Deck 15: Managing Global Systems

Question 1

The emergence of a global media culture is an important driver of global trade.

Answer 1

True

Question 2

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

A)Global communication and transportation technologies
B)Political stability
C)Global knowledge base
D)Rise of shared values
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

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

Question 5

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 6

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 7

The EU General Data Protection Regulation (GDPR):

A)requires that European companies meet U.S.data privacy standards.
B)provides additional privacy protections for Americans doing business in Europe.
C)provides additional privacy protection for European citizens and applies to all data produced by EU citizens or processed in Europe.
D)prevents the transfer of private personal information among EU nations.
E)allows European countries to adopt their own privacy legislation.

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

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 10

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 11

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 12

Consumers who only want to purchase products made in their own country 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 13

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

A)The European Data Directive of 1998 standardized privacy protection among EU nations.
B)The European Data Directive of 1998 allowed for the transfer of personal data to systems located in the United States and other nations where these systems met European privacy standards.
C)The General Data Protection Regulation (GDPR)provides additional privacy protection for European citizens and applies to all data produced by EU citizens.
D)The GDPR applies to all companies collecting data on EU citizens even if they are not located in the EU.
E)The GDPR applies only to citizens of the EU and does not apply to non-citizen residents.

Question 14

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 15

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 16

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

Question 17

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 18

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 19

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 20

Which of the following industries is most affected by globalization?

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

Question 21

The shortage of skilled consultants is one challenging obstacle to global business systems.

Question 22

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 23

A powerful strategic advantage for a globalized firm is the ability to charge different prices for the same product in different countries.

Question 24

Micromarketing involves marketing to specific countries rather than global markets.

Question 25

Most companies pursuing a global strategy begin as:

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

Language remains a significant challenge to businesses operating on a global scale.

Question 32

In a multinational business strategy,the finance/accounting function is:

A)centralized.
B)dispersed.
C)coordinated.
D)mixed.
E)performed by local divisions in different countries.

Question 33

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 34

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

Question 35

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

Question 36

The EU General Data Protection Regulation (GDPR)applies to all data produced by EU citizens,whether or not the company collecting the data in question is located within the EU,as well as all people whose data is stored within the EU,whether or not they are actually EU citizens.

Question 37

Accounting practices are largely standard among developed countries.

Question 38

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

Question 39

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

Question 40

In terms of global business strategy and structure,a domestic exporter strategy:

A)centralizes production,accounting,human resources,and strategic management,and uses a mixed model of sales and marketing.
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 41

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 42

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 43

In a transnational business strategy,nearly all the value-adding activities are managed from a global perspective without reference to national borders,optimizing sources of supply and demand wherever they appear,and taking advantage of any local competitive advantages.

Question 44

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 45

Multinational companies tend to dominantly have ________ systems.

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

Question 46

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

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

Question 47

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 48

Domestic exporters typically have highly ________ systems.

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

Question 49

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

A)Centralized
B)Duplicated
C)Decentralized
D)Federal structure
E)Localized

Question 50

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 51

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 52

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 53

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 54

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 multinational firms.

Question 55

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)coordinated production,marketing,and human resources,with centralized strategic management and finance/accounting.
E)decentralized production,accounting,human resources,with a decentralized management.

Question 56

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 57

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 58

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 59

Franchise companies have typically had ________ systems.

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

Question 60

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 61

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

A)Agreeing on common user requirements
B)Finding a provider of global software
C)Introducing changes in business processes
D)Coordinating applications development
E)Coordinating software releases

Question 62

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

Question 63

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

Question 64

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 65

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

Question 66

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 67

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 68

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 and software costs
E)Optimization of the use of corporate funds

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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 74

In a franchiser business strategy,each foreign unit uses the same systems developed by the firm regardless of their location.

Question 75

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

A)Identify which local systems need 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 76

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 77

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 78

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 79

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 80

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.