Question 1

A(n)________ permits managers to allocate and coordinate resources for foreign activities under one roof,and thus enhances the firm's ability to respond,both reactively and proactively,to market opportunities.
A) local division
B) international division
C) export department
D) domestic structure plus foreign subsidiary

Accepted Answer

The international division allows for coordination and allocation of resources for foreign activities, improving the firm's ability to respond to market opportunities. The other options do not provide as comprehensive a solution.

Question 2

A firm that uses an international division structure sometimes experiences intra-organizational conflict because ________.
A) such a structure disallows managers to coordinate resources for foreign activities under one roof
B) the international division invariably fails to respond to cultural differences
C) more resources and management attention tend to get channeled toward the international division than toward the domestic divisions
D) such a structure depresses the firm's ability to respond to market opportunities

Accepted Answer

When a firm uses an international division structure, it tends to channel more resources and management attention towards the international division rather than towards the domestic divisions. This can lead to intra-organizational conflict as domestic divisions may feel neglected and their interests may be undermined.

Question 3

To be effective,firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________.
A) categorically ignore niche markets
B) stop investing in domestic businesses
C) refrain from exporting
D) allow a great deal of autonomy to subsidiary managers

Accepted Answer

To be effective, firms reorganizing into a domestic structure with foreign subsidiary should allow a great deal of autonomy to subsidiary managers. This can help in adapting to the local market and responding to market changes and opportunities. Ignoring niche markets or stopping investment in domestic businesses can limit growth opportunities while refraining from exporting can limit revenue streams. Therefore, option D is the most suitable choice for effective globalization.

Question 4

Usually,smaller firms start their international involvement by ________.
A) exporting
B) divesting
C) entering into a full-blown global joint venture
D) using foreign direct investment

Accepted Answer

Exporting is often the easiest and least risky way for smaller firms to begin their international involvement. It involves minimal investment, low entry barriers, and allows firms to test the waters and gain experience in foreign markets before committing to larger investments like foreign direct investment or joint ventures.

Question 5

Which of the following does NOT represent a typical way in which firms organize their international activities?
A) domestic structure plus export department
B) matrix structure
C) domestic structure plus foreign subsidiary
D) regional structure

Accepted Answer

The answer of Which of the following does NOT represent...

Question 6

Which of the following forms of organization is particularly appropriate in a dynamic and diverse environment?
A) the global functional structure
B) the global product structure
C) the domestic structure plus export department
D) the domestic structure plus foreign subsidiary

Accepted Answer

The global product structure is particularly appropriate in a dynamic and diverse environment because it allows for flexibility and customization in response to local market demands. This structure is organized around product lines or brands, allowing for specialization and faster response times. Additionally, it can more easily adapt to changes in global markets and consumer preferences.

Question 7

Which of the following organizational structures is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?
A) global functional structure
B) international division
C) global product structure
D) matrix structure

Accepted Answer

The answer of Which of the following organizational structures is...

Question 8

Which of the following is true with regard to a global product structure?
A) A global product structure is disadvantageous for firms with diversified product lines that are aimed at dissimilar or dispersed markets.
B) The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment.
C) In a global product structure, a cluster of products are grouped into a single division.
D) A global product structure does not facilitate diversification and inhibits growth.

Accepted Answer

The advantages of a global product structure are market concentration, innovation, and responsiveness to new opportunities in a particular environment. A global product structure may not be disadvantageous for firms with diversified product lines that are aimed at dissimilar or dispersed markets. In a global product structure, products are usually divided into several divisions based on geography, product line, or customer category. A global product structure actually facilitates diversification and growth.

