Deck 16: Organizing for Global Marketing

Question 1

Oil services company Halliburton moved its global headquarters from Houston to Moscow to be closer to the growing Russian market.

Answer 1

False

Question 2

The structure of an international organization should be congruent with the tasks to be performed,the need for product knowledge,and the need for market knowledge.

Answer 2

True

Question 3

Some polycentric firms have a national focus,and some have a regional focus.

Answer 3

True

Question 4

As sales to foreign markets become more important,a company often replaces its export department with an international division.

Question 5

Some polycentric firms have a regional rather than a national focus.

Question 6

Oil services company Halliburton moved its global headquarters from Houston to Dubai to be closer to its Middle East business.

Question 7

Since the Internet,global managers no longer need to travel overseas to engage in face-to-face conversations.

Question 8

An export department is appropriate once export sales exceed 25 percent of a firm's total sales.

Question 9

Changing a firm's mission statement can result in organizational change.

Question 10

Geocentric and ethnocentric organizations have nothing in common.

Question 11

The volume of international sales does not affect the organizational structure of a firm.

Question 12

As sales to foreign markets become more important,a company often replaces its export department with an international specialist.

Question 13

A geocentric orientation returns power to global headquarters and centers on global markets as a whole.

Question 14

Strategy statements should not be part of a company's mission statement.

Question 15

The proper organizational structure for a firm never changes,and it is determined by the industry.

Question 16

Time zones can be an external force that determine how global organizations are managed.

Question 17

In a polycentric orientation,management is centered on the home market and ideas that emanate from there are considered superior.

Question 18

Firms with key global customers should centralize their office locations in the triad markets.

Question 19

Many German MNCs keep tight centralized control over important subsidiaries such as those in the U.S.

Question 20

An export department is appropriate when international sales account for 1 to 10 percent of a firm's total sales.

Question 21

With product-based organizational structures,companies can be most sensitive to local market conditions.

Question 22

Country-based organizations are similar to region-based organizations except that the focus is on single countries rather than on a group of countries.

Question 23

Conflict between headquarters and subsidiaries is always bad.

Question 24

In a matrix organizational structure,there is dual or multiple lines of command,with individuals reporting to more than one superior.

Question 25

When companies begin selling products to foreign markets,they need to have well funded international divisions.

Question 26

Management often adds global mandates to its domestic organization as inquiries increase from abroad.

Question 27

Matrix organizations are simple and less expensive for the company to maintain.

Question 28

When the volume of international sales increases,companies move from having an international division to an export department.

Question 29

Organizing a company into marketing,production,accounting,and research and development units is known as a product-based organizational structure.

Question 30

The United States,Britain,and Australia can be grouped together in a regional organizational structure because English is the first language in all of these countries.

Question 31

"Beat Xerox" was the slogan for

A)Komatsu.
B)Canon.
C)Hyundai.
D)Fuji.

Question 32

Global mandates may be temporary in nature.

Question 33

A firm with a few key global customers can adjust its organizational structure by locating offices next to its customers.

Question 34

Effective communication systems are needed for global strategies that require standardization and coordination across borders.

Question 35

Product-based organizational structures are suited for companies with several unrelated product lines.

Question 36

International divisions are proactive compared to export departments and actively seek out market opportunities in foreign countries.

Question 37

Using a regional organization is the best way to eliminate duplication of functions in a global firm.

Question 38

Power struggles are a common problem when matrix structures are introduced within a global firm.

Question 39

The key to correcting deviations in a control strategy is to get managers to understand and agree with the standards.

Question 40

Regionalizing manufacturing operations may be part of a regional geographic approach to organizational design.

Question 41

As management in domestic firms recognizes the potential in international markets,____ are often added to the domestic organization.

A)global mandates
B)geocentric specialists
C)polycentric specialists
D)international specialists

Question 42

Western European and U.S.-based firms find ____ attractive for operations in Central and Eastern Europe.

