Question 1

In terms of global business strategy, the governance of ________ firms has been likened to a federal structure-strong central management core of decision making, but considerable dispersal of power and financial resources.
A) domestic exporter
B) multinational
C) franchiser
D) transnational
E) domestic importer

Accepted Answer

The description of a strong central management core of decision making, but considerable dispersal of power and financial resources, is typical of transnational firms. These firms operate in multiple countries and have a decentralized structure, with decision-making power distributed throughout the organization. This allows them to be more responsive to local market conditions and to adapt to local cultures, while still maintaining a centralized core focus on overall strategy and direction.

Question 2

In a multinational strategy, financial management is centralized while production and sales are decentralized.

Accepted Answer

In a multinational strategy, companies often centralize financial management to maintain control over financial operations and ensure consistency across different markets. However, production and sales are typically decentralized to allow for adaptation to local market conditions and customer preferences.

Question 3

There are two primary global organization types:
 management centralized in the home country or distributed to foreign centers.

Accepted Answer

The answer of There are two primary global organization types:
...

Question 4

In a franchiser business strategy, each foreign unit designs its own solutions and systems.

Accepted Answer

In a franchiser business strategy, the franchiser provides a standardized system for all units to follow in order to maintain brand consistency and quality control. Each unit is expected to comply with these established systems and solutions, with limited room for customization.

Question 5

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy.
A) domestic exporter
B) franchising
C) transnational
D) multinational
E) conglomerate

Accepted Answer

A multinational strategy involves a company controlling finances in its home country while decentralizing production, sales, and marketing operations to various other countries. This approach allows the company to tailor its products and services to meet the specific needs of each local market.

Question 6

Most companies pursuing a global strategy begin as
A) domestic exporters.
B) multinationals.
C) franchisers.
D) transnationals.
E) conglomerate corporations.

Accepted Answer

Most companies pursuing a global strategy begin as domestic exporters, meaning they sell their products or services in foreign markets through agents or distributors. This is the least risky and least expensive way to enter foreign markets, allowing companies to test the waters and gradually expand their international presence. As they gain experience and resources, they may evolve into more complex global structures such as multinational corporations, franchisers, or transnationals.

Question 7

Describe the four main global strategies that form the basis for global firms' organizational structure.

Accepted Answer

The answer of Describe the four main global strategies that...

Question 8

In terms of global business strategy and structure, a franchise company will use a policy of
A) centralized production, accounting, marketing, human resources, with strategic management.
B) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
C) dispersed production and marketing, with centralized accounting, human resources and strategic management.
D) dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting.
E) decentralized production, accounting, human resources, with a decentralized management.

Accepted Answer

A franchise company typically allows its individual franchisees to handle production, marketing, and human resources on a local level, while the overall strategic management and finance/accounting are handled centrally. This allows for some degree of flexibility and adaptation to local markets, but also ensures consistency and coordination across the franchise network. Therefore, the best choice is D.

Question 9

Transnational firms have
A) no single national headquarters but many regional headquarters and perhaps a world headquarters.
B) headquarters in each country where they do business.
C) headquarters in the home country with smaller headquarters around the world.
D) no single headquarters.
E) a centralized headquarters but not in the home country.

Accepted Answer

Transnational firms have a decentralized organizational structure with multiple regional headquarters and sometimes a world headquarters, which allows them to operate globally without being tied to a single national headquarters.

Question 10

All of the following present challenges to developing global business systems except
A) foreign accounting practices.
B) production costs.
C) language differences.
D) exchange rates.
E) shortages of skilled consultants.

Accepted Answer

Production costs are not a challenge specific to developing global business systems; they are a general business concern affecting both domestic and international operations. The other options directly impact the complexity and implementation of global systems.

Question 11

What are the organizational principles a company should follow to develop a global company and its information systems support structure?
 Do you agree?
 Would you change these principles, or add others?
 Support your answer.