Question 9

Sedona Inc.is an American firm that manufactures high-quality handbags,duffel bags,and leather belts at its facility in Arizona.Sedona's products have been featured in various fashion magazines and as a result,consumer demand has increased significantly.Currently,Sedona is organized as a domestic structure plus export department.Executives at Sedona believe the firm is ready to internationalize its operations,and they are considering various organizational structures. Which of the following best supports the argument that Sedona should give its subsidiary managers significant autonomy?
A) Praxis Inc., one of Sedona's domestic competitors, has a flat organizational structure.
B) Sedona is a family-owned business that began as a subsidiary to Aloha enterprises.
C) Sedona has recently reorganized into a domestic structure plus foreign subsidiary.
D) Sedona conducts a large percentage of domestic sales through the company's Web site.

Accepted Answer

As Sedona has recently reorganized into a domestic structure plus foreign subsidiary, this suggests that they have established a subsidiary to operate in a foreign market. To successfully operate in the foreign market, Sedona's subsidiary managers should have significant autonomy to adapt to local market conditions and make decisions independently.

Question 10

With the geographic structure,the focus is on ________,since products can be adapted to local requirements.
A) marketing
B) innovation
C) divesting
D) importing

Accepted Answer

With the geographic structure, the focus is on marketing because products are adapted to local requirements. This allows for marketing strategies to be targeted towards local audiences and for products to be tailored to meet specific market demands.

Question 11

Which of the following refers to a self-contained business within a company with its own functional departments and accounting systems?
A) buying center
B) supply chain
C) value chain
D) strategic business unit

Accepted Answer

A strategic business unit (SBU) is a self-contained business within a company with its own functional departments and accounting systems. A buying center is a group of individuals responsible for making purchasing decisions within an organization. The supply chain refers to the network of businesses involved in the creation and delivery of a product or service. The value chain is a series of activities that a company performs in order to deliver a valuable product or service to its customers. None of these options fully fit the description given in the question.

Question 12

Historically,a firm reorganizes as it internationalizes to ________.
A) inhibit organizational change
B) curb competition
C) boost domestic competition
D) accommodate new strategies

Accepted Answer

As a firm expands and internationalizes, it often needs to adopt new strategies to compete in different markets. Reorganizing the firm can help it accommodate these new strategies more effectively. Therefore, the answer is D.

Question 13

Which of the following is true with regard to the structural evolution model?
A) Typically, firms that start their internationalization at a higher level of involvement use this model.
B) Firms using this model do not export.
C) This model has become known as the stages model, resulting from Stopford's research on 187 U.S. multinational corporations.
D) All firms follow this model without exception.

Accepted Answer

The structural evolution model has become known as the stages model as a result of Stopford's research on 187 U.S. multinational corporations. Therefore, option C is the correct choice. Option A is incorrect because the model does not depend on the level of involvement of the firm's internationalization; rather, it is a general framework that firms can follow. Option B is incorrect because the model does not exclude exporting as a possible method of internationalization for firms. Option D is incorrect because not all firms follow this model, as some may choose to use alternative frameworks.

Question 14

Smaller firms are most likely to reorganize into ________ during their internationalization.
A) domestic structure plus export department
B) domestic structure plus foreign subsidiary
C) global product structure
D) global functional structure

Accepted Answer

Smaller firms, when beginning to internationalize, often start by adding an export department to their existing domestic structure. This approach allows them to manage international sales without significantly altering their core organizational structure, making it a practical first step towards internationalization.

Question 15

In which of the following is a firm's foreign operations integrated into the activities and responsibilities of each department to gain operative specialization and economies of scale?
A) global matrix structure
B) global geographic structure
C) global divisional structure
D) global functional structure

Accepted Answer

In a global functional structure, a firm's foreign operations are integrated into the activities and responsibilities of each department to gain operative specialization and economies of scale. In this structure, there is a high degree of centralization and coordination among the various functions within the organization, and decisions are made at the top of the hierarchy. This structure is suitable for firms with a low level of diversification in terms of products or services offered, and who operate in a stable and predictable environment.

