a larger scale and offer a variety of benefits to customers.

User Leonardo Delfino
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