Question 1

There are four basic types of global structures available.

Accepted Answer

There are three basic types of global structures: international division, global area structure, and global product structure.

Question 2

________ controls include balance sheets,sales data,product-line growth,and performance reviews of personnel.
A)Bureaucratic
B)Behavioral
C)Output
D)Cultural
E)Moral

Accepted Answer

The listed controls (balance sheets, sales data, product-line growth, and performance reviews of personnel) are all measures of output, which is the focus of output controls. Bureaucratic, behavioral, cultural, and moral controls are more focused on regulating behavior and values within the organization.

Question 3

The more the firm becomes involved in foreign markets,the less quickly the export department structure will become obsolete.

Accepted Answer

As a firm becomes more involved in foreign markets, its export department structure is likely to become obsolete more quickly due to the increasing complexity and diversity of operations, requiring more sophisticated and adaptable organizational structures.

Question 4

Intranets lead to increased productivity because there is no longer a time lag between an idea and the information needed to assess and implement it.

Accepted Answer

Intranets provide a platform for employees to access information quickly and efficiently, eliminating the time lag between an idea and the information needed to assess and implement it. This can lead to increased productivity as employees can make informed decisions and take action more quickly.

Question 5

The greater the degree of internalization at an organization,the more complex the organizational structures become.

Accepted Answer

Internalization refers to the process of adopting organizational values and beliefs as one's own. As employees internalize these values, they become more committed to the organization and its goals. This can lead to the development of more complex organizational structures, such as matrix structures, where employees work across different departments and projects to achieve organizational objectives. Therefore, the greater the degree of internalization, the more complex the organizational structures become.

Question 6

Companies opting for the area structure typically have relatively wide product lines with different end uses and users.

Accepted Answer

Companies opting for the area structure usually focus on geographical regions rather than on wide product lines, allowing them to address local market needs and preferences more effectively.

Question 7

Bureaucratic controls require an extensive socialization process to which informal,personal interaction is central.

Accepted Answer

Bureaucratic controls are based on formal rules, policies, and procedures, not on socialization or informal personal interactions.

Question 8

When exercising control systems,the impact of the environment has to be taken into account in two ways: 1)the control system must measure only those dimensions over which the organization has actual control,and 2)control systems have to be in harmony with local regulations and customs.

Accepted Answer

The statement accurately reflects the importance of considering environmental factors when designing control systems. It highlights two key considerations: ensuring that control systems are focused on areas that the organization can actually impact, and ensuring that they comply with local laws and customs.

Question 9

Behavioral controls can be achieved through the preparation of manuals on such topics as sales techniques to be made available to subsidiary personnel or through efforts to fit new employees into the corporate culture.

Accepted Answer

Behavioral controls can indeed be achieved through the preparation of manuals and efforts to fit new employees into company culture.

Question 10

International divisions were once quite popular among U.S.companies,but globalization of markets and increased shares of overseas sales have made them less suitable than more global structures.

Accepted Answer

The statement is true. The globalization of markets and increased overseas sales have made international divisions less suitable than more global structures. Companies now prefer to adopt a more flexible and integrated approach towards their international operations.

Question 11

________ controls require an extensive socialization process to which informal,personal interaction is central.
A)Bureaucratic
B)Behavioral
C)Output
D)Cultural
E)Moral

Accepted Answer

Cultural controls rely on shared values, beliefs, and norms, which require a socialization process to establish. This process often involves personal interaction and informal communication to transmit the desired cultural values and behavior to new members. Bureaucratic controls rely more on rules and procedures, behavioral controls focus on monitoring and regulating behavior, output controls focus on results, and moral controls focus on ethical values and principles.

Question 12

The country role of ________ may exist in smaller,less-established markets in which corporate commitment to market development is less.
A)contributor
B)implementor
C)black home
D)strategic leader
E)provider

Accepted Answer

In smaller, less-established markets, the role of an implementor is more common as these markets often require execution of strategies developed elsewhere rather than leading or contributing to strategic development.

Question 13

An implementor is a country organization with a distinctive competence,such as product development.

Accepted Answer

An implementor typically refers to an individual or entity responsible for putting plans, strategies, or designs into effect, rather than a country organization with a specific competence like product development.

Question 14

International divisions best serve firms with few products that do not vary significantly in terms of their environmental sensitivity and with international sales and profits that are still quite insignificant compared with those of the domestic divisions.

Accepted Answer

International divisions are best suited for firms with standard products and small international sales and profits, as they can benefit from economies of scale and reduce risk through diversification. Firms with more complex products and larger international operations may require more customized strategies and coordination across divisions.

Question 15

Budgets refers to shorter-term guidelines regarding investment,cash,and personnel policies,while plans refers to formalized plans with more than a one-year horizon.

Accepted Answer

Budgets usually cover shorter time frames, such as a fiscal year, while plans are strategic in nature and cover a longer period, such as 3-5 years.

Question 16

The matrix structure,with its inherent complexity,may decrease the reaction time of a company---a potential advantage when competitive conditions require quick responses.

Accepted Answer

The matrix structure, due to its complexity, often increases the reaction time of a company because decisions must navigate through more layers of management and coordination between different departments, which can slow down the process.

Question 17

With low degrees of involvement,subsidiaries can enjoy high degrees of autonomy as long as they meet their profit targets.

Accepted Answer

When parent companies have low degrees of involvement, they tend to give their subsidiaries more autonomy as long as they meet their profit targets.

Question 18

________ refers to shorter-term guidelines regarding investment,cash,and personnel policies,while ________ refers to formalized plans with more than a one-year horizon.
A)Plans; procedures
B)Protocols; budgets
C)Procedures; tactics
D)Plans; budgets
E)Budgets; plans

Accepted Answer

Budgets typically refer to shorter-term guidelines regarding investment, cash, and personnel policies, while plans are more formalized and often have a horizon extending beyond one year.

Question 19

Firms are typically completely centralized or decentralized.

Accepted Answer

Firms can also have a mix of centralization and decentralization depending on the specific functions and tasks within the organization. They may have centralized decision-making for certain areas, such as finance, but have more decentralized decision-making for marketing or operations.

Question 20

The role of a ________ can be played by a highly competent national subsidiary located in a strategically critical market.
A)contributor
B)implementor
C)black hole
D)strategic leader
E)provider

Accepted Answer

The statement suggests the need for a strategic leader, which can be played by a highly competent subsidiary located in a strategically critical market. A strategic leader is responsible for guiding and coordinating the strategic direction of the organization, which is essential in a critical market. A contributor, implementor, or provider can support the strategic leader, but they cannot replace the need for a leader in this context. A Black hole refers to an unproductive and draining unit within an organization, which is not relevant in this context. Therefore, the best choice is D - strategic leader.

Quiz 11: Coordination, implementation, and Control