Question 1

Which of the following terms best represents the norms and value systems that are shared among the employees of an organization?

Accepted Answer

Organizational culture refers to the shared norms, values, beliefs, and behaviors that exist within an organization. It is the collective personality of the organization and can shape employee behavior and decision-making.

Question 2

Which of the following is a part of the organization architecture that consists of the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

Accepted Answer

Controls refer to the metrics and tools used to monitor and evaluate the performance of subunits and managers, in order to ensure that they are aligned with the overall goals and strategies of the organization. Reports, rewards, knowledge flows, and dominions may also be part of the organization architecture, but they do not specifically refer to the measurement and evaluation of subunit performance, as controls do.

Question 3

The _____ function of a value chain controls the transmission of physical materials through the value chain,from procurement through production and into distribution.

Accepted Answer

The logistics function of a value chain involves managing the flow of physical materials from procurement through production and distribution. This includes activities such as transportation, inventory management, and warehousing. While other functions such as human resources, finance, marketing, and research and development are important aspects of the value chain, they do not control the transmission of physical materials.

Question 4

Which of the following is a primary activity in the operations of a firm?

Accepted Answer

Primary activities have to do with the design, creation, and delivery of the product; its marketing; and its support and after-sale service. The primary activities are divided into four functions: research and development, production, marketing and sales, and customer service.

Question 5

Which of the following support functions is most likely to involve dealing with the organizational structure,control systems,and culture of the firm?

Accepted Answer

Company infrastructure involves dealing with the organizational structure, control systems, and culture of the firm, as it encompasses the overall management framework and processes that support the organization's operations.

Question 6

Who among the following should be viewed as part of a firm's infrastructure?

Accepted Answer

Top management should be viewed as part of the firm's infrastructure. Through strong leadership, top management can consciously shape the infrastructure of a firm.

Question 7

_____ are considered a part of an organization architecture and are used to reward appropriate managerial behavior.

Accepted Answer

Incentives are a part of an organization architecture and are used to reward appropriate managerial behavior. Knowledge flows, reports, processes, and controls are also important components of an organization's architecture, but they are not specifically designed to reward managerial behavior.

Question 8

Processes are:

Accepted Answer

Processes refer to the procedures, methods, and activities used to carry out work within an organization. They define how work should be done and how decisions are made. Therefore, option A is the best choice as it accurately defines processes in an organization. The other options are incorrect as they describe other aspects of organizational management such as metrics, devices, and norms.

Question 9

For services such as banking or health care,"production" typically occurs when:

Accepted Answer

In services such as banking or health care, production occurs when the service is delivered to the customer. This is often the point where the customer receives the value of the service and the production process is complete.

Question 10

The _____ function of a value chain ensures that the company has the right mix of skilled people to perform its value creation activities effectively.

Accepted Answer

Human resource function is responsible for managing and developing the organization's workforce. It ensures that the company has enough skilled and qualified employees to execute various value creation activities, thereby contributing to the overall success of the business.

Question 11

A firm's ability to increase its profitability and profit growth by expanding globally is constrained:

Accepted Answer

A firm's ability to increase its profitability and profit growth by expanding globally is constrained by the need to customize its product offering, marketing strategy, and business strategy to differing national conditions; that is, by the imperative of localization.

Question 12

The _____ of a value chain provide inputs that allow the primary activities to occur.

Accepted Answer

Support activities provide inputs that enable the primary activities of a value chain to occur. These support activities can include things like administrative support, human resources, and technology development.

Question 13

The _____ activities of a firm have to do with the design,creation,and delivery of the product; its marketing; and its support and after-sale service.

Accepted Answer

The primary activities of a firm are those directly involved in the creation and delivery of the product or service, including design, production, marketing, sales, and after-sales service. The other options are not related to these core functions.

Question 14

Of all the value creation activities in a firm,_____ create(s)value by discovering consumer needs and communicating them back to the R&D function of the company,which can then design products that better match those needs.

Accepted Answer

Marketing and sales activities are responsible for identifying consumer needs and preferences, and communicating those back to the R&D function. This helps the R&D team design and develop products that better fulfill consumer needs, ultimately creating value for the firm. Production, human resources, logistics, and information systems are important value creation activities, but they do not have the same direct impact on consumer needs and product design.

Question 15

Which of the following operations of a firm is concerned with the design of products and production processes?

Accepted Answer

Research and development (R&D) is the operation of a firm that is concerned with the design of products and production processes. R&D activities are aimed at creating new products or improving existing ones, as well as optimizing the production process to increase efficiency and lower costs.

Question 16

Which of the following is a support activity in the operations of a firm?

Accepted Answer

The support activities of the value chain provide inputs that allow the primary activities to occur. They include information systems.

Question 17

The term _____ refers to the totality of a firm's organization,including its organizational structure,control systems,incentives,processes,and people.

Accepted Answer

The term "organization architecture" encompasses all the elements mentioned in the question, making it the most comprehensive and accurate choice. The other options, such as primary structure, management structure, and organizational hierarchy, do not capture the full scope of a firm's organization. The term "organizational model" is too broad and could refer to any abstract representation of an organization.

Question 18

_____ is a value creation activity which falls into the category of primary activities.

Accepted Answer

Customer service is a primary activity which directly adds value to the product or service by enhancing customer experience and satisfaction. Creation and maintenance of information systems, human resources, logistics, and company infrastructure maintenance are all support activities that facilitate the primary activities but do not directly add value to the product or service.

Question 19

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.The returns from such a strategy are likely to be greater if:

Accepted Answer

If there is no local competition that offers comparable products, the company has a higher chance of succeeding in the new market. This gives the company an advantage, as it is the first entrant in the market, and can set standards and brand recognition for others to follow. The absence of competition also means that the company can charge higher prices and enjoy higher profit margins.

Question 20

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Accepted Answer

Customer service is the function that creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product. This function ensures that customers are satisfied with their purchase and that their needs are met, which can lead to increased customer loyalty and positive word-of-mouth marketing.

Quiz 12: The Strategy of International Business