Deck 17: Leadership, Organization, and Corporate Social Responsibility

Question 1

In recent quarters, the strongest results have come from PepsiCo's fast-growing international division.Snack sales are particularly strong in Mexico and Russia.

Answer 1

False

Question 2

At companies with a global orientation, the best person for top executive positions is generally considered to be a person born in the headquarters country.

Answer 2

False

Question 3

A major disadvantage of a regional center is its cost.

Answer 3

True

Question 4

In the long run, an organization derives its global competitiveness from its ability to bring high-quality, low-cost products to market faster than its competitors.

Question 5

A geographically dispersed company cannot limit its knowledge to product, function, and the home territory.

Question 6

Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in whichautonomous business units operate with their own agendas and a minimum of horizontal interdependence.

Question 7

When business is conducted in a single region that is characterized by differences in economic, social,geographical, and political conditions, there is both justification and need for a management center.

Question 8

New forms of flexibility, efficiency, and responsiveness are required to meet the demands of globalizing markets.

Question 9

Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company.He explained that the speed of innovation that is required to compete in the world mandates that we must
have seamless communication.

Question 10

During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.

Question 11

A key issue in global organization is how to achieve balance between autonomy and integration.

Question 12

A Brazilian, Carlos Ghosn, an executive in the company, was required to move aggressively to cut costs and make drastic changes in Nissan's structure.

Question 13

McDonald's organizational design integrates the international division and geographical structures with McDonald's U.S.having five geographical operating divisions, and McDonald's International having
four.

Question 14

Indra Nooyi, chair and chief executive of PepsiCo, is faced with rising commodity prices and weak demand for carbonated soft drinks internationally.

Question 15

Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment.This and other values reflect Unilever's philosophy of "doing well by doing good."

Question 16

According to Kenichi Ohmae's view of the world, there are 30 regions with populations ranging from 5 million to 20 million people.Based on this, China would be viewed as several distinct regions.

Question 17

Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.

Question 18

As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to break from traditional organization patterns.

Question 19

Frederick Taylor claimed that all managers had to see the world the same way.

Question 20

Successful companies, the real global winners, must have both good strategies and good execution.

Question 21

The U.S.mass producers focus on long-term income and return on investment, whereas Japanese see the process in terms of the short-term perspective.

Question 22

The Toyota Production system (TPS)is based on two concepts.The first one is Jidoka, which involves visualizing potential problems.

Question 23

Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes.

Question 24

Being socially responsible is not only the right thing to do; it can distinguish a company from its industry peers.

Question 25

The antiglobalization movement constitutes an important primary stakeholder for global companies.

Question 26

There is general agreement that the matrix design is the single best organization structure for global marketing.

Question 27

The differences between lean producers and U.S.mass producers in the way they deal with their respective dealers, distributors, and customers are as dramatic as the differences in the way they deal with their suppliers.

Question 28

Primary stockholders include top management, employees, customers, media, and persons holding stock in the company.

Question 29

Toyota Production system (TPS), as the Japanese company's manufacturing methods are known, achieves efficiencies by following a lean production system.

Question 30

A stakeholder is any group or individual that is affected by, or takes an interest in, the policies and practices adopted by an organization.

Question 31

Despite the fact that Starbucks is widely admired for forward-thinking management policies, Global Exchange pressed the company to further demonstrate its commitment to social responsibility by selling Fair Trade coffee.

Question 32

The advantage of the mass producers lasted until the Japanese auto companies further revised the value chain and created lean production.

Question 33

One of the Corporate Social Responsibility (CSR)initiatives by IKEA's primary carpet supplier in India is to monitor subcontractors to ensure that they do not employ children.

Question 34

Both Gillette and Ericsson reorganized themselves into matrix organizations.

Question 35

Today's chief executive must have good understanding and respond to the concerns and interests of a variety of stakeholders.

Question 36

In developing countries, globalization's opponents accuse companies of placing intellectual property rights ahead of human rights.

Question 37

Once a Japanese dealership gets a customer, it is absolutely determined to hang on to that customer for life.

Question 38

Timberland Company unveiled a "nutritional label" on its footwear boxes as a means of communicating its corporate social responsibility commitment to consumers.

Question 39

Corporate social responsibility (CSR)refers to a company's obligation to pursue goals and policies that are in a company's best interest.

Question 40

The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.

Question 41

As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n):

A)matrix structure.
B)international division structure.
C)geographic structure.
D)worldwide product division structure.
E)regional management center.

