Deck 15: Managing Global Systems

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

Developing international networks has few problems today because of the global acceptance of Internet standards.

Question 11

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

Question 12

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

Question 13

Accounting practices can vary significantly from country to country.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

In a duplicated systems building strategy, each foreign unit designs its own solutions and systems.

Question 20

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

Question 21

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 22

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 23

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 24

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 25

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 26

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 27

All of the following present challenges to developing a global business except

A) foreign accounting practices.
B) production costs.
C) language differences.
D) exchange rates.

Question 28

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 29

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 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

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

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

Question 32

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 33

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 34

Most companies pursuing a global strategy begin as

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

Question 35

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 36

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 37

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 38

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 39

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 40

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 41

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 42

Franchise companies have typically had ________ systems.

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

Question 43

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

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

Question 44

From your reading of the chapter case, which of the following best describes the challenge Primark 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) diverse information systems throughout foreign units
D) managing a global supply chain

Question 45

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 46

Which of the following is not one of the principle 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 47

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 48

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 49

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 50

Domestic exporters typically have highly ________ systems.

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

Question 51

Transnational companies have tended to use a ________ systems configuration.

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

Question 52

Multinational companies tend to have ________ systems.

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

Question 53

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

A) functional areas.
B) core business processes.
C) SOPs.
D) core competencies.

Question 54

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 55

In cooptation

A) the new global system replaces all unit systems, including systems in the home territory.
B) the systems used on the company's home country are modified to communicate with the systems of foreign units so that each unit can retain their unique business processes.
C) the systems of specific foreign units are chosen to duplicate for use by other units.
D) opponents to a planned global system are brought into the process of designing and implementing the solution.

Question 56

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 57

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 58

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 59

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 60

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 61

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

Question 62

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 63

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

Question 64

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 65

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

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

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 68

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

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

Question 69

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 70

In developing countries, use of the Internet is limited by all of the following except

A) use of mobile telephones.
B) high cost of PCs.
C) poor bandwidth capacity.
D) unreliable power grids.

Question 71

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 72

________ 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 73

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

Question 74

The movement of information across international boundaries is called ________.

Question 75

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 76

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 77

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

Question 78

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

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

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