Question 1

The globalization strategy means that product design, manufacturing and marketing strategy are standardized throughout the world.

Accepted Answer

The statement is true. A globalization strategy involves standardizing product design, manufacturing, and marketing strategy to be consistent throughout the world.

Question 2

refers to the quality of collaboration across organizational units.

Accepted Answer

Integration refers to the quality of collaboration across organizational units, which is essential for achieving a coordinated and effective response to external environments. Power distance and uncertainty avoidance are cultural dimensions that capture differences in values and beliefs, while standardization and multidomestic standardization are strategies for managing consistency and efficiency within and across markets.

Question 3

Economies of scale means achieving higher costs through small volume production.

Accepted Answer

Economies of scale means achieving lower costs per unit through large volume production.

Question 4

is best identified as dividing the world into geographic regions, with each geographic region reporting to the CEO and each division has full control of functional activities within its region.

Accepted Answer

The described structure is known as a global geographic structure, where the world is divided into regions and each region operates as a separate division with control over its functional activities. This structure allows for responsiveness to local markets and customers, while still maintaining centralized control over the company's global operations.

Question 5

Which of the following is an inappropriate fit according to the Model to Fit Organization Structure to International Advantages?

Accepted Answer

The Model to Fit Organization Structure to International Advantages suggests that the structure of an organization should align with its strategic approach to international markets. A multidomestic strategy focuses on adapting products and services to fit local markets, which typically requires a more decentralized structure to respond to local needs and preferences effectively. An international division structure, however, is more suited for companies with a limited range of products or services in international markets, often used in the early stages of international expansion or for companies with a primary focus on their domestic market. This structure centralizes international activities in a separate division within the company, which may not provide the local responsiveness and autonomy needed for a successful multidomestic strategy.

Question 6

Which of the following is best identified with operations having standardization practices across country boundaries?

Accepted Answer

The answer of Which of the following is best identified...

Question 7

Benefits derived from inter-unit collaboration include all but which one of the following?

Accepted Answer

Increased inter-unit conflict is not a benefit of inter-unit collaboration; it is a potential negative consequence. The other options are all potential benefits of inter-unit collaboration.

Question 8

Which one of the following is not identified as being one of the primary segments of the global organizational challenge?

Accepted Answer

Standardization is not identified as one of the primary segments of the global organizational challenge. The other four options (complexity, transfer of knowledge, need for integration, differentiation) are identified as primary segments of the global organizational challenge.

Question 9

Which one of the following statements is least true regarding a global product structure?

Accepted Answer

The other statements are all true regarding a global product structure. Choice A describes the flexibility that division managers have in structuring their operations. Choice B describes the advantage of a global perspective for top managers. Choice D describes the responsibility of product divisions for global operations in their specific product area. Choice E describes the autonomy that division managers have in managing their products. However, global product structures are actually quite common and one of the main ways that companies attempt to achieve global goals, so choice C is the least true statement.

Question 10

Which of these is an appropriate organizational structure in the global stage of international evolution of an organization?

Accepted Answer

The answer of Which of these is an appropriate organizational...

Question 11

Maria performs her work duties from her home in Mexico. Her work partner is Alejandro who lives in Spain. These two individuals have a strong working relationship and their work is vital to the success of their organization. It is most likely these two individuals comprise a .

Accepted Answer

Maria and Alejandro are working together virtually from different countries, making them a part of a virtual global team.

Question 12

Which one of the following is not a reason why organizations may seek out joint ventures with other organizations?

Accepted Answer

Joint ventures are usually entered into to leverage partners' strengths, such as sharing technology or knowledge of local markets, achieving economies of scale, or gaining access to new distribution channels or markets. However, one of the primary reasons for entering into a joint venture is not to distribute financial responsibility for failure to another organization, as both partners in the joint venture typically share financial responsibility and risk.

Question 13

A multidomestic strategy means that competition in each country is handled independently of competition in other countries.

Accepted Answer

A multidomestic strategy is characterized by decentralized decision-making, with each country's operations being tailored to meet the specific needs of that market. As a result, competition is handled independently in each country.

Question 14

When a company reaches the point where its operations actually transcend any single country, it may consider itself to be a(n) .

Accepted Answer

A stateless corporation is one that operates beyond the confines of any single country, not being tied to any specific national identity.

Question 15

John's primary responsibilities are that of coordinating information and activities related to key customer accounts. John can best be described as a .

Accepted Answer

John's role involves coordinating information and activities, which aligns with the responsibilities of a formal network coordinator. This position typically focuses on managing and facilitating communication and projects across different departments or groups within an organization, ensuring that key customer accounts are handled efficiently.

Question 16

The global geographic structure divides the world into equally sized regions, with each division reporting to a different CEO.

Accepted Answer

The global geographic structure does not necessarily divide the world into equally sized regions. It may vary based on the company's strategy and structure. Each division may report to a different CEO, but it is not necessarily based on equal divisions.

Question 17

All of the following except identify reasons why many organizations tap only a fraction of the potential that is available from the cross-border transfer of knowledge.

Accepted Answer

The options A, C, D, and E all identify potential barriers to cross-border transfer of knowledge, but option B identifies an action that organizations take to address one of those barriers. Therefore, option B is the only one that does not identify a reason why many organizations tap only a fraction of the potential for knowledge transfer.

Question 18

Which one of the following statements does not provide an accurate discussion of the three primary factors motivating companies to expand internationally?

Accepted Answer

The statement discussing smaller volume production as a factor motivating companies to expand internationally does not accurately reflect the primary reasons why companies expand globally, which typically center around factors such as access to resources, markets, and knowledge. Smaller volume production may be a strategy for reducing costs, but it is not a primary motivator for expanding international operations.

Question 19

A joint venture is a corporate entity created without any sponsors.

Accepted Answer

A joint venture is a corporate entity created by two or more sponsors who agree to pool their resources and expertise for a specific business purpose.

Question 20

High means that people accept inequality in power among institutions, organizations, and people.

Accepted Answer

Power distance refers to the extent to which people in a society accept inequality in power among institutions, organizations, and people. In high power distance cultures, there is a greater acceptance of unequal distribution of power and authority, whereas in low power distance cultures, people expect equality and are more comfortable challenging authority.

Quiz 7: Designing Organizations for the International Environment