Deck 6: Designing Organizations for the International Environment

Question 1

Which of the following is true of a globalization strategy?

A)It encourages product design, assembly, and marketing tailored to the specific needs of each country.
B)It can save a company money because it helps reap economy-of-scale efficiencies by standardizing product design and manufacturing.
C)It divides the world into geographic regions, with each geographic division reporting to the CEO.
D)It works best when pressure for decision making balances the interests of both product standardization and geographic localization.

Answer 1

B
Explanation:A globalization strategy can save a company money because it helps reap economy-of-scale efficiencies by standardizing product design and manufacturing,using common suppliers,introducing products around the world faster,coordinating prices,and eliminating overlapping facilities.

Question 2

Which of the following is true of a global product structure?

A)It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
B)It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions.
C)It works best when pressure for decision making balances the interests of both product standardization and geographic localization.
D)It enables a global firm to achieve aspects of both global uniformity and local diversification and responsiveness.

Answer 2

A
Explanation:In a global product structure,the product divisions take responsibility for global operations in their specific product area.It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.

Question 3

Which of the following is a difference between the domestic and international stages of international development?

A)The domestic stage is export-oriented, while the international stage is globally oriented.
B)In the domestic stage, the market potential is limited, while in the international stage, the market potential is large.
C)In the domestic stage, managers are concerned about international competitive positioning, while in the international stage, managers consider initial foreign involvement.
D)The domestic stage is structural, while the international stage is functional.

Answer 3

B
Explanation:In the first stage of international development,the domestic stage,a company is domestically oriented.In the second stage,the international stage,the company takes exports seriously and begins to think multidomestically.

Question 4

Penrose Inc.is an American corporation that provides business consulting,information technology,and outsourcing services.The company has extensive experience in a number of international markets and has established facilities in several foreign countries.Penrose Inc.is in the _____ stage of international development.

A)multinational
B)international
C)domestic
D)global

Question 5

Which of the following is true of international divisions?

A)They are typically organized along functional or product lines.
B)They move organizations from more sophisticated international operations to domestic divisions.
C)They have their own hierarchy to handle businesses in various countries.
D)They sell products and services created by international operations in domestic markets.

Question 6

Which of the following is true of a global matrix structure?

A)It coordinates sales and marketing initiatives across all geographic locations.
B)It divides the world into geographic regions, with each geographic division reporting to the CEO.
C)It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
D)It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions.

Question 7

Hill Fog is a brand of bottled water in India.Asif,the marketing manager at Hill Fog,is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale.Hill Fog is in the _____ stage of international development.

A)multinational
B)international
C)domestic
D)global

Question 8

Companies that use a _____ have typically been those with mature product lines and stable technologies.

A)global dynamic structure
B)global geographic structure
C)global matrix structure
D)global product structure

Question 9

A(n)_____ means that competition in each country is handled independently of competition in other countries.

A)globalization strategy
B)standardization strategy
C)export strategy
D)multidomestic strategy

Question 10

_____ refers to the number and variety of products and services a company offers as well as the number and variety of regions,countries,and markets it serves.

A)Integrator
B)Cooptation
C)Domain
D)Scope

Question 11

In the _____ stage of international development,a company transcends any single country.

A)domestic
B)international
C)multinational
D)global

Question 12

In the context of international development,_____ means competitive issues in each country are independent of other countries; a company deals with each country individually.

A)domestic
B)multidomestic
C)multinational
D)global

Question 13

Which of the following is true of a multidomestic strategy?

A)It allows a company to take responsibility for global operations in its specific product area.
B)It encourages product design, assembly, and marketing tailored to the specific needs of each country.
C)It delegates responsibility and decision-making authority in some areas, such as adapting products or services to meet local needs.
D)It enables an organization to achieve multinational flexibility and rapid response.

Question 14

In the _____ stage of international development,market potential is limited and is primarily in the home country.

A)domestic
B)international
C)multinational
D)global

Question 15

Which of the following is a difference between the international division and the domestic division of a company?

A)The international division uses a global matrix structure, while the domestic division does not use a global matrix structure.
B)The international division is organized according to geographic interests, while the domestic division is typically organized along functional or product lines.
C)The international division is placed above other divisions and departments within the company, while the domestic division has a status equal to other major departments or divisions within the company.
D)The international division does not have its own hierarchy to handle business, while the domestic division has its own hierarchy to handle business.

Question 16

In the _____ stage of international development,a company has extensive experience in a number of international markets and has established marketing,manufacturing,or research and development (R&D)facilities in several foreign countries.

A)domestic
B)international
C)multinational
D)global

Question 17

Which of the following structures is great for standardizing production and sales around the globe?

A)Global matrix structure
B)Global product structure
C)Global dynamic structure
D)Global geographic structure

Question 18

The _____ means that product design,manufacturing,and marketing strategy are standardized throughout the world,which is less costly than creating different products for different markets.

A)globalization strategy
B)standardization strategy
C)export strategy
D)multidomestic strategy

Question 19

_____ refers to the quality of collaboration across organizational units.

A)Contingency
B)Standardization
C)Coordination
D)Sustainability

Question 20

Quidpro,a food and beverage company based in Germany,gets most of its sales from outside its home country.Its employees are spread all over the world.The CEO is Belgian,the chairman was born in Austria,and more than half of the company's managers are non-Germans.The company has hundreds of brands and has production facilities or other operations in almost every country in the world.Quidpro is in the _____ stage of international development.

