Deck 17: Leadership, Organization, and Corporate Social Responsibility

Question 1

Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment. This and other values reflect Unilever's philosophy of "doing well by doing good."

Answer 1

True

Question 2

Sigismundus Lubsen, the former president and CEO of Quaker Chemical Corporation, is a good example of today's cosmopolitan executive. Born in the Netherlands and educated in Rotterdam as well as New York, Lubsen speaks Dutch, English, French, and German.

Answer 2

True

Question 3

According to Prahalad and Hamel, a core competence has all of the following characteristics except:

A) potential access to a wide variety of markets.
B) a significant contribution to perceived customer benefits.
C) it is easy for competitors to imitate.
D) benefits to customers.
E) it is difficult for competitors to imitate.

Answer 3

C

Question 4

Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except:

A) the need to have seamless communication.
B) not to depend on a small group of people.
C) impede information sharing.
D) facilitate decision making.
E) utilizing everybody's wisdom.

Question 5

Jack Welch encountered resistance at GE and said that, "The lower you are in the organization, the less clear it is that globalization is great."

Question 6

The ability to speak at least one other foreign language is one difference between managers born and raised in the United States and those born and raised elsewhere.

Question 7

The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement?

A) There are 200 million Chinese children studying English.
B) There are 24 million American children studying Chinese.
C) There are 200 million Indian children studying Chinese.
D) Chinese managers study English as much as they study Chinese.
E) There are equal numbers of American and Chinese children studying English.

Question 8

Which one of the following companies has a woman as the global chief marketing officer in the United States?

A) Apple
B) Coca-Cola
C) Ford Motor Company
D) Starbucks
E) Procter & Gamble

Question 9

Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.

Question 10

During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.

Question 11

Rebecca Van Dyck is the chief marketing officer of:

A) Facebook (United States).
B) Levi's (United States).
C) L'Oreal (France).
D) Coca-Cola (United States).
E) SAP AG (Germany).

Question 12

When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon:

A) beliefs and values.
B) values and activities.
C) speed and commitment.
D) policies and speed.
E) activities and commitment.

Question 13

Victor Luis is the chief executive officer of:

A) Nissan Motor (Japan).
B) 3M (USA).
C) Ford Motor Company (USA).
D) Pharmacia Corporation (USA).
E) Coach (USA).

Question 14

Carly Fiorina, former CEO of Hewlett-Packard, said that leadership is not about hierarchy or title or status; it's about having influence and mastering change.

Question 15

Satya Nadella is the chief executive officer of:

A) Nissan Motor (Japan).
B) PepsiCo (USA).
C) Ford Motor Company (USA).
D) Pharmacia Corporation (USA).
E) Microsoft (USA).

Question 16

Former Whirlpool CEO David Whitwam described his own staffs' resistance in the early 1990s after he had approved the acquisition of Royal Philips Electronics' European home appliance division.

Question 17

In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building:

A) their company stature.
B) physical layout and design.
C) a cadre of globally oriented managers.
D) a cadre of loyal customers.
E) access to distribution channels.

Question 18

One of the characteristics of core competence is that it is difficult for competitors to imitate.

Question 19

An important leadership task involves articulating all of the following points except:

A) beliefs.
B) values.
C) status.
D) policies.
E) activities.

Question 20

According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is not about:

A) challenging minds.
B) connecting at multiple levels.
C) capturing hearts.
D) bragging rights.
E) empowering others.

Question 21

When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except:

A) manufacturing standardization can occur.
B) products can be tailored to local market needs.
C) can result in significant economies.
D) can result in saving development costs.
E) can help in integrating operations.

Question 22

In today's dynamic global competitive environment, organizations need to develop new forms of:

A) ethnocentrism and myopia.
B) flexibility, efficiency, and responsiveness.
C) export department structure.
D) self-reference criterion.
E) geographic structure.

Question 23

Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

A) sprinklers
B) fountains
C) chimneys
D) skyscrapers
E) towers

Question 24

Which of the following does not contribute to the establishment of an international division?