Question 42

The advantages that a regional management center can offer a company includes all of the following except:

A)pan-regional decision making.
B)coordinated regional planning.
C)considerable cost saving.
D)coordinated control.
E)coordinated decision making.

Question 43

Which of the following is the best organization structure for global marketing?

A)international division structure
B)matrix
C)geographic structure
D)worldwide product division structure
E)There is no single "best" structure for global marketing.

Question 44

According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are:

A)adept at exchanging ideas.
B)absolutely free of the "not-invented here" syndrome.
C)constantly working together to identify best global opportunities.
D)working together to solve the biggest global problems.
E)able to adapt to systems across borders.

Question 45

One of the potential drawbacks of a regional management center is that:

A)pan-regional coordination efforts can suffer.
B)the cost can be prohibitive.
C)the company may lose its "insider" advantage.
D)regional management may take a one-sided approach when implementing corporate objectives.
E)there is a lack of coordinated decision making.

Question 46

Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company.His reasons for this action included all of the following statements except:

A)the need to have seamless communication.
B)not to depend on a small group of people.
C)impede information sharing.
D)facilitate decision making.
E)utilizing everybody's wisdom.

Question 47

According to Carly Florina, former CEO of Hewlett-Packard, leadership is about:

A)hierarchy.
B)title.
C)status.
D)connecting.
E)bragging.

Question 48

Indra Nooyi, chairman and chief executive of PepsiCo, is faced with all of the following except:

A)rising prices for raw materials in the United States.
B)a weak demand for carbonated soft drinks in the United States.
C)a rapidly growing international division.
D)strong snack sales in Mexico and Russia.
E)a decrease in sales in the Middle East and Argentina.

Question 49

The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere.Which is true and reflects the earlier statement?

A)There are 200 million Chinese children studying English.
B)There are 24 million American children studying Chinese.
C)There are 200 million Indian children studying Chinese.
D)Chinese managers study English as much as Chinese.
E)There are equal numbers of American and Chinese children studying English.

Question 50

According to Prahalad and Hamel, a core competence has all of the following characteristics except:

A)potential access to a wide variety of markets.
B)a significant contribution to perceived customer benefits.
C)it is easy for competitors to imitate.
D)benefits to customers.
E)it is difficult for competitors to imitate.

Question 51

A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n):

A)matrix structure.
B)international division structure.
C)geographic structure.
D)worldwide product division structure.
E)regional management center.

Question 52

A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):

A)matrix structure.
B)international division structure.
C)geographic structure.
D)worldwide product division structure.
E)regional management center.

Question 53

Marjorie Scardino is chief executive of:

A)Nissan Motor (Japan).
B)Pearson PLC (Great Britain).
C)Ford Motor Company (USA).
D)Pharmacia Corporation (USA).
E)Atlas Copco AB (Sweden).

Question 54

In today's dynamic global competitive environment, organizations need to develop new forms of:

A)ethnocentrism and myopia.
B)flexibility, efficiency, and responsiveness.
C)export department structure.
D)self-reference criterion.
E)geographic structure.

Question 55

Which of the following does not contribute to the establishment of an international division?

A)top management commitment that justifies an organizational unit headed by a senior manager
B)complexity of international operations requires unit with authority to make its own decisions
C)Management recognizes the need for internal specialists.
D)Management lacks desire to scan the globe for opportunities and threats.
E)Pressure to assemble a staff that will take the responsibility to coordinate.

Question 56

Which of the following has an American woman as the chief executive?

A)Nissan Motor (Japan)
B)Pearson PLC (Great Britain)
C)Ford Motor Company (USA)
D)Pharmacia Corporation (USA)
E)Atlas Copco AB (Sweden)

Question 57

Brazilian Carlos Ghosn is chief executive of:

A)Nissan Motor (Japan).
B)Pearson PLC (Great Britain).
C)Ford Motor Company (USA).
D)Pharmacia Corporation (USA).
E)Atlas Copco AB (Sweden).

Question 58

Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?

A)Paul Krugman
B)Kenichi Ohmae
C)Tom Peters
D)Michael Porter
E)Kazuo Inamori

Question 59

Fred Hassan, a native of Pakistan, is chief executive of:

A)Nissan Motor (Japan).
B)Pearson PLC (Great Britain).
C)Ford Motor Company (USA).
D)Schering-Plough (USA).
E)Atlas Copco AB (Sweden).