A)polycentrism
B)regional management centers
C)global mandates
D)functional organizations

Question 43

Regional management centers are a form of a(n)

A)country-based organization.
B)geographic organization.
C)international division.
D)functional organization.

Question 44

What do geocentric and ethnocentric firms have in common?

A)Decision making is centralized.
B)Input from subsidiaries is not appreciated.
C)Decision making is at the regional rather than at the national level.
D)None of the above.

Question 45

In a firm with an ethnocentric orientation,

A)ideas from the home market are considered superior to those of subsidiaries.
B)each market is considered unique.
C)the firm centers on the global market as a whole.
D)All of the above.

Question 46

"Ford 2000" is an example of a global firm adopting a ____ structure.

A)regional
B)country-based
C)product
D)functional

Question 47

Physical distances become a barrier and influence organizational structure when operating in

A)Japan.
B)developed nations.
C)countries with poor telecommunications.
D)All of the above.

Question 48

If headquarters tells its foreign subsidiaries what to do and solicits little input,it is said to be

A)ethnocentric.
B)multinational.
C)polycentric.
D)geocentric.

Question 49

A product organizational structure is suited for companies

A)that have several unrelated product lines.
B)with homogeneous product lines.
C)targeting similar markets.
D)that have production in only one country.

Question 50

Asian firms increasingly hire American managers to

A)be in accordance with international law.
B)spur corporate change.
C)replace Europeans.
D)save money overseas

Question 51

When management of a multinational firm remains centered on its home market,it is said to be

A)domesticated.
B)ethnocentric.
C)multinational.
D)geocentric.

Question 52

Which of the following is not an internal force that affects organizational structure?

A)Firm's commitment of financial resources to international efforts
B)Importance of international sales to the firm
C)Diversity of international markets served
D)Geographic concentration of the firm's customers

Question 53

Which of the following is an internal force that affects an international organization?

A)Geographical distance between headquarters and its subsidiaries
B)The percentage of the firm's sales that are international
C)Customer profiles
D)Government regulations

Question 54

Who might report to the head of an international division?

A)Sales managers
B)Marketing managers
C)Production managers
D)All of the above

Question 55

Which of the following can discourage a company from establishing a subsidiary in a country?

A)Local laws
B)Statutory holidays
C)Political risk
D)All of the above

Question 56

Which of the following can discourage a company from establishing a management center in a country?

A)Local laws
B)Statutory holidays
C)Political risk
D)All of the above

Question 57

____ firms give local subsidiaries great leeway to develop and to implement their own strategies.

A)Ethnocentric
B)French
C)Polycentric
D)Global

Question 58

Firms prefer international divisions over export departments when

A)their export volumes are small.
B)the volume of exports increases.
C)exchange rates fluctuate rapidly.
D)political risk is high.

Question 59

Which is not associated with a global organization?

A)International division
B)Regional management centers
C)Product organizational structures
D)Functional organizational structures

Question 60

When a firm considers each national market to be unique,it is said to be

A)ethnocentric.
B)multinational.
C)polycentric.
D)geocentric.

Question 61

Alice Adams' U.K.-based family business exports 4 percent of its total sales to other countries within the EU.The business has no other operations abroad.Which organization for international sales would you suggest the company adopt?

A)Regional organization
B)Country-based organization
C)Global product organization
D)Export department

Question 62

Canon Car Mirrors has 14 overseas subsidiaries each of which has its own plant and largely determines is own product lines and marketing programs.Canon most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Global

Question 63

For many years Swiss Pharmaceuticals centralized decision-making in Zurich,and Swiss managers made virtually all major decisions for the company's 64 foreign subsidiaries.Decision-making is still centralized,but subsidiaries are closely involved in global product development and global theme advertising campaigns.The firm's orientation has changed from

A)geocentric to global.
B)polycentric to ethnocentric.
C)ethnocentric to geocentric.
D)No change has occurred.

Question 64

An expressed assignment to carry out a task on a global scale is referred to as a(n)____ mandate.

