Question 1

Businesses are organized around functions as a way to benefit from specialization.

Accepted Answer

Organizing businesses around functions allows for specialization, where employees focus on specific tasks or areas of expertise, leading to increased efficiency and productivity.

Question 2

Outsourcing is a major function of international companies.

Accepted Answer

False

Question 3

Most of the strategic decisions of companies are centered on the various functions.

Accepted Answer

Strategic decisions in companies often revolve around their various functions such as marketing, finance, operations, and human resources, as these areas are crucial for achieving long-term objectives and competitive advantage.

Question 4

By coordinating and integrating the various functions companies are able to improve their competitive advantage.

Accepted Answer

By coordinating and integrating functions such as marketing, finance, operations, and human resources, companies can operate more efficiently, respond more quickly to market changes, and deliver better value to customers, thereby improving their competitive advantage.

Question 5

The best way to link geographically dispersed international operations is by hiring more foreign born employees.

Accepted Answer

The best way to link geographically dispersed international operations involves a combination of strategies including technology use for communication, establishing clear protocols, and possibly hiring employees with international experience or from diverse backgrounds, but not solely focusing on hiring more foreign-born employees.

Question 6

Scheduling and layout decisions are made under the administrative function.

Accepted Answer

Scheduling and layout decisions are typically made under the operations management function, which focuses on the efficient and effective processes of producing and delivering products and services.

Question 7

Investment decision is part of the finance function.

Accepted Answer

Investment decision, which involves the allocation of capital to long-term assets, is a fundamental aspect of the finance function in any organization.

Question 8

One of the key marketing functions is to choose the target market.

Accepted Answer

Choosing the target market is a fundamental marketing function, as it involves identifying and analyzing potential customers to whom a company will direct its marketing efforts and resources.

Question 9

Customer relations management attempts to attract customers by offering discounts and rebates.

Accepted Answer

Customer relations management (CRM) focuses on managing a company's interactions with current and potential customers, aiming to improve customer satisfaction, loyalty, and retention, rather than primarily attracting customers through discounts and rebates.

Question 10

Human resources management recognizes the importance of offering bonuses to all employees.

Accepted Answer

Human resources management recognizes the importance of offering bonuses, but not necessarily to all employees. Bonuses are often based on performance, company profits, or specific criteria, and may not be given to every employee.

Question 11

The key resource of a company is its people.

Accepted Answer

People are considered the key resource of a company because they bring skills, creativity, and innovation that drive the company's success and competitive advantage.

Question 12

Expatriates are employees who are recruited from colleges and universities.

Accepted Answer

Expatriates are employees who are sent by their companies to work in a foreign country, not specifically recruited from colleges and universities.

Question 13

Management information system is an assembly of components that is designed to collect retrieve, process, store, and disseminate information.

Accepted Answer

A Management Information System (MIS) is indeed designed to handle various aspects of information processing within an organization, including collecting, retrieving, processing, storing, and disseminating information to support decision-making and operational activities.

Question 14

Product innovations are mostly a result of luck.

Accepted Answer

Product innovations often result from deliberate research, development efforts, and understanding market needs, rather than merely luck.

Question 15

A bulk of the R&D spending in the United States comes from the government.

Accepted Answer

The answer of A bulk of the R&D spending in...

Question 16

Functional integration implies that
A) Marketing and other functions require equal funding allocations
B) Marketing strategies are developed in conjunction with and through the coordination of other functions
C) Marketing and selling functions have to be coordinated
D) Production and operations management requires the assistance of human resource department

Accepted Answer

Functional integration refers to the process where marketing strategies are formulated and executed in coordination with other departments within an organization to ensure a unified approach towards achieving the company's goals.

Question 17

In a highly competitive global economy it is critical that international companies
A) Emphasize interdependent customer groupings to achieve functional integration
B) Direct their efforts to be in many international markets
C) Establish large regional bases to gain competitive advantage
D) None of the above

Accepted Answer

Emphasizing interdependent customer groupings helps companies achieve functional integration and better serve their customers in different markets.

Question 18

Research has shown that some functions are naturally linked to one another and these are
A) Marketing, selling, and administration
B) Finance, personnel, and MIS
C) R&D, manufacturing, and marketing
D) Human resources, payroll, and outsourcing

Accepted Answer

R&D (Research and Development), manufacturing, and marketing are naturally linked functions within many businesses. R&D creates new products or improves existing ones, manufacturing produces these products, and marketing promotes them to potential customers. This sequence represents a typical product lifecycle from conception to sale.

Question 19

International functional coordination results in
A) Fewer subsidiary operations
B) Fewer expatriate personnel
C) Improved geographic planning
D) Improved linkages among geographically dispersed units and their varied functions

Accepted Answer

Improved linkages among geographically dispersed units and their varied functions are a direct outcome of international functional coordination, as it aims to enhance the efficiency and effectiveness of operations across different locations by ensuring that all units work together cohesively.

Question 20

Some of the activities associated with production and operations management include
A) Sourcing of materials, design and technology, and quality control
B) Logistics, investment decisions, and preparing income statement
C) Recruiting, training, and assigning staff to various subsidiaries
D) Research, data analysis, and strategic planning

Accepted Answer

Activities associated with production and operations management focus on the creation and delivery of goods and services. This includes sourcing materials, design and technology considerations, and ensuring quality control to meet customer expectations and maintain efficiency.

Quiz 7: Functional Integration