A) an organizational unit should be headed by a committed senior manager
B) complexity of international operations to make its own decisions
C) recognition of the need for internal specialists
D) a lack of desire by management to scan the globe for opportunities and threats
E) assembling a staff that will take the responsibility to coordinate

Question 25

In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except:

A) to be cost effective.
B) to be customer driven.
C) to deliver best quality.
D) to deliver quickly.
E) to deliver success.

Question 26

Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?

A) Paul Krugman
B) Kenichi Ohmae
C) Tom Peters
D) Michael Porter
E) Kazuo Inamori

Question 27

Which one of the following statements is incorrect regarding matrix organizational structure?

A) A matrix organization requires fundamental changes in management behavior.
B) In a matrix organization, influence is based on technical competence and interpersonal sensitivity.
C) In a matrix organization, managers rely on higher authorities for decisions.
D) Managers in a matrix culture recognize the need to resolve issues.
E) The matrix structure is not always appropriate.

Question 28

A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n):

A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.

Question 29

Which of the following is the best organization structure for global marketing?

A) international division structure
B) matrix
C) geographic structure
D) worldwide product division structure
E) There is no single "best" structure.

Question 30

As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n):

A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.

Question 31

Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products.

A) increasing
B) declining
C) improving
D) horizontal
E) vertical

Question 32

Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate?

A) Conflicting pressures may arise from the need for product and technology.
B) No two organizations pass through similar stages.
C) No two organizations arrive at precisely the same organizational pattern.
D) Some patterns are common among different organizations.
E) Conflicting pressures may arise from the need for better organization.

Question 33

Organizations, in order to be globally successful, must be viewed as a portfolio of:

A) activities.
B) businesses.
C) competencies.
D) products.
E) policies.

Question 34

How important is the nationality of the top management position holder in global businesses?

Question 35

According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are:

A) adept at exchanging ideas, processes, and symptoms.
B) absolutely free of the "not-invented here" syndrome.
C) constantly working together to identify best global opportunities.
D) working together to solve the biggest global problems.
E) able to adapt to systems across borders.

Question 36

A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):

A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.

Question 37

The advantages that a regional management center can offer include all of the following except:

A) pan-regional decision making.
B) coordinated regional planning.
C) considerable cost saving.
D) coordinated control.
E) coordinated decision making.

Question 38

One of the potential drawbacks of a regional management center is that:

A) pan-regional coordination efforts can suffer.
B) the cost can be prohibitive.
C) the company may lose its "insider" advantage.
D) regional management may take a one-sided approach when implementing corporate objectives.
E) there is a lack of coordinated decision making.

Question 39

Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in:

A) India.
B) Mexico.
C) Japan.
D) South Korea.
E) China.

Question 40

Under the geographical and product division structures, for the company with French origins, France is:

A) the headquarter country market.
B) simply another geographic market.
C) a special unit of the European market.
D) a divisional market in Europe.
E) a product market in European Union.

Question 41

There is general agreement that the matrix design is the single best organization structure for global marketing.

Question 42

A key issue in global organization is when to achieve balance between autonomy and integration.

Question 43

When Hershey created its international division in 2005, J.P. Bilbrey, the division's senior vice president, noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States.

Question 44

Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except:

A) lower costs and quick updates.
B) facilitate problem solving.
C) unite engineering and manufacturing processes.
D) provide customer contacts.
E) enhance product consistency.

Question 45

The matrix organization is inappropriate when the market is demanding.

Question 46

The increasing importance of the European Union (EU) as a regional market has prompted a number of companies to change their organizational structures by setting up regional headquarters there.

Question 47

No single correct organizational structure exists for global marketing.

Question 48

A potential advantage of the organization on product basis is that the local input from individual country managers may not be ignored, with the result that products will be sufficiently tailored to local markets.

Question 49

By the early 2000s, Sony was faltering due to the rapid consumer acceptance of flat-panel wide-screen TV sets.

Question 50

Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis:

A) geographic knowledge.
B) product knowledge and know-how.
C) functional competence in finance, production and marketing.
D) knowledge of customer or industry and its needs.
E) All of the above are competencies.

Question 51

Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?

A) Whirlpool
B) Levi Strauss
C) Pearson PLC
D) ABB
E) Gillette

Question 52

As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to stick to the traditional organization patterns.

