Deck 15: Managing Global Systems

Question 1

Franchisers are a mix,the product is created,designed,financed,and initially produced in the home country,but for product-specific reasons,must rely heavily on foreign personnel for further production,marketing,and human resources.

Answer 1

True

Question 2

The major dimensions for developing an international information systems architecture are the global environment,the corporate global strategies,the structure of the organization,the management and business processes,and the technology platform.

Answer 2

True

Question 3

Franchisers develop a multiple systems usually at the home base and then replicate it around the world.

Answer 3

False

Question 4

Production driven by worldwide global demand can be concentrated where it can best be accomplished,fixed resources can be allocated over larger production runs,and production runs in larger plants can be scheduled more inefficiently and can be more imprecisely estimated.

Question 5

The domestic exporter strategy is characterized by heavy decentralization of corporate activities in the home country of origin.

Question 6

Today,the production and design of many electronic products are parcelled out to a number of different countries.

Question 7

Centralized systems are those in which systems development and operation occur totally at the domestic home base.

Question 8

Responding to demand,global production and operations have emerged with precise online coordination between far-flung production facilities and central headquarters thousands of miles away.

Question 9

Decentralized systems are those in which each foreign unit designs its own unique solutions and systems.

Question 10

Transborder data flow is defined as the movement of information across international boundaries only on the Internet.

Question 11

Duplicated systems are those in which development occurs at the home base but operations are handed over to autonomous units in foreign locations.

Question 12

Transnational firms take the globe,not the home country,as their management frame of reference.

Question 13

The multinational strategy concentrates financial management and control out of a central home base while centralizing production,sales,and marketing operations to units in other countries.

Question 14

Few companies have actually attained transnational status,but Nestlé,Citicorp,Sony,Ford,and others are attempting this transition.

Question 15

The decline of powerful communications technologies and the emergence of world cultures create the condition for global markets.

Question 16

The growth of international trade has radically altered domestic economies around the globe.

Question 17

Core systems are systems that support functions that are absolutely critical to the organization.

Question 18

A business driver is a force in the environment to which businesses must respond and that influences the direction of the business.

Question 19

Networked systems are those in which systems development and operations occur in an integrated and coordinated fashion across all units.

Question 20

An international information systems architecture consists of the basic information systems required by organizations to coordinate worldwide trade and other activities.

Question 21

Hardware,software,and networking pose special technical challenges in an international setting.

Question 22

Accounting practices can vary significantly from country to country.

Question 23

At the cultural level,differences among cultures produce differences in social expectations,politics,and legal rules.

Question 24

Agency and other coordination costs increase as the firm moves from local option systems toward regional and global systems.

Question 25

The collapse of the Eastern bloc has speeded the growth of a world culture.

Question 26

Cooptation is defined as bringing the opposition into the process of designing and implementing the solution without giving up control over the direction and nature of the change.

Question 27

Global business drivers can be divided into two groups: general cultural factors and specific business factors.

Question 28

Legitimacy is defined as the extent to which your authority is accepted on grounds of competence,vision,or other qualities.

Question 29

The universal acceptance of the Internet around the globe has not greatly reduced networking problems.

Question 30

A powerful strategic advantage for a globalized firm is lowered cost factors in production.

Question 31

Before developing a corporate strategy and structure for globalization,a firm should determine the appropriate technology infrastructure.

Question 32

Globalization means that companies can be less concerned with the laws governing the movement of information.

Question 33

With the growth of the Internet and reliable phone networks,skilled consultants are readily available to companies operating in global markets.

Question 34

The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.

Question 35

European countries have very strict laws concerning transborder data flows and privacy.

Question 36

The low cost of PCs,along with high incomes,limit access to Internet service in many developing countries.

Question 37

Micromarketing describes the direct marketing of products to individuals rather than groups.

Question 38

To avoid the cost and uncertainty of moving information across national boundaries,most multinational firms have developed information systems within each European country.

Question 39

The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information.

Question 40

Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.

Question 41

One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.

Question 42

In a multinational strategy,financial management is centralized while production and sales are decentralized.

Question 43

"Production and finance are coordinated" best describes the global business strategy and structure of a transnational.

Question 44

Production,finance,HR and strategic management are centralized,best describes the global business strategy and structure of a multinational.

Question 45

The networked systems structure is the most visible in financial services where the homogeneity of the product-money and money instruments-seems to overcome cultural barriers.

Question 46

Private networks may not provide the same level of quick and predictable response as VPNs.

Question 47

3M and other electronics companies assign distribution and production of their products to a number of different countries.

Question 48

"Production is coordinated and finance is centralized" best describes the global business strategy and structure of a franchiser.

Question 49

3M's core competencies historically have been electronics,sticky films,and scratchy papers (sandpaper),and,since its founding in 1902,3M has continuously demonstrated through new products just how much the world depends on these competencies.

Question 50

Marketing to very small geographic and social units is called:

A)targeted marketing.
B)macromarketing.
C)personalization.
D)micromarketing.

Question 51

The major dimensions of international systems architecture include each of the following EXCEPT

A)the global environment.
B)corporate global strategy.
C)technology platform.
D)transborder data flows.

