Deck 15: Managing Global Systems

Question 1

Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.

Answer 1

False

Question 2

The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.

Answer 2

True

Question 3

One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.

Answer 3

True

Question 4

Global systems allow fixed costs to be amortized over a much smaller customer base.

Question 5

In international companies, English has become a kind of standard business language.

Question 6

Globalization means that companies can be less concerned with the laws governing the movement of information.

Question 7

There are two global organization options: management is either centralized in the home country or distributed to local, foreign centers.

Question 8

With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets.

Question 9

Private networks may not provide the same level of quick and predictable response as VPNs.

Question 10

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country.

Question 11

Accounting practices can vary significantly from country to country.

Question 12

Micromarketing describes the direct marketing of products to individuals rather than groups.

Question 13

At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules.

Question 14

The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information.

Question 15

The first step in establishing a corporate strategy and structure for globalization is to determine the appropriate technology platform.

Question 16

Global business drivers can be divided into two groups: general cultural factors and specific business factors.

Question 17

European countries have very strict laws concerning transborder data flows and privacy.

Question 18

A powerful strategic advantage for a globalized firm is lowered cost factors in production.

Question 19

The collapse of the Eastern block has speeded the growth of a world culture.

Question 20

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

Question 21

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.

Question 22

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.

Question 23

Global coordination of all of the major business functions permits the location of business activity according to

A) social norms and values.
B) comparative advantage.
C) competitive threat.
D) knowledge base.

Question 24

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

A) shortages of skilled consultants
B) language differences
C) different telecommunication standards
D) different data transfer speeds

Question 25

Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?

A) Free Trade Agreement
B) European Union Data Protection Directive
C) United Nations Privacy Act
D) European Transborder Data Flow Act

Question 26

German companies

A) do not recognize the profit until the project is completely finished and they have been paid.
B) recognize profits before the project is finished.
C) recognize profits when the project is initialized.
D) do not recognize the profits until they have been formally audited.

Question 27

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.

Question 28

Which of the following is not one of the primary types of system configuration discussed in the chapter?

A) decentralized
B) duplicated
C) coordinated
D) networked

Question 29

In terms of global business strategy and structure, a domestic exporter will use a policy of

A) some dispersed sales, with centralized production, accounting, human resources, and strategic management.
B) centralized production and accounting with decentralized marketing and human resources.
C) centralized production, accounting, marketing, and human resources.
D) dispersed production and marketing, with centralized accounting, human resources and strategic management.

Question 30

Most large companies with overseas operations have inherited

A) recently built technology platforms for international systems.
B) batch-oriented reporting from independent foreign divisions to corporate headquarters.
C) transaction-oriented reporting based at the home office for overseas business.
D) global marketing systems developed domestically.

Question 31

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.

Question 32

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

Question 33

A force in the environment to which businesses must respond and that influences the direction of the business is called a business

A) driver.
B) threat.
C) process.
D) matrix.

Question 34

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

Question 35

Which of the following is not one of the three kinds of organizational governance used by global companies?

A) centralized
B) decentralized
C) coordinated
D) localized

Question 36

General challenges and obstacles to global business systems are typified by

A) different technology standards, shortages of skilled consultants, and social expectations.
B) brand-name expectations, language differences, and commercial regulations.
C) different work hours, transborder data and privacy laws, and different technology standards.
D) different communications standards, language differences, and network reliability.

Question 37

Most companies pursuing a global strategy begin as

A) domestic exporters.
B) multinationals.
C) franchisers.
D) transnationals.

Question 38

General cultural factors driving global business are

A) global communication and transportation technologies, a global knowledge base, and global social norms.
B) the development of global markets, political stability, and a global workforce.
C) the rise of the global workforce, political stability, and a global knowledge base.
D) the rise of a global workforce, global economies of scale, and global production and operations.

Question 39

Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?

A) choosing a global strategy
B) organizing the global business structure
C) organizing the systems management
D) defining the global environment

Question 40

The major dimensions of international systems architecture include each of the following except

A) the global environment.
B) corporate global strategy.
C) technology platform.
D) transborder data flows.

Question 41

Of the following, which is not one of the three central principles recommended in this chapter for a firm organizing itself for international business?

A) Organize value-adding activities along lines of comparative advantage.
B) Establish a single office responsible for international systems and a global CIO position.
C) Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
D) Develop and operate systems units at each level of corporate activity regional, national, and international.

Question 42

Multinational companies tend to have ________ systems.

A) duplicated
B) centralized
C) networked
D) decentralized

Question 43

Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?

A) only systems that support functions that are absolutely critical to the organization
B) core systems and worthwhile provincial systems
C) core systems and any financial systems that can be easily integrated with each other
D) financial and accounting systems

Question 44

As a firm moves from local option systems to regional and global systems

A) agency costs increase.
B) coordination costs decrease.
C) transaction costs increase.
D) both transaction and agency costs increase.

Question 45

Domestic exporters typically have highly ________ systems.

A) duplicated
B) centralized
C) networked
D) decentralized

Question 46

In duplicated systems

A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.

Question 47

In decentralized systems

A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.

Question 48

Based on your reading of the chapter, why should companies avoid creating an all-encompassing, new global system when moving towards global operations?

