Question 1

Global product division structure,which is the opposite of the geographic area structure,supports the transnational strategy.

Accepted Answer

False

Question 2

Centralized research and development guarantees persistent heterogeneity in the solutions generated by a company.

Accepted Answer

Centralized research and development often leads to uniformity in solutions due to a unified approach and decision-making process, rather than persistent heterogeneity.

Question 3

Which of the following is true of the business leader of a specific country (or a geographic region)?

Accepted Answer

Business leaders in a specific country or region often carry significant influence and weight in their geographic area due to their understanding of local markets, culture, and business practices.

Question 4

The positioning of the four strategic choices of multinational enterprises is not random.They develop from the relatively simple international division through either geographic area or global product division structures.

Accepted Answer

Multinational enterprises typically evolve their organizational structures based on strategic choices that align with their international operations, often starting with simpler structures and progressing to more complex ones like geographic or product divisions.

Question 5

The stakeholders of an MNE (employees and world governments)gain confidence in the global aspirations of the MNE when the upper echelon of management consists largely of one nationality.

Accepted Answer

A diverse upper echelon of management is generally seen as more favorable for global aspirations, as it reflects a broader understanding and inclusivity of different cultures and markets.

Question 6

Formally,organizational charts specify the scope of responsibilities for various parties.

Accepted Answer

Organizational charts visually represent the structure of an organization, detailing roles, responsibilities, and relationships between different positions and departments.

Question 7

_______ is an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures,particularly when adopting a transnational strategy.

Accepted Answer

The global matrix structure is designed to balance the benefits of geographic area and global product division structures, making it suitable for transnational strategies that require both global integration and local responsiveness.

Question 8

The two sets of pressures that multinational enterprises (MNEs)confront are _____.

Accepted Answer

Cost reduction and local responsiveness are the two sets of pressures that multinational enterprises (MNEs) confront.

Question 9

The global standardization strategy maximizes local responsiveness.

Accepted Answer

The global standardization strategy focuses on achieving economies of scale and efficiency by offering standardized products across different markets, which often reduces local responsiveness.

Question 10

Domestic and international competition share the pressure to reduce costs,but only domestic competition feels the pressure for local responsiveness.

Accepted Answer

Both domestic and international competition can feel the pressure for local responsiveness, as businesses need to adapt to local market conditions and consumer preferences in both contexts.

Question 11

What did Theodore Levitt argue in his 1983 article "The Globalization of Markets"?

Accepted Answer

Theodore Levitt argued that worldwide consumer tastes are converging, suggesting that companies should standardize their products to take advantage of global markets.

Question 12

When Henry Ford experimented with marketing "world car" designs,he was widely successful.

Accepted Answer

Henry Ford's attempt at creating a "world car" was not widely successful, as the concept faced challenges due to varying market preferences and regulations across different countries.

Question 13

A hallmark of transnational multinational enterprises is a high degree of interdependence and extensive and bi-directional flows of knowledge.

Accepted Answer

Transnational multinational enterprises are characterized by their interconnected operations across multiple countries, leading to significant interdependence and the exchange of knowledge and resources in multiple directions.

Question 14

Tacit knowledge is non-codifiable,and its acquisition and transfer require hands-on practice.

Accepted Answer

Tacit knowledge is personal and context-specific, making it difficult to formalize or communicate through written or verbal means, thus requiring experiential learning and practice for effective transfer.

Question 15

The business leader of a specific country (or a geographic region)is known as a(n)______:

Accepted Answer

A country manager is responsible for overseeing operations, strategy, and business activities within a specific country.

Question 16

Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive.

Accepted Answer

Transnational strategy involves balancing global efficiency and local responsiveness to adapt to different market conditions while reducing costs. Therefore, it aims to capture the best of both worlds.

Question 17

From a resource-based standpoint,a fundamental basis for competitive advantage is innovation-based firm homogeneity.

Accepted Answer

A resource-based view suggests that competitive advantage arises from firm heterogeneity, where unique resources and capabilities differentiate a firm from its competitors.

Question 18

A manager whose approach to knowledge management is to install a sophisticated information technology (IT)infrastructure is one of the most valuable assets to knowledge management.

Accepted Answer

A sophisticated IT infrastructure alone is not sufficient for effective knowledge management; it requires a combination of technology, processes, and people to manage and utilize knowledge effectively.

Question 19

Managers need to actively develop learning and innovation capabilities to leverage multinational presence.

Accepted Answer

Managers must develop learning and innovation capabilities to effectively utilize the diverse resources, knowledge, and opportunities available in multinational environments, which can enhance competitive advantage and organizational growth.

Question 20

Formal structures are easier to observe and imitate than informal structures.

Accepted Answer

Formal structures are documented and visible, such as organizational charts and official procedures, making them easier to observe and imitate compared to informal structures, which are based on unwritten social networks and relationships.

Quiz 12: Strategizing Structuring Learning Around The World