Question 1

There is general agreement that the matrix design is the single best organization structure for global marketing.

Accepted Answer

There is no consensus that the matrix design is the best organizational structure for global marketing, as the effectiveness of organizational structures varies based on the company's size, strategy, and market environment. Different companies may find success with different structures such as global, multi-domestic, international, or transnational models depending on their specific needs and challenges.

Question 2

A key issue in global organization is when to achieve balance between autonomy and integration.

Accepted Answer

The answer of A key issue in global organization is...

Question 3

When Hershey created its international division in 2005, J.P. Bilbrey, the division's senior vice president, noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States.

Accepted Answer

J.P. Bilbrey stated that Hershey would no longer use the extension strategy of exporting its chocolate products from the United States.

Question 4

Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except:

Accepted Answer

The new matrix organization design for Boeing's commercial transport engineers is expected to provide benefits such as lower costs, facilitate problem solving, unite engineering and manufacturing processes, and enhance product consistency. However, there is no mention of it providing customer contacts as a direct benefit.

Question 5

The matrix organization is inappropriate when the market is demanding.

Accepted Answer

The matrix organization, which combines functional and project-based structures, can be particularly effective in dynamic and demanding market environments. It allows for flexibility, efficient resource allocation, and the ability to respond quickly to market changes by leveraging expertise across different functions.

Question 6

The increasing importance of the European Union (EU) as a regional market has prompted a number of companies to change their organizational structures by setting up regional headquarters there.

Accepted Answer

The statement is true. The EU is one of the world's largest economic areas, and many companies have established regional headquarters there to take advantage of its sizable and growing market.

Question 7

No single correct organizational structure exists for global marketing.

Accepted Answer

There is no one-size-fits-all organizational structure for global marketing as it depends on various factors such as the company's goals, products/services, markets, culture, and resources. Therefore, different companies may adopt different structures based on their specific needs and circumstances.

Question 8

A potential advantage of the organization on product basis is that the local input from individual country managers may not be ignored, with the result that products will be sufficiently tailored to local markets.

Accepted Answer

The answer of A potential advantage of the organization on...

Question 9

By the early 2000s, Sony was faltering due to the rapid consumer acceptance of flat-panel wide-screen TV sets.

Accepted Answer

The answer of By the early 2000s, Sony was faltering...

Question 10

Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis:

Accepted Answer

The answer of Having established that the matrix organizational structure...

Question 11

Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?

Accepted Answer

ABB announced the dissolution of its matrix structure to enhance speed and efficiency through a more focused and flattened organizational hierarchy.

Question 12

As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to stick to the traditional organization patterns.

Accepted Answer

As markets globalize and as competition increases, Japanese companies are likely to adopt more diverse and flexible organizational patterns in order to stay competitive. This may include incorporating practices from other countries and cultures, as well as adopting more innovative structures and management styles. Therefore, it is unlikely that Japanese companies will stick solely to traditional organizational patterns.

Question 13

The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.

Accepted Answer

The answer of The matrix organization requires fundamental changes in...

Question 14

The organization design in which an employee reports to both a country manager and a functional manager is a(n):

Accepted Answer

This type of organization design is called a matrix structure, where employees report to both a country manager and a functional manager. This allows for a dual reporting structure and ensures that both local and global needs are met.

Question 15

The key to successful matrix management is ensuring that managers are able to:

Accepted Answer

The most critical aspect of matrix management is the ability to manage conflicts and achieve integration. Since matrix management can lead to conflicting priorities, interests, and goals and overlapping roles and responsibilities, resolving conflicts effectively is essential. Successful matrix managers need to have excellent communication and problem-solving skills to manage the inherent complexities of a matrix structure to ensure that their team achieves its objectives.

Question 16

Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

Accepted Answer

This statement is true. Silos, stovepipes, and chimneys are all commonly used metaphors to describe an organization that lacks coordination and collaboration among its various departments or business units. In such organizations, each autonomous unit tends to focus primarily on its own goals and objectives, rather than on the broader objectives of the organization as a whole. This can lead to inefficiencies, duplication of efforts, and missed opportunities for synergy and collaboration.

Question 17

A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.

Accepted Answer

A CEO should consider the global economy but must also factor in the company's strengths, target market, competitive advantage, and strategic fit rather than aiming to capture the biggest market share in every region, which may not be feasible or strategic for every company.

Question 18

Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing declining sales of traditional electronics products, whereas Apple and Samsung have risen to prominence in the competitive landscape once dominated by the Chinese.

Accepted Answer

Sony, Sharp, Panasonic, and other Japanese manufacturers have faced challenges in the electronics market, but it's not accurate to say that Apple and Samsung's rise to prominence was in a landscape once dominated by the Chinese. Apple and Samsung are South Korean and American companies, respectively, and their rise has been more directly in competition with Japanese firms rather than Chinese companies dominating the landscape.

Question 19

Des Moines, Iowa-based Meredith Corporation participates in international markets by means of foreign licensing agreements that are administered by a copyrights and contracts manager.

Accepted Answer

The statement accurately describes how Meredith Corporation participates in international markets.

Question 20

Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?

Accepted Answer

A matrix structure is best capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge because it combines multiple dimensions of specialized knowledge within a single structure. The matrix structure facilitates the management of complex projects and global operations by bringing together diverse teams with different expertise and perspectives. This structure promotes collaboration and cross-functional integration, which allows the organization to leverage its strengths in various areas to achieve a common goal.

Quiz 17: Leadership, Organization, and Corporate Social Responsibility