Question 1

In recent quarters, the strongest results have come from PepsiCo's fast-growing international division.Snack sales are particularly strong in Mexico and Russia.

Accepted Answer

False

Question 2

At companies with a global orientation, the best person for top executive positions is generally considered to be a person born in the headquarters country.

Accepted Answer

This statement is false. Companies with a global orientation prioritize diverse backgrounds and experiences in their leadership positions, and may choose the best candidate regardless of their country of origin. Cultural awareness and cross-cultural communication skills may also be important factors in selecting top executives for global companies.

Question 3

A major disadvantage of a regional center is its cost.

Accepted Answer

Regional centers are typically expensive to establish and maintain, which can be a major disadvantage for organizations or governments that are considering implementing them.

Question 4

In the long run, an organization derives its global competitiveness from its ability to bring high-quality, low-cost products to market faster than its competitors.

Accepted Answer

This statement is generally true as it highlights the importance of having a competitive advantage in terms of product quality, cost, and speed of delivery. Organizations that can effectively manage these factors are more likely to succeed in the global market. However, there may be other factors that can also contribute to a company's competitiveness, such as innovation, brand recognition, and customer service.

Question 5

A geographically dispersed company cannot limit its knowledge to product, function, and the home territory.

Accepted Answer

A geographically dispersed company must have knowledge and understanding of different regions, cultures, and markets in order to be successful. Limiting knowledge to only product and home territory can hinder the company's potential growth and success in other areas.

Question 6

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

Accepted Answer

This statement is true. These terms are commonly used to describe organizations that lack collaboration and communication between different departments or units, leading to a fragmented and inefficient structure.

Question 7

When business is conducted in a single region that is characterized by differences in economic, social,geographical, and political conditions, there is both justification and need for a management center.

Accepted Answer

The answer of When business is conducted in a single...

Question 8

New forms of flexibility, efficiency, and responsiveness are required to meet the demands of globalizing markets.

Accepted Answer

Globalization has led to increased competition and the need for companies to adapt quickly to changing market conditions. This requires new forms of flexibility, efficiency, and responsiveness in order to succeed.

Question 9

Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company.He explained that the speed of innovation that is required to compete in the world mandates that we must
have seamless communication.

Accepted Answer

Yong Nam, CEO of LG, did stipulate that English would be required throughout the company, emphasizing the need for seamless communication in order to compete in the global market.

Question 10

During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.

Accepted Answer

This is stated in the sentence, "During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company."

Question 11

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

Accepted Answer

Achieving balance between autonomy and integration is a key challenge in global organizations. Autonomy allows different units or subsidiaries to operate independently, while integration ensures coordination and alignment of goals and strategies across the entire organization. Finding the right balance between these two is crucial for successful global operations.

Question 12

A Brazilian, Carlos Ghosn, an executive in the company, was required to move aggressively to cut costs and make drastic changes in Nissan's structure.

Accepted Answer

This statement is true. Carlos Ghosn was brought in as CEO of Nissan in 1999 and implemented a series of measures to turn around the struggling company, including cutting costs and restructuring the organization.

Question 13

McDonald's organizational design integrates the international division and geographical structures with McDonald's U.S.having five geographical operating divisions, and McDonald's International having
four.

Accepted Answer

The statement is true, as McDonald's has five geographical operating divisions in the U.S. and four in the international division, which implies an integration of international and geographical structures in its organizational design.

Question 14

Indra Nooyi, chair and chief executive of PepsiCo, is faced with rising commodity prices and weak demand for carbonated soft drinks internationally.

Accepted Answer

Indra Nooyi stepped down as CEO of PepsiCo in 2018. The current CEO is Ramon Laguarta.

Question 15

Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment.This and other values reflect Unilever's philosophy of "doing well by doing good."

Accepted Answer

The statement correctly describes Unilever's philosophy of "doing well by doing good."

Question 16

According to Kenichi Ohmae's view of the world, there are 30 regions with populations ranging from 5 million to 20 million people.Based on this, China would be viewed as several distinct regions.

Accepted Answer

Kenichi Ohmae's view of the world identifies regions based on population size, with each region having a population of 5 to 20 million people. Given China's large population, it would likely be viewed as several distinct regions rather than a single one.

Question 17

Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.

Accepted Answer

The statement is true as the Nokia's decline was due to their failure to adapt to changes brought by Apple and Google, making it necessary for executives to redefine the concept of corporations and focus on core competencies.

Question 18

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

Accepted Answer

Globalization and increased competition usually lead to changes in organizational patterns as companies adapt to new market conditions. Therefore, it is likely that more Japanese companies will break from traditional organization patterns as they seek to compete internationally and respond to changing consumer demands.

Question 19

Frederick Taylor claimed that all managers had to see the world the same way.

Accepted Answer

Frederick Taylor believed in the concept of "One Best Way" and believed that there was only one correct way of doing things in the workplace. He believed that all managers needed to see the world in the same way and follow his principles of scientific management in order to achieve maximum efficiency and productivity. Therefore, the statement "Frederick Taylor claimed that all managers had to see the world the same way" is true.

Question 20

Successful companies, the real global winners, must have both good strategies and good execution.

Accepted Answer

Good strategies are important for identifying the direction and goals of a company, while good execution is necessary for achieving those goals in practice. Without both, a company may struggle to succeed in the global marketplace.

Quiz 17: Leadership, Organization, and Corporate Social Responsibility