Question 1

At persistent signs of ineffective work, a company should ________.
A)switch from a customer orientation to a product orientation
B)implement price skimming
C)analyze its organizational design, systems, and work flow for the possible causes of those problems
D)acquire smaller born globals to regain lost market share

Accepted Answer

When a company is experiencing signs of ineffective work, the best course of action is to analyze its organizational design, systems, and work flow to identify the causes of the problem. Switching from a customer orientation to a product orientation or implementing price skimming would not necessarily solve the problem, and acquiring smaller born globals may not be feasible or relevant.

Question 2

The organizational culture has a low impact in a ________ strategy.
A)global
B)transnational
C)multidomestic
D)international

Accepted Answer

In a multidomestic strategy, companies tailor their products and services to local markets, which reduces the impact of a unified organizational culture as local subsidiaries operate more independently.

Question 3

The organizational structure for global e-businesses, in particular for physical products, typically involves a network of virtual e-exchanges and "bricks and mortar" services, whether those services are in-house or outsourced.

Accepted Answer

The statement accurately describes the typical organizational structure for global e-businesses dealing with physical products. The network of virtual e-exchanges and physical services (whether in-house or outsourced) is necessary to facilitate efficient global trade and delivery of products.

Question 4

The feedback from the control process and the information systems should ________.
A)point out the most suitable organizational structure for a company at a given point in time
B)help employees formulate a plan for personal development
C)signal any necessary change in strategy, structure, or operations in a timely manner
D)eliminate organizational anarchy

Accepted Answer

The feedback from the control process and the information systems should signal any necessary change in strategy, structure, or operations in a timely manner. This is essential for the organization to adapt and stay competitive in a constantly changing environment. The other options are not directly related to the feedback and information systems.

Question 5

Intel's "Platformisation" refers to customizing a range of chips in a combination suitable for a particular target market, as a response for the increasing need for speedy adaptation to the market.

Accepted Answer

The answer of Intel's "Platformisation" refers to customizing a range...

Question 6

Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
A)globalization and localization
B)mass marketing and niche marketing
C)vertical mobility and horizontal mobility
D)differentiation and integration

Accepted Answer

The answer of Two major variables in choosing the structure...

Question 7

Two major variables in choosing the structure and design of an organization are the opportunities and need for differentiation and integration.

Accepted Answer

The answer of Two major variables in choosing the structure...

Question 8

________ is most likely to reduce the effectiveness of an organizational structure.
A)Low adaptability
B)Fluidity
C)Dynamism
D)High flexibility

Accepted Answer

Low adaptability means that the structure is inflexible and rigid, which can hinder its ability to respond to changing circumstances and adapt to new situations. This can reduce its effectiveness in the long run. Fluidity, dynamism, and high flexibility, on the other hand, can enhance the effectiveness of an organizational structure by allowing it to be more agile and responsive to changes in the environment.

Question 9

To address the globalization-localization dilemma, firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability.

Accepted Answer

The statement correctly identifies that firms are seeking to address the globalization-localization dilemma by pursuing transnational capability through horizontal organization.

Question 10

The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances, networks, and horizontal design formats.
A)multidomestic structure
B)transnational corporation
C)international division structure
D)bureaucratic structure

Accepted Answer

The given strategy is known as the transnational corporation (TNC) strategy. TNCs try to balance the benefits of both global integration and local responsiveness. They achieve this by using a structure that is a mix of centralization and decentralization, alliances, networks, and horizontal design formats to optimize their operations. The multidomestic structure is focused on meeting local need, the international division structure is used by organizations that have a centralized structure, and bureaucratic structures are focused on hierarchy and control, which is not the same as the TNC strategy.

Question 11

The global functional structure typical of the transnational company creates a complex coordination and control system, as it attempts to combine the capabilities and resources of a multinational corporation.

Accepted Answer

The answer of The global functional structure typical of the...

Question 12

Why are global companies increasingly abandoning rigid structures? How are they adapting to the changing global environment?

Accepted Answer

The answer of Why are global companies increasingly abandoning rigid...

Question 13

Which of the following indicates a need for change in organizational design?
A)low turnover
B)a decrease in overseas customer complaints
C)seamless innovation
D)new management with different goals and strategies

Accepted Answer

The introduction of new management with different goals and strategies may require a change in organizational design to align with the new direction and vision of the company. The other options do not necessarily indicate a need for organizational design changes. Low turnover could suggest a positive workplace culture, decreasing overseas customer complaints could suggest a successful international strategy, and seamless innovation could suggest effective processes and procedures in place.

