In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are_________.

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Question restatement: In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are_________.

Option 1: 'product division and geographic area' — This is the correct choice. In a classic global matrix, the two axes describe product focus (product divisions) and geographic coverage (areas or regions), creating a matrix where managers must coordinate both product lines and country/region demands.

Option 2: 'target returns and sales potential' — This pair does not constitute standard axes for horizontal differentiation in the global matrix. While financial metrics like returns and potential can guide strategy, they are not the structural dimensions that define horizontal differentiation in this model.

Option 3: 'marketing strategy and sales potential' — Although marketing considerations influence operations, these are not the two fundamental axes used to differentiate units horizontally in the classic matrix. The matrix centers on product and geography rather than marketing strategy per se.

Option 4: 'hierarchy and overall strategy' — Hierarchy and overarching strategy describe governance and strategic vision, not the horizontal axes used to differentiate units. The matrix typology is about what is being managed (products vs. regions), not about organizational levels or global strategy categories.

In summary, the two horizontal differentiators in the classic global matrix are product division and geographic area, which together create the cross-cutting structure that requires balancing product-line accountability with geographic market responsibilities.

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are_________.

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