A) These may fail due to lack of visibility.
B) It is difficult to quantify and explain the benefits of information systems that are that large.
C) "Grand design" approaches typically fail to identify centers of excellence.
D) Opposition is strengthened because of requirements for huge resources.

Question 49

Logically related tasks to produce specific business results best defines

A) information systems.
B) business processes.
C) SOPs.
D) core competencies.

Question 50

Transnational companies have tended to use a ________ systems configuration.

A) duplicated
B) centralized
C) networked
D) decentralized

Question 51

Effective networked systems must have a

A) powerful telecommunications backbone.
B) culture of shared applications development.
C) shared management culture that crosses cultural barriers.
D) both B and C.
E) A, B, and C.
F) none of the above.

Question 52

The ability of global systems to optimize the use of corporate funds over a much larger capital base means that

A) capital in a surplus region can be moved efficiently to expand production of capital-starved regions.
B) capital costs can be accounted or spread over a larger base of constituents.
C) costs can be amortized over a larger customer base.
D) value chains can be synchronized more effectively.

Question 53

In centralized systems

A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) systems development and operations occur totally at the domestic home base.

Question 54

In networked systems

A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.

Question 55

Which of the following is not one of the main benefits to implementing global systems?

A) superior management and coordination
B) vast improvements in operation
C) new economies of scale at production facilities
D) reduced hardware costs

Question 56

The network systems structure is the most visible in ________ services.

A) production
B) financial
C) marketing
D) software design

Question 57

Which of the following is not one of the principal management challenges in developing global systems?

A) encouraging local users to support global systems
B) coordinating applications development
C) defining an acceptable test plan
D) agreeing on common user requirements

Question 58

The way to identify core business processes is to conduct a

A) cost-benefit analysis.
B) work-flow analysis.
C) business process analysis.
D) feasibility analysis.

Question 59

Franchise companies have typically had ________ systems.

A) duplicated
B) centralized
C) networked
D) decentralized

Question 60

Two of the management challenges in developing global systems are listed in your text as

A) (1) managing the privacy concerns of different countries and (2) coordinating applications development.
B) (1) creating a financial structure that will operate internationally and (2) managing the privacy concerns of different countries.
C) (1) agreeing on common user requirements and (2) managing the privacy concerns of different countries.
D) (1) coordinating software releases and (2) introducing changes in business processes.

Question 61

Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis?

A) TPS systems
B) EDI systems
C) CRM systems
D) none of the above

Question 62

The global ________ created by television, the Internet, and other globally shared media permits different peoples around the world to develop common expectations and values.

Question 63

________ is defined as bringing the opposing local organization groups into the process of designing and implementing an information systems solution without giving up control over the direction and nature of the change.

Question 64

Software localization is the process of

A) translating a user interface into a second language.
B) converting software programming to run on a different platform.
C) converting software to operate in a second language and with local conventions.
D) modifying software so that it can be adopted in other countries without engineering changes.

Question 65

Global markets, production, and administration create the conditions for powerful global economies of ________.

Question 66

In relation to global systems building, the Internet

A) allows the seamless flow of information through the enterprise.
B) affords local groups stable broadband access.
C) has reduced some networking problems.
D) all of the above.

Question 67

________ is defined as the extent to which your authority is accepted on grounds of competence, vision, or other qualities.

Question 68

The movement of information across international boundaries is called ________.

Question 69

The chapter outlines three steps in developing an effective global system solution. Which of the following is not one of these steps?

A) Identify outdated legacy systems to be replaced.
B) Identify the core systems to coordinate centrally.
C) Choose a developmental approach: incremental, evolutionary, or other.
D) Define the core business processes.

Question 70

A(n) ________ is formed by consumers around the world who are interested in consuming similar products that are culturally approved.

Question 71

VPNs

A) use the public Internet for communications.
B) may not be able to support large numbers of remote users, due to the variable traffic on the Internet.
C) provide many of the same services as private networks.
D) all of the above.

Question 72

________ firms have no single national headquarters but have many regional headquarters and perhaps a world headquarters.

Question 73

When developing a global system, bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called

A) cooptation.
B) change management.
C) implementation.
D) advocacy.

Question 74

Sixty-eight percent of the world's mobile phone subscriptions are in

A) developing countries.
B) Europe.
C) the United States.
D) the United States and Canada.

Question 75

________ systems support functions that are absolutely critical to the organization.

Question 76

A(n) international information systems ________ consists of the basic information systems required by organizations to coordinate worldwide trade and other activities.

Question 77

Japanese consumers who only want to purchase products made in Japan are an example of cultural ________.

Question 78

A global firm can develop transnational centers of excellence as an effective technique to

A) ensure connectivity between regional systems.
B) encourage user support of global systems.
C) effectively identify global business processes.
D) develop a merit-based hierarchy among regional groups.

Question 79

A critical necessity for ensuring the integration of local systems into a global system is

A) adherence to data and technical standards.
B) use of standard hardware at the local level.
C) use of standard user software at the local level.
D) all of the above.

Question 80

Which of the following is not one of the principal problems of international networks?

A) network capacity
B) poor quality of international service
C) network standards
D) regulatory constraints