Multinational corporations with a localization strategy in their global operations tend to _______.

Question

BlackTom AI · Accepted Answer

Question context: Multinational corporations with a localization strategy in their global operations tend to _______.
Option 1: adopt a global matrix structure and concentrate decision-making authority among senior management. This describes a more centralized, globally integrated approach typical of a global or transnational strategy, not localization. The emphasis on concentrating decisions at senior management contradicts the decentralized ethos of localization, where local markets have more autonomy.
Option 2: operate with worldwide product divisional structures and delegate decision-making authority to foreign subsidiaries. While decentralization is involved in localization, a worldwide product divisional structure focuses on product lines across borders and often centralizes product strategy, which can conflict with market-specific adaptation that localization prefers. This pairing is less aligned with a market-focused, locally responsive setup.
Option 3: operate with worldwide geographic area structures and delegate decision-making authority to foreign subsidiaries. This option mirrors localization principles: organizing by geographic areas to tailor offerings to local markets, combined with delegating authority to local subsidiaries to respond to local conditions and preferences. This structure supports responsiveness and adaptation to diverse markets.
Option 4: adopt an international division structure and centralize decision-making authority at the headquarters. An international division structure typically centralizes more functions at headquarters and treats foreign operations as extensions of the home country, which is characteristic of an export-based or centralized approach rather than localization. This does not emphasize local adaptation or autonomy.
In summary, the localization strategy prioritizes responsiveness to local markets, often through decentralized decision-making and geographic-based organization, whereas the other structures either centralize decisions or emphasize product-based or globally integrated designs that reduce local adaptation. The geographic-area, delegated-authority configuration best aligns with localization objectives and practices.

Multinational corporations with a localization strategy in their global operations tend to _______.

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