Question 16

Sedona Inc.is an American firm that manufactures high-quality handbags,duffel bags,and leather belts at its facility in Arizona.Sedona's products have been featured in various fashion magazines and as a result,consumer demand has increased significantly.Currently,Sedona is organized as a domestic structure plus export department.Executives at Sedona believe the firm is ready to internationalize its operations,and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a global functional structure?
A) Sedona has a highly decentralized system of management.
B) Sedona uses a variety of technologies for its numerous and varied product lines.
C) Sedona has only a few domestic competitors.
D) Sedona serves a narrow spectrum of customers and has a product line that uses similar technology.

Accepted Answer

Sedona's narrow customer base and the fact that its product line uses similar technology suggest that a global functional structure would be appropriate. This structure allows for efficient specialization and coordination within a specific area of expertise, making it easier for Sedona to manage its limited product offerings and serve its target market effectively.

Question 17

________ is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion,new markets,and diversification.
A) Segmentation
B) Integration
C) Segregation
D) Internationalization

Accepted Answer

Internationalization refers to the gradual process of a firm changing in response to global competition, domestic market saturation, and the desire for expansion, new markets, and diversification. This can include expanding operations into other countries or regions, adjusting products or services to better suit international markets, and developing partnerships or collaborations with other global businesses.

Question 18

Which of the following is true with regard to the global functional structure?
A) The global functional structure results in plants that serve widely different markets.
B) The global functional structure is most advantageous for firms with diversified product lines that have different technological bases and that are aimed at dispersed markets.
C) The global functional structure is used primarily by large firms with highly decentralized systems.
D) Foreign operations in a global functional structure are integrated into the activities and responsibilities of each department to economies of scale.

Accepted Answer

The global functional structure integrates foreign operations into each department's activities, allowing for economies of scale by centralizing functions like production and marketing.

Question 19

Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?
A) global functional structure
B) global geographic structure
C) global product structure
D) matrix structure

Accepted Answer

The most common form of organizing foreign operations is the global geographic structure, in which divisions are created to cover various regions. This allows for customization and localization of products and services based on the needs and preferences of customers in different regions. The other options (global functional structure, global product structure, and matrix structure) all have their own advantages and are used in different situations, but are less common than the global geographic structure.

Question 20

Sigma Inc.is designed on the basis of the company's business activities such as production,finance,and marketing.Foreign operations at Sigma are integrated into the activities and responsibilities of each division to achieve economies of scale and operative specialization.In other words,Sigma has a(n)________.
A) domestic structure with foreign subsidiary
B) domestic structure with export department
C) global functional structure
D) international division structure

Accepted Answer

The description of Sigma Inc's structure indicates that it is a global functional structure, where foreign operations are integrated into each division's activities and responsibilities. This structure allows for economies of scale and specialization, which are characteristics of a global functional structure. The other options (A, B, D) do not accurately describe Sigma's structure based on the given information.

Quiz 8: Organization Structure and Control Systems

A(n) ________ permits managers to allocate and coordinate resources for foreign activities under one roof,and thus enhances the firm's ability to respond,both reactively and proactively,to market opportunities.

A firm that uses an international division structure sometimes experiences intra-organizational conflict because ________.

To be effective,firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________.

Usually,smaller firms start their international involvement by ________.

Which of the following does NOT represent a typical way in which firms organize their international activities?

Which of the following forms of organization is particularly appropriate in a dynamic and diverse environment?

Which of the following organizational structures is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?

Which of the following is true with regard to a global product structure?

With the geographic structure,the focus is on ________,since products can be adapted to local requirements.

Which of the following refers to a self-contained business within a company with its own functional departments and accounting systems?

Historically,a firm reorganizes as it internationalizes to ________.

Which of the following is true with regard to the structural evolution model?

Smaller firms are most likely to reorganize into ________ during their internationalization.

In which of the following is a firm's foreign operations integrated into the activities and responsibilities of each department to gain operative specialization and economies of scale?

________ is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion,new markets,and diversification.

Which of the following is true with regard to the global functional structure?

Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?