Question 14

Describe the organizational structure and characteristics of transnational corporations.

Accepted Answer

The answer of Describe the organizational structure and characteristics of...

Question 15

To be effective, an organizational structure should ________.
A)not accommodate overlapping responsibilities
B)be rigid
C)be highly adaptable to the changing needs of the company
D)be the same as that of its competitors

Accepted Answer

An organizational structure should be highly adaptable to the changing needs of the company to remain effective. This allows for the organization to remain competitive and efficient in its operations. Accommodating overlapping responsibilities can lead to confusion and inefficiency, while a rigid structure can hinder innovation and growth. It is not necessary for the organizational structure to be the same as that of its competitors, as each company has its unique needs and goals.

Question 16

In general, centralized decision making is common for some functions such as ________.
A)sales
B)finance
C)marketing
D)production

Accepted Answer

Centralized decision making is common for finance because it involves critical decisions regarding the allocation of resources, investments, and financial planning, which typically require oversight and control at a higher, centralized level of an organization to ensure consistency and alignment with the overall strategic goals.

Question 17

According to the ________ model, as the company becomes larger, more complex, and more sophisticated in its approach to world markets, it may evolve into a transnational corporation.
A)four stages of contribution
B)crowdsourcing
C)matrix
D)evolutionary stages

Accepted Answer

The evolutionary stages model suggests that companies go through different stages of development as they grow, and as they become larger, more complex, and more sophisticated in their approach to world markets, they may evolve into a transnational corporation.

Question 18

In general, decentralized decision making is common for some functions such as ________.
A)finance
B)research and development
C)production
D)strategic management

Accepted Answer

The answer of In general, decentralized decision making is common...

Question 19

Historically, the geographic division structure is associated with companies pursuing ________ strategies.
A)multidomestic
B)transnational
C)global
D)international

Accepted Answer

The geographic division structure works well for companies pursuing a multidomestic strategy, where the company customizes its products and marketing strategies to fit the unique needs of each local market. This structure allows for decentralized decision-making and facilitates local adaptation. On the other hand, transnational and global strategies require a more centralized organizational structure to allow for integration and coordination across different markets. International strategies may not require a geographic division structure at all, as they typically involve exporting products to foreign markets without major customization.

Question 20

The best organizational structure is the one that ________.
A)does not allow any compromise on the globalization-localization continuum
B)upholds the status quo
C)actively resists organizational change
D)facilitates the firm's goals and is appropriate to its industry, size, technology, and competitive environment

Accepted Answer

The best organizational structure is the one that facilitates the firm's goals and is appropriate to its industry, size, technology, and competitive environment. This means that the structure needs to be flexible and adaptable to change while still meeting the needs and objectives of the organization. It should also be designed to optimize communication, decision-making, and resource allocation. Any structure that upholds the status quo or actively resists organizational change will impede the company's ability to adapt to new challenges and opportunities. Similarly, a structure that does not allow for any compromise on the globalization-localization continuum may limit the firm's ability to effectively serve its target markets.

Quiz 8: Developing a Global Management Cadre

At persistent signs of ineffective work, a company should ________.

The organizational culture has a low impact in a ________ strategy.

The organizational structure for global e-businesses, in particular for physical products, typically involves a network of virtual e-exchanges and "bricks and mortar" services, whether those services are in-house or outsourced.

The feedback from the control process and the information systems should ________.

Intel's "Platformisation" refers to customizing a range of chips in a combination suitable for a particular target market, as a response for the increasing need for speedy adaptation to the market.

Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.

Two major variables in choosing the structure and design of an organization are the opportunities and need for differentiation and integration.

________ is most likely to reduce the effectiveness of an organizational structure.

To address the globalization-localization dilemma, firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability.

The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances, networks, and horizontal design formats.

The global functional structure typical of the transnational company creates a complex coordination and control system, as it attempts to combine the capabilities and resources of a multinational corporation.

Why are global companies increasingly abandoning rigid structures? How are they adapting to the changing global environment?

Which of the following indicates a need for change in organizational design?

Describe the organizational structure and characteristics of transnational corporations.

To be effective, an organizational structure should ________.

In general, centralized decision making is common for some functions such as ________.

According to the ________ model, as the company becomes larger, more complex, and more sophisticated in its approach to world markets, it may evolve into a transnational corporation.

In general, decentralized decision making is common for some functions such as ________.

Historically, the geographic division structure is associated with companies pursuing ________ strategies.

The best organizational structure is the one that ________.