Question 1

____ are typical in highly volatile environments.

Accepted Answer

Hybrid structures are designed to adapt to changing and volatile environments, combining elements of different organizational structures to create a unique and flexible approach. Global geographic structures and transnational structures may work well in stable environments, but may not be as effective in highly volatile situations. Global matrix structures can be complex and difficult to manage in such situations.

Question 2

As organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries, managers face a tremendous ____ challenge.

Accepted Answer

As organizations become more differentiated, there is a need for coordination among various products, divisions, departments, and positions scattered across numerous countries. This coordination challenge arises due to the need to ensure that all parts of the organization work together towards common goals, avoid duplication of efforts, reduce costs, and respond quickly to changing market conditions.

Question 3

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

Accepted Answer

A multidomestic strategy means that competition in each country is handled independently of competition in other countries. This means that the company adapts its products, marketing, and business strategies to the specific needs and preferences of each local market. This approach can be effective in countries where cultural, administrative, and economic differences make it difficult to implement a global or standardized strategy.

Question 4

Wheras the _____ divisions are typically organized along functional or product lines, the _____ division is organized according to geographic interests.

Accepted Answer

The answer of Wheras the _____ divisions are typically organized...

Question 5

Some organizations create formal ____ positions to coordinate information and activities related to key customer accounts.

Accepted Answer

Network coordinator positions are designed to coordinate information and activities related to key customer accounts, allowing for efficient management of accounts across an entire organization. Functional managers typically oversee specific departments or functions, while transnational teams are composed of individuals from different countries working together on a project or initiative. A division network does not typically refer to a specific position, but rather a structure of divisions within an organization.

Question 6

All of the following are reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except:

Accepted Answer

The economies of scope can actually benefit a company by increasing its market power compared to competitors. The other choices (A, B, and C) are all common barriers that prevent organizations from fully leveraging cross-border transfer of knowledge and innovation.

Question 7

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

Accepted Answer

The answer of The ____ model reflects the ultimate in...

Question 8

Which of the following is not a primary segment of the global organizational challenge?

Accepted Answer

The need for KSAs (knowledge, skills, and abilities) is actually a crucial aspect of the global organizational challenge, as it involves developing and managing a workforce with the necessary competencies to operate effectively in a global environment. The other options (A, B, and C) are all primary segments of the global organizational challenge, as they highlight the key difficulties of managing global operations such as knowledge transfer, complexity, and coordination.

Question 9

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

Accepted Answer

Power distance refers to the extent to which people in a society accept and expect unequal distribution of power and authority among institutions, organizations, and people. A high power distance means that people are comfortable with and even expect unequal power relationships. Higher power distance cultures tend to have a more centralized organizational structure and hierarchical leadership style, where employees accept that those in authority have more power and control.

Question 10

In one survey, 70 percent of global companies reported that the most important function of corporation headquarters was to:

Accepted Answer

According to the survey, the most important function of corporation headquarters is to provide enterprise leadership, indicating that the primary purpose of headquarters is to guide and direct the overall strategy and operations of the company. While making shareholders happy and developing new goals and visions are important, they are secondary to the critical role of leadership. Providing extensive training was not listed as one of the choices in the survey.

Question 11

In the _____ stage of international development, the company is domestically oriented, but managers are aware of the global environment and may want to consider initial foreign investment.

Accepted Answer

In the domestic stage of international development, the company is focused on its domestic market and operations, but it may be aware of the global environment and the potential for foreign investment. However, the company's primary focus is on domestic growth and expansion, rather than international expansion.

Question 12

All of the following are characteristics that distinguish the transnational organization from other global organization forms except:

Accepted Answer

The other options listed are all characteristics of transnational organizations, while stable structures are not necessarily a distinguishing feature of the transnational organization form.

Question 13

The global matrix structure:

Accepted Answer

The global matrix structure works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. This structure allows for both horizontal coordination between different geographic locations and vertical coordination between different functional areas. It commonly utilizes matrix bosses as functional and product heads. The structure is not limited to firms in the international stage of international evolution, as it can also be used by multinational corporations. However, it is best suited for firms that operate in multiple geographic locations and have diverse product lines.

Question 14

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

Accepted Answer

Global teams are specifically designed to work cross-border, and include members from different countries with various skillsets. The other options (management, functional, and focus teams) may also involve working with people from different areas, but they do not necessarily span across multiple countries like global teams do.

Question 15

Thomas Friedman outlines 10 forces that flattened the world, which he calls Flatteners. Many of these forces are directly or indirectly related to advanced tecnhology, including all of the following except:

Accepted Answer

Power distance is not related to advanced technology. The other options, work flow software, supply-chaining, and the "steroids," all involve advanced technology in some way.

Question 16

Which of the following is not a benefit that results from inter-unit collaboration?

Accepted Answer

Inter-unit collaboration allows for sharing of ideas and resources which can lead to cost savings, better decision making, and greater revenues. Collaboration also often leads to increased innovation, rather than decreased. Therefore, the option that is not a benefit is decreased innovation, making option D the correct answer.

Question 17

The transnational model is characterized by:

Accepted Answer

The answer of The transnational model is characterized by:
...

Question 18

Nestle SA gets most of its sales from outside the "home" country of Switzerland, and its employees are spread all over the world. The CEO is Belgian, and the chairman was born in Austria, and more than half of the company's managers are non-Swiss. Nestle has hundreds of brands and has production facilities or other operations in almost every country in the world. Nestle is in the _____ stage of international development.

Accepted Answer

Nestle's extensive global presence, with operations and production facilities in almost every country in the world, and the fact that the majority of its managers are non-Swiss indicates that it is in the global stage of international development.

Question 19

Which of the following is not true regarding approaches to coordination and control?

Accepted Answer

Japanese companies typically take a highly centralized approach to coordination and control, with decision-making centralized in the hands of top management.

Question 20

The _____ structure divides the world into geographic reasons.

Accepted Answer

The answer of The _____ structure divides the world into...

Quiz 6: Designing Organizations for the International Environment