Citicorp, Sony, and Ford are attempting to transition to which type of business organizational structure?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The correct choice is transnational because companies like Citicorp, Sony, and Ford operate in multiple countries and engage in a strategy that optimizes their operations across global markets. A transnational organizational structure allows these multinational corporations to be responsive to local markets while also leveraging their global efficiencies. This means they can balance global integration and local responsiveness, enabling them to adapt to regional differences in consumer preferences, regulations, and operational practices while maintaining a consistent overall strategy.

This approach often includes decentralized decision-making, where local subsidiaries have the autonomy to cater to their specific market needs, but they also align with the corporate objectives and standards set at the global level. This structure is critical for companies looking to compete effectively in diverse international environments, providing them with a competitive advantage over others that may operate under a more rigid organizational model.

In contrast, other options like domestic exporter, multinational, or franchiser represent different business strategies that do not encapsulate the dynamic and flexible characteristics of a transnational organization. A domestic exporter primarily focuses on domestic operations with some export activity, a multinational company operates in multiple countries but may centralize operations in its home country, and a franchiser typically licenses its brand and operational model to independent operators rather than integrating diverse local practices.

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