Question 53

The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.

Question 54

The organization design in which an employee reports to both a country manager and a functional manager is a(n):

A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.

Question 55

The key to successful matrix management is ensuring that managers are able to:

A) adopt a matrix design.
B) adhere to matrix structure.
C) maintain technical systems.
D) resolve conflicts and achieve integration.
E) preserve existing organizational culture.

Question 56

Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

Question 57

A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.

Question 58

Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing declining sales of traditional electronics products, whereas Apple and Samsung have risen to prominence in the competitive landscape once dominated by the Chinese.

Question 59

Des Moines, Iowa-based Meredith Corporation participates in international markets by means of foreign licensing agreements that are administered by a copyrights and contracts manager.

Question 60

Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?

A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center

Question 61

Which of the following does not describe the Toyota Production System (TPS)?

A) jidoka
B) "just-in-time"
C) fixed setup time
D) built-in quality
E) visualizing problems

Question 62

At Whirlpool, North American operations are organized in a matrix structure. What is the key to successful matrix management?

Question 63

What is a matrix organization? Describe giving examples.

Question 64

Primary stakeholders include all of the following except:

A) top management.
B) employees.
C) media.
D) suppliers.
E) customers.

Question 65

After establishing that the organizational matrix is appropriate for a business, what should management expect as to the integration of basic competencies on a worldwide basis?

Question 66

Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except:

A) dexterity.
B) team attitude.
C) problem solving.
D) decision making.
E) team work.

Question 67

In developing countries, globalization's opponents accuse companies of:

A) undermining local cultures.
B) placing intellectual property rights ahead of human rights.
C) promoting unhealthy diets and unsafe food technologies.
D) pursuing unsustainable consumption.
E) all of the above

Question 68

Which of the following does not belong in a list of mass production in an automobile company such as Ford?

A) changing value chains
B) use of the moving assembly line
C) organized production machinery
D) outsourcing from supplier specialists
E) making each worker productive

Question 69

McDonald's organizational design integrates the international division and geographical structures. How does the geographical and product division structure work in a global context?

Question 70

Which of the following is not the way U.S. auto mass producers operate?

A) greater labor content
B) less mechanization
C) less flexible mechanization
D) divide employees in discrete specialties
E) lack of employee teamwork

Question 71

One of the four basic competencies that a matrix design can achieve on a worldwide basis is that it helps in providing a knowledge of the customer and its needs.

Question 72

Secondary stakeholders include all of the following except:

A) media.
B) employees.
C) local community groups.
D) nongovernmental organizations.
E) general business community.

Question 73

All of the following statements regarding Starbucks are true except:

A) Starbucks offers health benefits to company employees.
B) Starbucks partners can take part in Starbucks' stock option plan.
C) Starbucks has the opportunity to be a different global company.
D) Starbucks is a profitable company.
E) Shareholders consider Starbucks' stock to be risky investment.

Question 74

As a company's international business grows, the need for having international divisions becomes evident. Explain how an international division structure works and what factors contribute to the establishment of an international division.

Question 75

Which of the following assumptions does not belong in a list of characteristics of lean production?

A) labor is more costly than machines
B) set up time can be reduced
C) minimize inventory to cut costs and wastage
D) maximize backwards integration
E) inspection to prevent defective production

Question 76

Concepts such as "assembler value chains" and "downstream value chains" are associated with:

A) lean production.
B) the matrix structure.
C) polycentric organizational designs.
D) the global marketing audit.
E) traditional assembly designs.

Question 77

Lessons that are learned from Starbucks' cooperation with NGOs include all of the following except:

A) don't wait for a crisis to collaborate.
B) recognize that collaboration involves some compromise.
C) think strategically about relationships with NGOs.
D) appreciate the value of the NGOs dependence.
E) understand that building relationships with NGOs takes time.

Question 78

What are regional management centers? What are the advantages of having such centers in global businesses?

Question 79

In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except:

A) less mechanization.
B) greater labor direct content.
C) divide employees with no overlap.
D) limited quality control.
E) employee teamwork.

Question 80

The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except:

A) dealers.
B) distributors.
C) customers.
D) suppliers.
E) managers.