A)matrix
B)ethnocentric
C)polycentric
D)global

Question 65

Texas Taffy is developing a new Southwest-flavor line of candy for simultaneous launch in Mexico and the United States.Managers from both its U.S.headquarters and its Mexican subsidiary are involved in product development for this line.Texas Taffy most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Product

Question 66

Foreign managers are most likely to reach CEO status in MNCs whose home country is

A)a developing country.
B)France.
C)Japan.
D)the U.S.A.

Question 67

MabHill's manager in Malaysia successfully launched a new product that was developed in the Malaysian plant.However,he cannot generate any interest in the product back at global headquarters.Headquarters just isn't interested in an utilizing an idea from Malaysia in any of its other subsidiaries.Most likely the firm adheres to which orientation?

A)Product
B)Production
C)Geocentric
D)Polycentric

Question 68

Sam Nitan's family business exports 3% of its total sales.The business has no other operations abroad.Which organization for international sales would you suggest the company adopt?

A)Export department
B)Export functional organization
C)International department
D)Global product organization

Question 69

The main advantage for a born-global firm over a traditional firm is

A)it has extensive market knowledge.
B)it can adopt a global organizational structure early.
C)its well-trained and experienced managers.
D)None of the above.

Question 70

U.S.-based Tin City Bicycles is about to undertake a global roll-out of a new bicycle developed in their Indian subsidiary.Tin city most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Market

Question 71

When Taiwan Graphics first entered Indonesia,all decisions for the new market were made in Taiwan.Now all decisions for Indonesia are made by the subsidiary there.Taiwan Graphics has changed orientations from

A)geocentric to polycentric.
B)polycentric to ethnocentric.
C)ethnocentric to polycentric.
D)polycentric to geocentric.

Question 72

Which of the following is a two-dimensional organizational structure?

A)Functional
B)Product-based
C)Region-based
D)Matrix

Question 73

An organizational advantage of a born-global firm over a traditional multinational firm is it

A)can operate like an export department.
B)has more experience in overseas markets.
C)can adopt a global organizational structure from the start and avoid disruptions of reorganizations.
D)is assured of a polycentric orientation from its inception.

Question 74

Ben Smith's U.S.-based family business exports 5 percent of its total sales to either Canada or Mexico.The business has no other operations abroad.Which organization for international sales would you suggest the company adopt?

A)Country-based organization
B)Export department
C)International division
D)Regional organization

Question 75

Carol Miller's family business exports 3 percent of its total sales.The business has no other operations abroad.Which organization for international sales would you suggest the company adopt?

A)Functional organization
B)International department
C)Global product organization
D)Export department

Question 76

Tunetoy Industries exports products overseas and has no manufacturing abroad.U.S.-based managers are sent to oversee foreign marketing subsidiaries.Tunetoy most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Global

Question 77

Karavel Foods expects its foreign subsidiaries to show profits and growth every year.As long as they do this,headquarters lets subsidiaries do what they want.Karavel most likely adheres to which orientation?

A)Ethnocentric
B)Global
C)Polycentric
D)Portfolio

Question 78

Taberet believes that the world can be divided into 5 regional markets: North America,South America,Europe,Asia,and the Middle East/Africa.Each region is given a great deal of autonomy within Taberet.Taberet most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)None of the above

Question 79

Tunetoy Industries participates in 4 distinct industries,each with its own customers and competitors.Manufacturing economies of scale are high in all these industries and trade barriers are minimal.As a result,Tunetoy needs only one or two plants in each industry to serve the global market.International sales account for 60% of total firm sales.Which organization do you suggest for Tunetoy?

A)Export department
B)International division
C)Global product organization
D)Global production organization

Question 80

French Bakery Breads believes that every national market is unique in terms of competition and consumer behavior and a local national is the best choice to run a subsidiary and make its key marketing decisions.French Bakery Breads most likely adheres to which orientation?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Global