Refer to Scenario 2. What is the key trade-off that is in play in the above example?

(A) The trade-off between local responsiveness and global efficiency

(B) The trade-off between local coordination and global coordination

(C) The trade-off between local responsiveness and global coordination

(D) The trade-off between local efficiency and global coordination

Explanation

The key trade-off that is in play in the above example is the local responsiveness vs global coordination trade-off.

Global coordination refers to the degree to which a company can use its products, services and methods in other countries. Local responsiveness refers to the degree to which a company must make changes and customise its products, services and methods to meet the conditions in other countries.

There is a trade-off between the two because if you focus on global coordination then your product or service may not work the same in other countries so there will be some loss in local responsiveness and vice versa.

Conclusion

This question is a part of the Weekly Quiz 3 section from the Organisational design: Know your organisation course. You can check out all the quiz answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

Leave a Comment

Share via
Copy link
Powered by Social Snap