Question 52

Protectionism and a need to serve local markets better encourage companies to disperse production facilities and at least become multinational.

Question 53

Production and sales are dispersed,best describes the global business strategy and structure of a multinational.

Question 54

General cultural factors driving global business are

A)global communication and transportation technologies,a global knowledge base,and global social norms.
B)the development of global markets,political stability,and a global workforce.
C)the rise of the global workforce,political stability,and a global knowledge base.
D)the rise of a global workforce,global economies of scale,and global production and operations.

Question 55

In international companies,English has become a kind of standard business language.

Question 56

Global systems allow fixed costs to be amortized over a much smaller customer base.

Question 57

Many global firms will be replaced by fast-moving networked corporations that transcend national boundaries.

Question 58

At the end of World War II,knowledge,education,science,and industrial skills were highly concentrated in North America,western Europe,and Japan,with the rest of the world euphemistically called the Developed World.

Question 59

Global coordination of all of the major business functions permits the location of business activity according to

A)social norms and values.
B)comparative advantage.
C)competitive threat.
D)knowledge base.

Question 60

A force in the environment to which businesses must respond and that influences the direction of the business is called a business

A)driver.
B)threat.
C)process.
D)matrix.

Question 61

To avoid the cost and uncertainty of moving information across national boundaries,most multinational firms

A)maintain a master database at their head offices.
B)develop a master system that meets the standards of all the countries concerned.
C)use microwave satellite transmission to move data.
D)develop separate systems within each country.

Question 62

Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?

A)Free Trade Agreement
B)European Union Data Protection Directive
C)United Nations Privacy Act
D)European Transborder Data Flow Act

Question 63

German companies

A)do not recognize the profit until the project is completely finished and they have been paid.
B)recognize profits before the project is finished.
C)recognize profits when the project is initialized.
D)do not recognize the profits until they have been formally audited.

Question 64

In duplicated systems

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.

Question 65

A company that controls finances in the home country and decentralizes production,sales,and marketing operations to other countries is using a ________ strategy.

A)domestic exporter
B)franchising
C)transnational
D)multinational

Question 66

In decentralized systems

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.

Question 67

Most large companies with overseas operations have inherited:

A)recently built technology platforms for international systems.
B)batch-oriented reporting from independent foreign divisions to corporate headquarters.
C)transaction-oriented reporting based at the home office for overseas business.
D)global marketing systems developed domestically.

Question 68

In terms of global business strategy and structure,a domestic exporter will use a policy of

A)some dispersed sales,with centralized production,accounting,human resources,and strategic management.
B)centralized production and accounting with decentralized marketing and human resources.
C)centralized production,accounting,marketing,and human resources.
D)dispersed production and marketing,with centralized accounting,human resources and strategic management.

Question 69

In terms of global business strategy and structure,a franchise company will use a policy of

A)centralized production,accounting,marketing,human resources,with strategic management.
B)dispersed production,accounting,human resources,with centralized strategic management,and marketing.
C)dispersed production and marketing,with centralized accounting,human resources and strategic management.
D)dispersed production,marketing,and human resources,with centralized strategic management and finance/accounting.

Question 70

Citicorp,Sony,and Ford are attempting to make a transition to which type of business organizational structure?

A)domestic exporter
B)multinational
C)transnational
D)franchiser

Question 71

In terms of global business strategy,the governance of ________ firms has been likened to a federal structure-strong central management core of decision making,but considerable dispersal of power and financial resources.

A)domestic exporter
B)multinational
C)franchiser
D)transnational

Question 72

In terms of global business strategy,KFC falls into which category of firm?

A)domestic exporter
B)multinational
C)franchiser
D)transnational

Question 73

In terms of global business strategy,Caterpillar Corporation and other heavy capital equipment manufacturers fall into which category of firm?

A)domestic exporter
B)multinational
C)franchiser
D)transnational

Question 74

Which of the following is NOT a specific challenge to global business system?

A)shortages of skilled consultants
B)language differences
C)different telecommunication standards
D)different data transfer speeds

Question 75

In terms of global business strategy and structure,a multinational company will use a policy of

A)mixed sales and marketing,with centralized production,accounting,human resources,and strategic management.
B)centralized production,accounting,marketing,human resources,with strategic management.
C)dispersed production,accounting,human resources,with centralized strategic management,and marketing.
D)dispersed production and marketing,with centralized accounting and strategic management.

Question 76

In terms of global business strategy,Chrysler and Intel fall into which category of firm?

A)domestic exporter
B)multinational
C)franchiser
D)transnational

Question 77

General challenges and obstacles to global business systems are typified by

A)different technology standards,shortages of skilled consultants,and social expectations.
B)brand-name expectations,language differences,and commercial regulations.
C)different work hours,transborder data and privacy laws,and different technology standards.
D)different communications standards,language differences,and network reliability.

Question 78

In networked systems

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.

Question 79

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as:

A)localization.
B)cooptation.
C)particularism.
D)prejudicial.

Question 80

In centralized systems

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)systems development and operations occur totally at the domestic home base.