Deck 7: Designing Organizations for the International Environment

Question 1

The globalization strategy means that product design, manufacturing and marketing strategy are standardized throughout the world.

Answer 1

True

Question 2

refers to the quality of collaboration across organizational units.

A) Integration
B) Power distance
C) Uncertainty avoidance
D) Standardization
E) Multidomestic standardization

Answer 2

A.

Question 3

Economies of scale means achieving higher costs through small volume production.

Answer 3

False

Question 4

is best identified as dividing the world into geographic regions, with each geographic region reporting to the CEO and each division has full control of functional activities within its region.

A) Multidomestic strategy
B) Global product structure
C) Uncertainty avoidance
D) Global matrix structure
E) Global geographic structure

Question 5

Which of the following is an inappropriate fit according to the Model to Fit Organization Structure to International Advantages?

A) Globalization strategy − Global product structure
B) Both globalization and multidomestic strategy − Global matrix structure
C) Multidomestic strategy − Global geographic structure
D) Export strategy − International division
E) Multidomestic strategy − International division

Question 6

Which of the following is best identified with operations having standardization practices across country boundaries?

A) Globalization strategy
B) Global product structure standardization
C) Differentiation strategy
D) Multidomestic strategy
E) Global matrix structure

Question 7

Benefits derived from inter-unit collaboration include all but which one of the following?

A) Cost savings
B) Increased revenues
C) Greater innovations
D) Better decision making
E) Increased inter-unit conflict

Question 8

Which one of the following is not identified as being one of the primary segments of the global organizational challenge?

A) Complexity
B) Transfer of knowledge
C) Need for integration
D) Standardization
E) Differentiation

Question 9

Which one of the following statements is least true regarding a global product structure?

A) Managers in each product division can focus organizing for international operations as they see fit.
B) It provides top managers with a broad perspective on competition.
C) This is the least used structure through which managers attempt to achieve global goals.
D) Product divisions take responsibility for global operations in their specific product area.
E) Each division manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market.

Question 10

Which of these is an appropriate organizational structure in the global stage of international evolution of an organization?

A) Domestic structure with international division
B) Domestic structure with export department
C) Matrix, transnational structure
D) Worldwide, geographic product structure
E) Multidomestic structure with domestic department

Question 11

Maria performs her work duties from her home in Mexico. Her work partner is Alejandro who lives in Spain. These two individuals have a strong working relationship and their work is vital to the success of their organization. It is most likely these two individuals comprise a .

A) transinternational team
B) consortia
C) joint venture
D) virtual global team
E) transnational working model

Question 12

Which one of the following is not a reason why organizations may seek out joint ventures with other organizations?

A) To distribute new products through another country's distribution channels
B) To forward the financial responsibility for failure to another, larger organization
C) To share technological strengths
D) To capitalize on the partner's knowledge of local markets
E) To achieve production costs savings through economies of scale

Question 13

A multidomestic strategy means that competition in each country is handled independently of competition in other countries.

Question 14

When a company reaches the point where its operations actually transcend any single country, it may consider itself to be a(n) .

A) stateless corporation
B) multinational organization
C) international corporation
D) domestic operation
E) multidomestic organization

Question 15

John's primary responsibilities are that of coordinating information and activities related to key customer accounts. John can best be described as a .

A) functional manager
B) country manager coordinator
C) multidomestic strategy coordinator
D) formal network coordinator
E) business integrators

Question 16

The global geographic structure divides the world into equally sized regions, with each division reporting to a different CEO.

Question 17

All of the following except identify reasons why many organizations tap only a fraction of the potential that is available from the cross-border transfer of knowledge.

A) much of the knowledge is in the minds of the employees
B) attempts to build trust
C) barriers of language
D) the "not invented here" syndrome
E) cultural barriers

Question 18

Which one of the following statements does not provide an accurate discussion of the three primary factors motivating companies to expand internationally?

A) During the Industrial Revolution, many companies felt pressured toward building larger factories so as to seize the benefits to be gained from new technologies and production methods.
B) Investment abroad provides the opportunity to obtain raw materials, labour, and other resources at the lowest possible cost.
C) A company's market power may be increased because of broad knowledge of the cultural, social, and economic factors that affect customers.
D) Smaller volume production has provided companies a way to achieve the lowest possible cost per unit of production.
E) Companies that maintain a presence in multiple countries have marketing power and synergy greater than those with less foreign presence.

Question 19

A joint venture is a corporate entity created without any sponsors.

Question 20

High means that people accept inequality in power among institutions, organizations, and people.

A) femininity
B) coordination
C) power distance
D) uncertainty avoidance
E) business integrators