Deck 15: Managing Global Systems

Question 1

From your reading of the chapter case,which of the following best describes the challenge Dunlop Aircraft Tyres was facing as a global company?

A)Inadequate information for managerial decision making
B)Lack of buy-in for global systems by foreign units
C)Fragmented legacy systems and data without proper integration
D)Poor governance of information systems
E)Managing a global supply chain

Answer 1

C

Question 2

Which of the following is not a general cultural factor driving global business?

A)Global communication and transportation technologies
B)Political instability
C)Global knowledge base
D)Global culture
E)Global social norms

Answer 2

D

Question 3

What is the first thing you should consider when thinking about building an international information system?

A)The state of world politics
B)New technologies that will help you achieve your goals
C)The global environment where your business will operate,and identify the business drivers for your firm and industry
D)The business challenges you face in the global environment
E)The different computing and communication standards in the world

Answer 3

C

Question 4

Which of the following is the best definition of international information systems?

A)Systems that talk to one another using the global Internet
B)Systems used by international businesses
C)Business processes that span the globe
D)Basic information systems required by organizations to coordinate worldwide trade and other activities
E)Systems that are developed by global firms

Question 5

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

Question 6

Most large companies with overseas operations have inherited:

A)recently built technology platforms for international systems.
B)patchwork international systems from the distant past.
C)transaction-oriented reporting based at the home office for overseas business.
D)global marketing systems developed domestically.
E)enterprise systems developed by local firms.

Question 7

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

Question 8

New levels of global coordination of all of the major business functions permit the location of business activity according to:

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

Question 9

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.
E)management and business processes.

Question 10

Japanese consumers who only want to purchase products made in Japan are an example of:

A)cultural particularism.
B)political culture.
C)universal global attitudes.
D)different laws in different countries.
E)different business standards.

Question 11

Final assembly of Apple's iPhone occurs in which of the following locations?

A)United States
B)Japan
C)South Korea
D)China
E)Germany

Question 12

Which of the following statements about transborder data flow is not true?

A)The E.U.-U.S.Privacy Shield replaces previous agreements between the United States and the EU with respect to transborder data flow.
B)Privacy Shield provides additional privacy protection for U.S.citizens.
C)Privacy Shield protects European citizens from certain surveillance activities of U.S.national security agencies.
D)U)S.firms must register with European privacy regulators in order to process personal information of European citizens in the United States.
E)European countries have different laws concerning transborder data flow and privacy than the United States.

Question 13

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

A)localization.
B)cooptation.
C)particularism.
D)prejudice.
E)globalization.

Question 14

Which of the following statements about accounting practices in different countries is not true?

A)German companies generally do not recognize a profit from a venture until the project is completely finished and they have been paid.
B)British firms recognize profits before a project is finished,once they are reasonably certain they will get the money.
C)Dutch firms separate tax calculations from reports to shareholders.
D)U)S.accounting practices focus on demonstrating compliance with strict rules.
E)British firms focus on showing shareholders how fast profits are growing.

Question 15

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.

Question 16

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

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

Question 18

The collapse of the Eastern bloc has retarded the growth of a world culture.

Question 19

Transborder data flow refers to:

A)the flow of information in international systems.
B)the ways in which a country's laws change the flow of data from one country to another.
C)the business of moving information from one country to another.
D)the movement of information across international boundaries.
E)the business process of coordinating information from many different countries.

Question 20

Which of the following industries is most affected by globalization?

A)Telecommunications
B)Manufacturing
C)Law
D)Entertainment
E)Transportation

Question 21

Define transborder data flow and explain what makes it a business challenge for global companies.

Question 22

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.

Question 23

The growth of powerful communications technologies and the emergence of world cultures have failed to create a foundation for global markets.

Question 24

Most companies pursuing a global strategy begin as:

A)domestic exporters.
B)multinationals.
C)franchisers.
D)transnationals.
E)conglomerate corporations.

Question 25

Accounting practices can vary significantly from country to country.

Question 26

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

Question 27

Micromarketing involves marketing to very small geographic and social units.

Question 28

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

Question 29

To comply with European privacy laws,many multinational firms have developed information systems within each European country.

Question 30

How do cultural,legal,political,and social expectations affect global business?