Accepted Answer

The answer of What are the organizational principles a company...

Question 12

Which of the following is not one of the system configurations used by global firms?
A) centralized
B) duplicated
C) decentralized coordinated
D) networked
E) localized

Accepted Answer

The answer of Which of the following is not one...

Question 13

Which of the following is not a business driver of global business?
A) global communication and transportation technologies
B) development of global culture
C) emergence of global social norms
D) political stability
E) growth of international systems

Accepted Answer

The answer of Which of the following is not a...

Question 14

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms
A) maintain a master database at their head offices.
B) develop a master system that meets the standards of all the countries concerned.
C) use microwave satellite transmission to move data.
D) develop separate systems within each country.
E) use a cloud-based service.

Accepted Answer

The answer of To avoid the cost and uncertainty of...

Question 15

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as
A) localization.
B) cooptation.
C) particularism.
D) prejudicial.
E) globalization.

Accepted Answer

The answer of Making judgments and taking action on the...

Question 16

In a transnational business strategy, all of the regional units participate and coordinate over all activities, from production to sales.

Accepted Answer

In a transnational business strategy, regional units participate and coordinate over all activities, from production to sales, in order to achieve a global integration while also adapting to the local market conditions.

Question 17

Which of the following is not a specific challenge to global business systems?
A) shortages of skilled consultants
B) cultural expectations
C) different telecommunication standards
D) different data transfer speeds
E) unreliable phone networks

Accepted Answer

The answer of Which of the following is not a...

Question 18

In terms of global business strategy and structure, a multinational company will use a policy of
A) mixed sales and marketing, with centralized production, accounting, human resources, and strategic management.
B) centralized production, accounting, marketing, human resources, with strategic management.
C) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
D) dispersed production and marketing, with centralized accounting and strategic management.
E) making local units that are clones of the mother country units.

Accepted Answer

The answer of In terms of global business strategy and...

Question 19

Which of the following is not one of the primary types of firm strategy discussed in the chapter?
A) domestic exporter
B) multinational
C) franchiser
D) transnational
E) international exporter

Accepted Answer

The answer of Which of the following is not one...

Question 20

In terms of global business strategy and structure, a multinational strategy
A) centralizes production and accounting and decentralizes marketing and human resources.
B) concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.
C) centralizes production, accounting, marketing, and human resources.
D) disperses production and marketing, with centralized accounting, human resources and strategic management.
E) concentrates production and marketing in each country, and decentralizes accounting and human resources.

Accepted Answer

A multinational strategy involves concentrating financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. This allows for customization of products and services to meet local market needs while also maintaining centralized control over financial operations. Centralizing all functions would not be effective in a multinational strategy.

Quiz 15: Managing Global Systems

In terms of global business strategy, the governance of ________ firms has been likened to a federal structure-strong central management core of decision making, but considerable dispersal of power and financial resources.

In a multinational strategy, financial management is centralized while production and sales are decentralized.

There are two primary global organization types: management centralized in the home country or distributed to foreign centers.

In a franchiser business strategy, each foreign unit designs its own solutions and systems.

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy.

Most companies pursuing a global strategy begin as

Describe the four main global strategies that form the basis for global firms' organizational structure.

In terms of global business strategy and structure, a franchise company will use a policy of

Transnational firms have

All of the following present challenges to developing global business systems except

What are the organizational principles a company should follow to develop a global company and its information systems support structure? Do you agree? Would you change these principles, or add others? Support your answer.

Which of the following is not one of the system configurations used by global firms?

Which of the following is not a business driver of global business?

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as

In a transnational business strategy, all of the regional units participate and coordinate over all activities, from production to sales.

Which of the following is not a specific challenge to global business systems?

In terms of global business strategy and structure, a multinational company will use a policy of

Which of the following is not one of the primary types of firm strategy discussed in the chapter?

In terms of global business strategy and structure, a multinational strategy