Question 1

Three types of control systems are used in MNEs. These are ________.

Accepted Answer

Market control, bureaucratic control, and clan control are the three types of control systems commonly used in multinational enterprises (MNEs). Market control involves using external market mechanisms to establish standards and performance criteria. Bureaucratic control relies on administrative and hierarchical methods, such as rules, procedures, and formal authority. Clan control is based on shared values, beliefs, corporate culture, and informal relationships to guide employee behavior and decisions.

Question 2

MNEs typically use reporting systems for foreign operations that are similar to the ones they use domestically ________.

Accepted Answer

MNEs use reporting systems for foreign operations that are similar to the ones they use domestically because common systems allow comparative evaluations, which can help in decision-making processes and in determining the overall performance of the company. This is not limited to only the early stages of operating abroad or until subsidiaries demonstrate mastery of the form, nor is it limited to countries with similar systems of information technology.

Question 3

Some MNEs that have tried contemporary structures have run into problems,most notably ________.

Accepted Answer

The answer of Some MNEs that have tried contemporary structures...

Question 4

Which of the following is most likely a true statement about organization culture?

Accepted Answer

The answer of Which of the following is most likely...

Question 5

A hyperarchy is ________.

Accepted Answer

A hyperarchy is a type of organizational structure that is characterized by a large-scale, self-organizing community. It is a decentralized and non-hierarchical form of organization, with no clear superior or subordinate relationships. The term is often used in the context of digital and online communities, where individuals collaborate and interact with each other in a networked environment. Therefore, option C is the correct answer.

Question 6

Which of the following is NOT one of the three prevalent approaches to coordination?

Accepted Answer

The three prevalent approaches to coordination in organizations are standardization, mutual adjustment, and planning. Adaptation is not typically listed as one of the primary coordination mechanisms in organizational theory. Standardization involves creating uniform procedures or norms, mutual adjustment relies on informal communication, and planning involves setting out actions in advance.

Question 7

Abel Enterprises has implemented a system based on coordination by mutual adjustment. Which of the following would most likely be used by Abel Enterprises?

Accepted Answer

Coordination by mutual adjustment relies on informal communication and relationships to coordinate work. Social networking, such as online communication tools, would be the most likely used by Abel Enterprises to facilitate this type of coordination. The other options listed, such as strict scheduling and centralized decision making, rely on more structured and formal processes, which do not align with coordination by mutual adjustment.

Question 8

A company adopting a(n)________ strategy will likely aim to develop an organization culture that helps employees around the world unconditionally accept common goals and practices.

Accepted Answer

A global strategy involves standardizing products, services, and processes across countries, and this requires a high degree of coordination and integration across borders. To achieve this, a company may aim to develop a shared organizational culture that encourages employees from different countries to accept common goals and practices. This can help the company to achieve consistency in its operations and maintain its competitiveness in global markets.

Question 9

Patrons of McDonald's can enter the restaurant located in any part of the world and expect to see employees wearing the same uniforms and menus offering the same products. McDonald's most likely uses which system of coordination?

Accepted Answer

McDonald's uses standardization to maintain consistency in its operations worldwide. The company has standardized its menu, uniforms, and other operational procedures to provide a consistent experience to customers across all locations.

Question 10

Grover Enterprises is an MNE that relies on shared values among all employees to idealize the preferred behaviors and identify performance measures within the company. Grover is most likely applying a system of ________.

Accepted Answer

Clan control is a system of control that relies on shared values, beliefs, and corporate culture to regulate employee behaviors and operational processes. As Grover Enterprises uses shared values among all employees to idealize preferred behaviors and identify performance measures, it is most likely applying clan control. Market control involves using market mechanisms such as pricing and competition to regulate the behaviors of suppliers, customers, and competitors. Bureaucratic control involves using standardized rules and procedures to regulate employee behavior and operational processes. Planning control involves setting goals and performance targets and using feedback to regulate employee behavior and organizational performance.

Question 11

Formal reports,management performance evaluations,and financial metrics are three examples of ________.

Accepted Answer

The answer of Formal reports,management performance evaluations,and financial metrics are...

Question 12

Martin Manufacturing is an MNE that centralizes authority to implement an extensive set of rules and procedures to govern a broad range of activities. Martin Manufacturing is most likely applying a system of ________.

Accepted Answer

Martin Manufacturing is applying a system of bureaucratic control, which involves implementing rules and procedures to govern activities and is characterized by centralization of authority. Market control involves using market mechanisms to regulate activities, adjustment control involves making changes as needed to adapt to changes in the environment, and clan control involves using shared values and beliefs to regulate behavior.

Question 13

Falcon Enterprises is an MNE that uses price competition and relative market share to establish internal performance benchmarks and standards. The firm is most likely applying a system of ________.

Accepted Answer

Falcon Enterprises is using market control, which involves using competition and market forces to establish performance standards and benchmarks. Bureaucratic control involves establishing rules and procedures, standardization control involves setting specific standards and procedures, and clan control involves using social norms and values to guide behavior.

Question 14

Which of the following is NOT one of the main priorities for most corporate universities?

Accepted Answer

While complying with labor regulations is important, it is not typically one of the main priorities for most corporate universities. The other options listed are more commonly considered the main priorities.

Question 15

Which of the following begins with a company defining critical success factors and specifying objective targets and hard deadlines?

Accepted Answer

Coordination by plan involves a company defining critical success factors and specifying objective targets and hard deadlines, which is exactly what is described in the question. Coordination by standardization involves developing standardized procedures and processes. Coordination by consensus involves reaching agreement through collaboration and compromise. Coordination by intervention involves a third party intervening in conflicts or issues to resolve them.

Question 16

Market-share increase and turnover ratios are examples of ________.

Accepted Answer

The answer of Market-share increase and turnover ratios are examples...

Question 17

________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.

Accepted Answer

Organizational culture refers to the shared values, beliefs and norms among the employees of an organization. It influences the behavior, attitudes and decision-making within the organization. Organizational system refers to the way the organization is designed and managed to achieve its goals, while organizational structure refers to the formal arrangement of roles, responsibilities and reporting relationships in the organization. Organizational vision refers to the desired future state and direction of the organization.

Question 18

Which tool is used by most firms to monitor the data linkages among product planning,parts purchasing,and inventory maintenance activities?

Accepted Answer

Information systems are the tools most commonly used by firms to monitor data linkages among product planning, parts purchasing, and inventory maintenance activities. Such systems can provide real-time information and analytics on inventory levels, demand forecasts, sales trends, and supply chain performance, among other things. By leveraging these insights, companies can make more informed decisions about their product portfolios, procurement strategies, and inventory management practices, thereby improving their overall efficiency and competitiveness.

Question 19

Coordination refers to ________.

Accepted Answer

Coordination is the process of linking various value activities within an organization to achieve a common goal. It involves bringing together diverse elements and synchronizing them to work as a cohesive unit towards a common objective. Options B, C, and D are not accurate definitions of coordination.

Question 20

The temporary arrangement of independent companies,suppliers,and free agents for the purpose of completing a task or project is best known as a(n)________ organization.

Accepted Answer

A virtual organization is a temporary arrangement of independent companies, suppliers, and free agents for the purpose of completing a task or project. Virtual organizations rely heavily on technology to communicate and coordinate their activities, and members may be located anywhere in the world. Independent, decentralized, and international organizations do not necessarily share the same characteristics as virtual organizations.

Quiz 15: The Organization of International Business