Every MNC tries to drive down cost

Every MNC tries to drive down costs by getting its goods and services to the market in the most
efficient way. Good examples include auto firms such as Ford Motor and Volkwagen, which
have worldwide operations. In recent years Ford has begun expanding into Europe and VW has
begun setting up operations in Latin America. B building cars closer to the market, these
companies hope to reduce their costs and be more responsive to local needs. At the same time
this strategy requires a great deal of organization and coordination. Visit the websites of both
firms and examine the scope of their operations. The web address for Ford Motor is
www.ford.com, and for Volkwagen it is www.vw.com. Then, based on your findings answer
these 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 increases
that firm’s efficiency, or does it hamper the company’s efforts to contain costs and be more
competitive? Why