A)multinational
B)international
C)domestic
D)global

Question 21

A globalization strategy can save a company money because it helps reap economy-of-scale efficiencies.

Question 22

Which of the following is true of functional managers in successful international firms?

A)They are involved in identifying and linking an organization's expertise and resources worldwide.
B)They coordinate various functional activities located within the country to meet the problems, opportunities, needs, and trends in the local market.
C)They enable an organization to achieve multinational flexibility and rapid response.
D)They help with the transfer of ideas, trends, products, and technologies that arise in one country.

Question 23

A global matrix structure works best when coordination to share resources is less important.

Question 24

In stage two of international development,the international stage,a company takes exports seriously and begins to think multidomestically.

Question 25

Trickle-up innovation involves companies paying attention more than ever to the need for mechanisms that encourage sharing across a domestic enterprise.

Question 26

Which of the following is true of country managers?

A)They identify and link an organization's expertise and resources worldwide.
B)They enable a manufacturing organization to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large retail customer.
C)They enable an organization to achieve multinational flexibility and rapid response.
D)They reach out to various parts of the organization to resolve problems and coordinate activities across groups, divisions, or countries.

Question 27

The transnational model operates on a principle of _____.

A)flexible centralization
B)dynamic centralization
C)global standardization
D)local responsiveness

Question 28

When organizations enter the international arena,they encounter a lower level of internal and external complexity than anything experienced on the domestic front.

Question 29

In general,services are less suitable for globalization because different customs and habits often require a different approach to providing service.

Question 30

A global matrix structure is most suitable when companies need to respond to both global and local opportunities simultaneously.

Question 31

In a global product structure,the product divisions take responsibility for global operations in their specific product area.

Question 32

The _____ reflects the ultimate in both organizational complexity,with many diverse units,and organizational coordination,with mechanisms for integrating the varied parts.

A)transformative model
B)transnational model
C)global model
D)multidomestic model

Question 33

Companies that have a presence in multiple countries gain marketing power and synergy compared to the same-size firm that has a presence in fewer countries.

Question 34

The members of _____ come from different countries and meet face to face.

A)multidomestic teams
B)work teams
C)virtual global teams
D)intercultural teams

Question 35

In a _____,for multinational corporations,the geographic distances for communication are greater and coordination is more complex than in other structures.

A)global matrix structure
B)global geographic structure
C)global product structure
D)global dynamic structure

Question 36

In which of the following teams do members remain in separate locations around the world and conduct their work electronically?

A)Virtual global teams
B)Work teams
C)Multidomestic teams
D)Intercultural teams

Question 37

_____ compel units to work together for the good of their own unit as well as the overall organization.

A)Global teams
B)Cross-subsidiary teams
C)Transnational teams
D)Intercultural teams

Question 38

Which of the following is a difference between functional managers and country managers?

A)Functional managers provide integrated solutions for a large retail customer, while country managers provide integrated solutions for a small retail customer.
B)Functional managers enable an organization to achieve multinational flexibility and rapid response, while country managers identify and link an organization's expertise and resources worldwide.
C)Functional managers coordinate information and activities related to key customer accounts, while country managers provide coordination on a regional basis that might include several countries.
D)Functional managers coordinate across countries, while country managers coordinate across functions.

Question 39

_____ provide coordination on a regional basis that might include several countries.

A)Business integrators
B)Network coordinators
C)Functional managers
D)Country managers

Question 40

A global matrix structure provides a way to achieve only horizontal coordination along two dimensions.

Question 41

Plans,schedules,and formal rules and procedures can help ensure greater communication among divisions and with headquarters.

Question 42

The sharing of ideas and technological innovations across units stimulates creativity and the development of new products and services.

Question 43

Network coordinators coordinate information and activities related to key customer accounts.

Question 44

Without strong leadership,highly autonomous divisions can begin to act like coordinated parts of a global whole rather than independent companies.

Question 45

In traditional structures,various centers and subsidiaries can shape the company from the bottom up by developing creative responses.

Question 46

Discuss in detail the three primary factors that motivate companies to expand internationally.

Question 47

Why are functional structures used less frequently worldwide?

Question 48

What is a global product structure?

Question 49

Network coordinators provide coordination on a regional basis that might include several countries.

Question 50

In a transnational structure,managers have a strategic role only for their division.

Question 51

The transnational model requires that managers be flexible in determining structural needs based on the benefits to be gained.

Question 52

Describe the four stages of international development.

Question 53

In intercultural teams,members remain in separate locations around the world and conduct their work electronically.

Question 54

Country managers help with the transfer of ideas,trends,products,and technologies that arise in one country and might have significance on a broader scale.

Question 55

In a transnational company,unification and coordination are achieved primarily through formal structures and systems rather than through shared vision and values.

Question 56

What is a joint venture? Explain why companies seek joint ventures.

Question 57

The management philosophy of the transnational model is based on full divisional independence rather than interdependence.

Question 58

Global teams are cross-border work groups made up of multiskilled,multinational members whose activities span multiple countries.

Question 59

The transnational model is useful for large,multinational companies with subsidiaries in many countries that try to exploit both global and local advantages.

Question 60

In virtual global teams,members come from different countries and meet face to face.

Question 61

Discuss the benefits of inter-unit coordination.

Question 62

Discuss in detail the role of country managers.

Question 63

What are global teams? What are the two types of global teams?

Question 64

Discuss the challenges addressed by the transnational model of organization.

Question 65

List the characteristics that distinguish the transnational organization from other global organization forms such as the matrix.