Question 1

A transnational (or hybrid) strategy seeks to achieve both global efficiency and local responsiveness.

Accepted Answer

A transnational strategy involves balancing the need for global efficiency with the need to be locally responsive, hence seeking to achieve both objectives.

Question 2

The main advantages of product-based structures are a global vision and the ability to leverage resources across regions.

Accepted Answer

Product-based structures allow for a focus on overall product strategy and the ability to allocate resources and knowledge globally, resulting in a more unified approach to product development and distribution.

Question 3

The organization design decision can be summarized as a choice between differentiation and integration.

Accepted Answer

Differentiation refers to creating different departments or units that work on specialized tasks, while integration refers to bringing these different departments or units together to work towards a common goal. Therefore, the organization design decision is essentially a choice between these two strategies.

Question 4

When referring to structure, MNE management has considerable leeway in design choices and continuously monitors the appropriateness of the structure as its operations evolve and the business environment changes.

Accepted Answer

MNE management indeed has significant control over the design of its structure and can adapt it as necessary based on changing business conditions.

Question 5

Functional structures are usually adopted by MNEs with a diversified product line.

Accepted Answer

Functional structures are typically adopted by organizations with a limited or narrow product line, as they focus on efficiency and expertise in specific business functions. MNEs with a diversified product line often use divisional or matrix structures to manage the complexity and diversity of their operations.

Question 6

A transnational strategy is one that seeks to achieve both global efficiency and local responsiveness.

Accepted Answer

A transnational strategy aims to balance the benefits of global standardization and local adaptation, seeking to achieve both global efficiency and local responsiveness.

Question 7

The autonomous strategy is typical of subsidiaries of MNEs competing in multi-domestic industries.

Accepted Answer

The autonomous strategy involves giving subsidiaries a high degree of independence in decision making and operations, which is particularly relevant for subsidiaries competing in multi-domestic industries where local responsiveness is crucial.

Question 8

In the global product design, product managers report to their counterparting divisions, which allows for the integration of development, production, and marketing.

Accepted Answer

In global product design, product managers typically report to a central authority or team rather than their counterpart divisions to ensure a cohesive strategy and integration across development, production, and marketing. This centralized approach helps in maintaining a unified product vision and strategy across different markets.

Question 9

Organization design represents an opportunity to adapt the MNEs structure to the multiple environments in which it operates and to its employees.

Accepted Answer

Organization design is an important aspect for multinational enterprises (MNEs) to match with the changing environments and cultural diversity, and to ensure the effectiveness and efficiency of their operations. It also provides an opportunity to enhance employee engagement and motivation by aligning them with the organization's goals and objectives. Thus, organization design is a critical factor for the success of MNEs.

Question 10

Implementer subsidiaries operate in more strategically important markets and have competence to maintain local operations.

Accepted Answer

The answer of Implementer subsidiaries operate in more strategically important...

Question 11

Integrating sub-units involves control, which is a direct intervention into the operations of subsidiaries to ensure conformity with organizational goals.

Accepted Answer

Integrating sub-units involves control measures to ensure that the subsidiaries are aligned with the overarching goals of the organization. This control can come in the form of direct intervention by the parent company or by establishing guidelines and performance metrics that must be met by the subsidiaries.

Question 12

The major disadvantage of the geographic structure are operating problems in a context of diverse product lines and marketing characteristics.

Accepted Answer

The geographic structure is designed to group employees based on their location, which can create operating problems when a company has diverse product lines and marketing characteristics. This can lead to difficulties in coordinating activities, sharing resources, and responding to customer needs.

Question 13

The product region matrix overlaps a regional divisional structure with a number of product managers who are expected to achieve business results and whose responsibilities cut across regional lines.

Accepted Answer

The statement describes a matrix organizational structure where there is a combination of both regional and product divisions, with product managers having responsibilities that span across different regions.

Question 14

Contributor subsidiaries operate in important markets and have distinctive capabilities.

Accepted Answer

The answer of Contributor subsidiaries operate in important markets and...

Question 15

The organization design decision can be summarized as a choice between differentiation and integration.

Accepted Answer

The organization design decision is indeed a choice between differentiation and integration, with differentiation referring to the division of labor and specialization within the organization, and integration referring to the coordination and communication between different parts of the organization to achieve common goals.

Question 16

If a unit acts as a black hole, corporate management develops resources and capabilities to make it less responsive to the local market.

Accepted Answer

A unit acting as a "black hole" in corporate management typically means it is consuming resources without generating proportional value, not that management is developing resources and capabilities to make it less responsive to the local market.

Question 17

Organization design is both driven by strategy and driving that strategy.

Accepted Answer

Organization design must align with the strategic direction of the organization in order to effectively execute that strategy. At the same time, the chosen organization design can also influence and shape the organization's strategy going forward. Therefore, it is both driven by strategy and can drive that strategy.

Question 18

Since organization design is a vehicle for strategy formulation and implementation, MNE strategy is the key input in devising its structure.

Accepted Answer

Organization design is a tool for aligning the structure, systems, and processes of an organization with its strategic objectives. Therefore, MNE strategy serves as a critical input in creating a structure that can effectively support and implement the chosen strategy.

Question 19

The matrix design structure has become quite popular in businesses today.

Accepted Answer

The answer of The matrix design structure has become quite...

Question 20

In an active strategy approach, many activities are located globally and carried out in close coordination with other subsidiaries.

Accepted Answer

The answer of In an active strategy approach, many activities...

Quiz 11: Mne Organization Structure and Design

A transnational (or hybrid) strategy seeks to achieve both global efficiency and local responsiveness.

The main advantages of product-based structures are a global vision and the ability to leverage resources across regions.

The organization design decision can be summarized as a choice between differentiation and integration.

When referring to structure, MNE management has considerable leeway in design choices and continuously monitors the appropriateness of the structure as its operations evolve and the business environment changes.

Functional structures are usually adopted by MNEs with a diversified product line.

A transnational strategy is one that seeks to achieve both global efficiency and local responsiveness.

The autonomous strategy is typical of subsidiaries of MNEs competing in multi-domestic industries.

In the global product design, product managers report to their counterparting divisions, which allows for the integration of development, production, and marketing.

Organization design represents an opportunity to adapt the MNEs structure to the multiple environments in which it operates and to its employees.

Implementer subsidiaries operate in more strategically important markets and have competence to maintain local operations.

Integrating sub-units involves control, which is a direct intervention into the operations of subsidiaries to ensure conformity with organizational goals.

The major disadvantage of the geographic structure are operating problems in a context of diverse product lines and marketing characteristics.

The product region matrix overlaps a regional divisional structure with a number of product managers who are expected to achieve business results and whose responsibilities cut across regional lines.

Contributor subsidiaries operate in important markets and have distinctive capabilities.

The organization design decision can be summarized as a choice between differentiation and integration.

If a unit acts as a black hole, corporate management develops resources and capabilities to make it less responsive to the local market.

Organization design is both driven by strategy and driving that strategy.

Since organization design is a vehicle for strategy formulation and implementation, MNE strategy is the key input in devising its structure.

The matrix design structure has become quite popular in businesses today.

In an active strategy approach, many activities are located globally and carried out in close coordination with other subsidiaries.