Question 31

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

Question 32

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

Question 33

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

Question 34

What steps should you take to develop an international information systems architecture?

Question 35

The growth of international trade has radically altered domestic economies around the globe.

Question 36

In a multinational business strategy,the ________ business function is decentralized and dispersed among foreign units.

A)finance/accounting
B)production
C)human resources
D)strategic management
E)sales/marketing

Question 37

List at least four general cultural factors and four specific business factors driving global business.Which two factors (one of each)do you feel are most problematic at the current moment? Why?

Question 38

What are the four specific types of business challenges to global business systems? Which one do you think will be easiest to solve? Why?

Question 39

Global economies of scale are facilitated by global markets,production,and administration.

Question 40

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

Question 41

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.

Question 42

Domestic exporters typically have highly ________ systems.

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

Question 43

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

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

Question 44

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

Question 45

Which of the following statements about transnational firms is not true?

A)Transnational firms have many regional headquarters and perhaps a world headquarters.
B)Transnational firms are stateless.
C)Transnational firms view the entire globe as their management frame of reference.
D)Transnational firms have no single headquarters.
E)Many firms have attained transnational status.

Question 46

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.
E)systems development is a combined effort of domestic and international units.

Question 47

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

Question 48

Which of the following is the dominant pattern of the system configurations used by transnational firms?

A)Centralized
B)Duplicated
C)Decentralized
D)Networked
E)Localized

Question 49

Multinational companies tend to dominantly have ________ systems.

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

Question 50

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

Question 51

Franchise companies have typically had ________ systems.

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

Question 52

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.
E)development occurs at the home base but operations are handed over to autonomous units in foreign locations.

Question 53

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

Question 54

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.

Question 55

Which of the following statements about networked systems is not true?

A)Networked systems require a powerful telecommunications backbone.
B)Networked systems require a culture of shared applications development.
C)Networked systems require a shared management culture that crosses cultural barriers.
D)Networked systems are those in which there is a solid,singular global environment for developing and operating systems.
E)Networked systems are an emerging trend for domestic exporters.

Question 56

Which of the following is an emerging pattern of system configuration for multinational companies?

A)Duplicated
B)Centralized
C)Networked
D)Decentralized
E)Autonomous

Question 57

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.
E)all systems are designed in domestic headquarters and then distributed to foreign units.

Question 58

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
E)Organizing the business

Question 59

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.
E)systems development is a combined effort of domestic and international units which are then duplicated across the world.

Question 60

Of the following,which is one of the 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 multiple offices 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 the international level first.
E)Centralize production,but decentralize marketing and sales to be close to the customer.

Question 61

In order to define centers of excellence in a global firm,you first need to identify:

A)functional areas.
B)core business processes.
C)SOPs.
D)core competencies.
E)international best practices.

Question 62

Which of the following methods of encouraging local users to support global systems should be avoided as much as possible?

A)Permitting each country unit the opportunity to develop a transnational application first in its home territory and then throughout the world
B)Developing transnational centers of excellence
C)Requiring local units to agree on a short list of transnational systems
D)Using raw power
E)Involving users in the creation of the design without giving up control over the development of the project to parochial interests

Question 63

Transnational centers of excellence do all of the following except:

A)perform initial identification and specification of business processes.
B)define information requirements.
C)perform business and systems analysis.
D)accomplish all design and testing.
E)implement the system.

Question 64

Success as a change agent depends on legitimacy,authority,and ability to involve users in the change design process.

Question 65

Which of the following occurs 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.
E)All costs increase.

Question 66

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

A)Only some core 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
E)Systems that support decentralized units

Question 67

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

Question 68

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.

Question 69

Which of the following is not an important factor when implementing a global information system solution?

A)Agreeing on common user requirements
B)Understanding if your computer system can operate in a global environment
C)Introducing changes in business processes
D)Coordinating applications development
E)Coordinating software releases

Question 70

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

Question 71

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.
E)systems analysis.

Question 72

The chapter outlines four 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)Make the benefits clear
E)Define the core business processes

Question 73

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

Question 74

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

Question 75

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

Question 76

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
E)Introducing changes in business processes

Question 77

List and describe four types of systems configurations used by international firms to fit their global strategies.

Question 78

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
E)Optimization of the use of corporate funds

Question 79

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.
E)cooperation.

Question 80

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