Question 1

Which type of international strategic alliance, if any, would you recommend for a business that wanted to gain entry into China? Explain the reasons behind your choice.

Accepted Answer

The answer of Which type of international strategic alliance, if...

Question 2

The management philosophy of transnational model is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.

Accepted Answer

The statement accurately describes the management philosophy of the transnational model.

Question 3

Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple business, divisions, and countries for a large customer.

Accepted Answer

Network coordinators can bring together resources and expertise from different parts of a manufacturing organization to provide comprehensive solutions to large customers across different regions and divisions.

Question 4

Functional managers coordinate across functions, whereas country managers coordinate among countries.

Accepted Answer

Functional managers are responsible for coordinating activities within their own functional area, while country managers are responsible for coordinating activities across different countries in which their organization operates.

Question 5

Why has globalization and global experience in management become so important to organizations?

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Question 6

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing that could take advantage of where Ford's strength was around the world.
The company had been organized geographically into three relatively independent divisions--Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.
Simultaneously a new "program team facility" was being constructed so that all of Ford's new product development would be by teams. The new coupe Mustang was borne from an experimental cross-functional team that designed the product in less than three years compared to Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than comparable project budgets.
SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pages A3-A4.
-Reference Case 6.0. Describe how Ford's proposed structural changes are rather different from the usual progression resulting from international development. Describe how Ford's proposed structural changes parallel the new designs for domestic and global advantage.

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The answer of Case 6.0
It was reported in the Wall...

Question 7

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Accepted Answer

Low uncertainty avoidance cultures are more accepting of ambiguity and unpredictability, whereas high uncertainty avoidance cultures seek structure, rules and clear guidelines to minimize uncertainty.

Question 8

Select any organization with which you are familiar--your college, the Toyota dealership down the road, a corporation where you work, etc. Analyze the global forces that influence the organization you selected. How should the organization respond to those global forces in order to gain international competitive advantage?

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The answer of Select any organization with which you are...

Question 9

Describe the stages of international evolution in terms of their strategic orientation.

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The answer of Describe the stages of international evolution in...

Question 10

Compare and contrast the globalization strategy and the multidomestic strategy. Give an example of effective use of each strategy.

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Question 11

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing that could take advantage of where Ford's strength was around the world.
The company had been organized geographically into three relatively independent divisions--Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.
Simultaneously a new "program team facility" was being constructed so that all of Ford's new product development would be by teams. The new coupe Mustang was borne from an experimental cross-functional team that designed the product in less than three years compared to Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than comparable project budgets.
SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pages A3-A4.
-Reference Case 6.0. Draw out an organization chart showing the structure that Ford had been using; place in your chart the functional departments and geographic departments that are mentioned in the case. Then, in contrast, draw out an organization chart showing the relationships proposed in this case; again place in your chart the functional departments and geographic departments that are mentioned in the case. Label each organization chart.

Accepted Answer

The answer of Case 6.0
It was reported in the Wall...

Question 12

What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

Accepted Answer

The answer of What are the international strategic alliances that...

Question 13

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing that could take advantage of where Ford's strength was around the world.
The company had been organized geographically into three relatively independent divisions--Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.
Simultaneously a new "program team facility" was being constructed so that all of Ford's new product development would be by teams. The new coupe Mustang was borne from an experimental cross-functional team that designed the product in less than three years compared to Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than comparable project budgets.
SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pages A3-A4.
-Reference Case 6.0. In a general sense, what do you see as the primary differences between horizontal corporations and functionally organized corporations? Apply your observations to the Ford case and comment on any difficulties you might see in Ford being able to adopt the philosophy and behavior of a horizontal corporation as they made the structural change CEO Trotman outlined.

Accepted Answer

The answer of Case 6.0
It was reported in the Wall...

Question 14

Compare and contrast the typical alliances: licensing, joint ventures, and consortia.

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The answer of Compare and contrast the typical alliances: licensing,...

Question 15

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

Accepted Answer

High uncertainty avoidance actually means that people have a low tolerance for ambiguity and prefer clear rules, structured situations, and stable institutions. It is less related to acceptance of power inequality among individuals or organizations.

Question 16

Discuss each of the motivations for global expansion.

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Question 17

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing that could take advantage of where Ford's strength was around the world.
The company had been organized geographically into three relatively independent divisions--Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.
Simultaneously a new "program team facility" was being constructed so that all of Ford's new product development would be by teams. The new coupe Mustang was borne from an experimental cross-functional team that designed the product in less than three years compared to Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than comparable project budgets.
SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pages A3-A4.
-Reference Case 6.0. Identify the strategy given in our textbook that Ford appeared to be adopting. Describe advantages and disadvantages of that strategy for Ford. Why do you think CEO Trotman moved to that strategy?

Accepted Answer

The answer of Case 6.0
It was reported in the Wall...

Question 18

A transnational team is a work group made up of multinational members whose activities span multiple countries.

Accepted Answer

A transnational team is a work group that consists of individuals from multiple countries whose activities cross country borders.

Question 19

The transnational 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 transnational model is designed to balance the complexities of diverse units with mechanisms for coordination and integration. This makes it an effective approach for large organizations operating in multiple locations or countries.

Question 20

Many large international companies are moving toward a multidomestic model of organization.

Accepted Answer

The answer of Many large international companies are moving toward...

Quiz 6: Designing Organizations for the International Environment

Which type of international strategic alliance, if any, would you recommend for a business that wanted to gain entry into China? Explain the reasons behind your choice.

The management philosophy of transnational model is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.

Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple business, divisions, and countries for a large customer.

Functional managers coordinate across functions, whereas country managers coordinate among countries.

Why has globalization and global experience in management become so important to organizations?

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Describe the stages of international evolution in terms of their strategic orientation.

Compare and contrast the globalization strategy and the multidomestic strategy. Give an example of effective use of each strategy.

What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

Compare and contrast the typical alliances: licensing, joint ventures, and consortia.

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

Discuss each of the motivations for global expansion.

A transnational team is a work group made up of multinational members whose activities span multiple countries.

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

Many large international companies are moving toward a multidomestic model of organization.