Week 9

Question 1

What are the benefits of Business Groups?

Answer 1

1. Possible vertical integration
2. Lower price inputs
3. Block out competition

Question 2

What are the types of institutional voids?

Answer 2

1. Capital
2. Product
3. Labour
4. Regulatory Framework

Question 3

What are the types of organizational structures?

Answer 3

1. Functional
2. Product Division
3. Geographic Division
4. Matrix

Question 4

What are some limitations of functional structures?

Answer 4

1. Functional silos
2. Missed local opportunities
3. Lower level of learning

Question 5

What are some limitations of product division structures?

Answer 5

1. Duplication which leads to inefficiencies
2. Lower level of learning
3. Local responsiveness limited to product

Question 6

What are some limitations of geographic division structures?

Answer 6

1. High level of duplication
2. Specific learning opportunities
3. Slow reaction to market disruptions

Question 7

What are some limitations of matrix structures?

Answer 7

1. Ignores existing relationships & roles
2. Based on gamesmanship
3. Lacks direction & responsibility

Question 8

What are the stages of structural development?

Answer 8

1. Home replication
2. Shift towards multi-domestic strategy
3. Global pressures for integration which leads to global strategy