Question 1

Whirlpool has adopted which type of organizational structure?

Accepted Answer

The product division structure is being replaced by the matrix structure. In a matrix structure, two dimensions are integrated such that each operational unit reports to both region/country managers and product managers. For example, Whirlpool has adopted the matrix structure.

Question 2

New products will be introduced worldwide

Accepted Answer

In the future, new product will be introduced simultaneously in world markets, regardless of the markets' levels of development.

Question 3

Which of the following is true about the future of distribution? Companies will

Accepted Answer

Companies will continue to pursue measures to reduce distribution costs by adopting just-in-time inventory systems and creating product flows rather than stocks. They will also coordinate their inventory systems with suppliers and clients through electronic data interchange. Moreover, companies will have to abide by post September 11, 2001, security measures, which will further reduce merchandise theft.

Question 4

Which type of organizational structure does the Guggenheim museum use?

Accepted Answer

The worldwide regional division structure is helpful for firms that have similar congruent product lines, such as Frito-Lay, or for services. For example the Guggenheim museum (i.e.,a service) has this type of structure.

Question 5

Which of the following is a trend for new products?

Accepted Answer

Product life cycles will continue to manifest their current accelerating trend. International firms must be prepared for rapid new product introductions simultaneously in world markets, regardless of the markets' levels of development.

Question 6

In environments characterized by intense competition, where decisions must be made quickly to counter competitive moves, a(n) ____________________ organization would allow for the most immediate reaction.

Accepted Answer

The answer of In environments characterized by intense competition, where...

Question 7

Countries characterized by an unstable ____________________ environment need to be able to take immediate action to adapt to the new environment and need an organizational structure that allows them to react quickly.

Accepted Answer

The answer of Countries characterized by an unstable ____________________ environment...

Question 8

Which of the following is an example of a standard that may be used to measure performance?

Accepted Answer

Actual performance is measured based on the established standards. At this point, measures such as sales, profit, and market share are assessed for the target market in a particular country or region and measured against previous performance.

Question 9

Companies can organize their operations with a(n) ____________________ focus in countries that share a language, religion, or that share other cultural similarities.

Accepted Answer

The answer of Companies can organize their operations with a(n)...

Question 10

Controlling international operations is a complex task. Which of the following actually helps to simply the process?

Accepted Answer

Local units and a regional focus often add intermediate levels of management and staffing that further complicate the management process. Different standards and measures make it difficult to compare across countries. Finally, an increased distance creates a tendency to resist influence in both directions, such that subsidiaries often fight to retain autonomy in decision making and performance evaluation, while the headquarters may resist input from the subsidiaries in the planning and evaluation process.

Question 11

The adoption of the Internet will continue to be rapid in

Accepted Answer

The adoption of the Internet will continue to be the most rapid in highly industrialized countries, where it will achieve 100 percent penetration. It will be rapid in emerging markets and especially in those markets where English is widely spoken; countries such as China, Brazil, India, and many countries in Latin America anticipate significant increases in usage.

Question 12

Which organizational structure is increasingly being replaced by the matrix structure?

Accepted Answer

The product division structure is being replaced by the matrix structure. In a matrix structure, two dimensions are integrated such that each operational unit reports to both region/country managers and product managers.

Question 13

In a ____ structure, two dimensions are integrated such that each operational unit reports to both region/country managers and product managers.

Accepted Answer

In a matrix structure, two dimensions are integrated such that each operational unit reports to both region/country managers and product managers.

Question 14

Companies with e-commerce capabilities turn away international orders

Accepted Answer

About $10 million are turned away annually by companies faced with language and cultural barriers that hinder basic communications, or they have difficulty handling the destination country's import and tax regulations or export controls in the home country. In addition, payment mechanisms are cumbersome, and there is a high rate of credit card theft, adding to the company's risk.

Question 15

About ____ percent of companies with e-commerce capabilities turn away international orders because they do not have the processes in place to fill them.

Accepted Answer

About 46 percent of companies with e-commerce capabilities turn away international orders because they do not have the processes in place to fill them.

Question 16

The ____ structure works well for firms that have global brands, as well as for local brands.

Accepted Answer

The matrix structure works particularly well for firms that have global brands as well as local brands; such companies need to coordinate marketing activities worldwide involving the global brand, and need to focus on the local market for the local brand.

Question 17

Which of the following is not an informal control?

Accepted Answer

Addressing the discrepancy between last year's sales and current sales in an example of a formal control. The other examples are informal controls.

Question 18

Firms need to consider organizational designs that fit with their external environment and with company characteristics and ____________________.

Accepted Answer

The answer of Firms need to consider organizational designs that...

Question 19

What is the first step in establishing formal controls?

Accepted Answer

Frequent contact between the home-country headquarters and the regional office and rotating managers are examples of informal controls. Before performance can be measured, standards (i.e., what to measure) must be established.

Question 20

Which statement regarding the rotating of managers is true?

Accepted Answer

Rotating managers to different assignments helps the company obtain the maximum benefit from international experience. In general, moving expatriates from one subsidiary to another will offer valuable exchange in information to be used as input into the control function. This is an effective informal control.

Quiz 17: Organizing and Controlling International Marketing Operations and Perspectives for the Future