26 Jun WHAT TYPE OF ORGANIZATIONAL ARRANGEMENT(S) DO YOU SEE THE TWO FIRMS USING IN COORDINATING THEIR WORLDWIDE OPERATIONS?
Every MNC tries to drive down costs by getting its goods and services to the market in the mostefficient way. Good examples include auto firms such as Ford Motor and Volkwagen, whichhave worldwide operations. In recent years Ford has begun expanding into Europe and VW hasbegun setting up operations in Latin America. B building cars closer to the market, thesecompanies hope to reduce their costs and be more responsive to local needs. At the same timethis strategy requires a great deal of organization and coordination. Visit the websites of bothfirms and examine the scope of their operations. The web address for Ford Motor iswww.ford.com, and for Volkwagen it is www.vw.com. Then, based on your findings answerthese questions:1. What type of organizational arrangement(s) do you see the two firms using in coordinating their worldwide operations?2. Which of the two companies has the more modern arrangement? Do you think this increasesthat firm’s efficiency, or does it hamper the company’s efforts to contain costs and be morecompetitive? Why
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