The topic is to answer the case questions that are in box - Coursework Example

Therefore, the statement is correct since firms are different and cannot all adopt similar strategies. Multinational firms have many departments and units, and there is a high probability of the organizations operations not being smooth. The international markets are very uncertain and hence there is a need to combine integration and differentiation in order to operate effectively even with the uncertainties. Performance ambiguity occurs when the firm cannot understand the reasons as to why a subunit or a department is experiencing difficulties.

It is necessary that a firm predict possible causes and consequences of performance ambiguity before venturing into an international or a transnational strategy. Understanding the causes and consequences leads to designing better performance strategies, and losses are minimized. The main reason for an expansion is maximization of profits.it is necessary that performance ambiguity is avoided by understanding its possible causes and consequences so that the firm does not fail to achieve its aims.

Organization architecture determines how decisions are made, how individuals are and how performance is evaluated (Miles & Snow, 2003). Transnational organizations have complex environmental demands that require flexibility in internal integrative process. There is a tendency to have conflicting domestic and foreign operations, and so each unit should operate individually. An international divisional structure should be adopted. All units will operate individually but under one overall management.

The operations of one unit will not influence the other units. Each unit should be independent and should adapt to its business environment. When each firm operates individually, controlling becomes easy since mistakes can be identified and corrected without affecting the whole organization. Shared decision-making is avoided. A firm that requires globalizing is subject to operating in diverse forms of business