Question 60

In addition to "selling" their visions, top management at both Whirlpool and GE face the formidable task of building:

A)their company stature.
B)physical layout and design.
C)a cadre of globally oriented managers.
D)a cadre of loyal customers.
E)access to distribution channels.

Question 61

Which of the following is not the way U.S.auto mass producers operate?

A)greater labor content
B)less mechanization
C)less flexible mechanization
D)divide employees in discrete specialties
E)lack of employee teamwork

Question 62

Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?

A)Whirlpool
B)Levi Strauss
C)Pearson PLC
D)ABB
E)Gillette

Question 63

In developing countries, globalization's opponents accuse companies of:

A)undermining local cultures.
B)placing intellectual property rights ahead of human rights.
C)promoting unhealthy diets and unsafe food technologies.
D)pursuing unsustainable consumption.
E)all of the above

Question 64

Having established that the matrix is appropriate, management can expect the matrix to integrate the following competency on a worldwide basis.

A)geographic knowledge
B)product knowledge and know-how
C)functional competence in finance, production and marketing
D)knowledge of customer or industry and its needs
E)all of the above are competencies

Question 65

Under the geographical and product division structures, for the company with French origins, France is:

A)the headquarter country market.
B)simply another geographic market.
C)European market.
D)divisional market.
E)product market.

Question 66

The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions:

A)factor conditions, demand conditions, industry conditions.
B)human rights, animal rights, and the environment.
C)content domain, human conditions and animal rights.
D)human rights, labor, and the environment.
E)content domains, animal rights, and labor.

Question 67

Which of the following does not describe the Toyota Production System (TPS)?

A)jidoka
B)'just-in-time'
C)fixed setup time
D)built-in quality
E)visualizing problems

Question 68

Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization.This new design is expected to have all but one of the following benefits:

A)lower costs and quicken updates.
B)facilitate problem solving.
C)unite engineering and manufacturing processes.
D)provide customer contacts.
E)enhance product consistency.

Question 69

In contrast to the lean producers, U.S.mass producers typically maintain operations that involve all of the following except:

A)less mechanization.
B)greater labor direct content.
C)divide employees with no overlap.
D)limited quality control.
E)employee teamwork.

Question 70

Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?

A)matrix structure
B)international division structure
C)geographic structure
D)worldwide product division structure
E)regional management center

Question 71

The key to successful matrix management is ensuring that managers are able to:

A)adopt a matrix design.
B)adhere to matrix structure.
C)maintain technical systems.
D)resolve conflicts and achieve integration.
E)preserve existing organizational culture.

Question 72

Concepts such as "assembler value chains" and "downstream value chains" are associated with:

A)lean production.
B)the matrix structure.
C)polycentric organizational designs.
D)the global marketing audit.
E)traditional assembly designs.

Question 73

The Timberland Company is best known for its popular hiking boots and work boots.It is a global mission-centered company.Timberland unveiled a sort of "nutritional label" on its footwear boxes as a means of:

A)showing the strength of work boots.
B)promoting the health benefit of walking.
C)communicating its CSR commitment.
D)showing the quality of materials used.
E)communicating the popularity of hiking boots.

Question 74

Secondary shareholders include all of the following except:

A)media.
B)employees.
C)local community groups.
D)nongovernmental organizations.
E)general business community.

Question 75

In a socially responsible firm, employees perform all of the following except:

A)conduct business in an ethical manner.
B)pursue goals and policies that are in society's best interest.
C)guided by moral principles.
D)distinguish between right and wrong.
E)develop their own core ideologies on moral principles.

Question 76

Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes.This is an example of the demand for:

A)labor unions.
B)equal opportunity employment.
C)higher wages.
D)standards for working conditions.
E)corporate social responsibility.

Question 77

Which of the following assumptions does not belong in a list of characteristics of lean production?

A)labor is more costly than machines
B)set up time can be reduced
C)minimize inventory to cut costs, waste
D)maximize backwards integration
E)inspection to prevent defective production

Question 78

The organization design in which an employee reports to both a country manager and a functional manager is a(n):

A)matrix structure.
B)international division structure.
C)geographic structure.
D)worldwide product division structure.
E)regional management center.

Question 79

Which of the following does not belong in a list of mass production in automobile company such as Ford?

A)changing value chains
B)use of moving assembly line
C)organized production machinery
D)outsource from supplier specialists
E)each worker was able to do more than craft producers

Question 80

Primary stakeholders include all of the following except:

A)top management.
B)employees.
C)media.
D)suppliers.
E)customers.