Question 1

Today, successful firms are sourcing product from emerging markets and also looking for customers and new business and product innovations to use globally.

Accepted Answer

This statement is true. Many successful firms are not only sourcing products from emerging markets but are also expanding globally to find new customers and innovation opportunities.

Question 2

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

Accepted Answer

Achieving balance between autonomy and integration is crucial in global organizations as it ensures that teams can work independently while also collaborating effectively to achieve common goals. This balance helps to build a strong organizational culture and ensures that decision-making is efficient and effective.

Question 3

A marketing plan or a budget must be prepared with respect to the level of competition in a target market.

Accepted Answer

The level of competition in a target market plays a crucial role in determining the marketing plan and budget. A higher level of competition may require a more aggressive marketing strategy and a larger budget, while a lower level of competition may allow for a more conservative approach. Therefore, it is important to consider the level of competition when creating a marketing plan or budget.

Question 4

As a company's international business grows, the complexity of coordinating and directing this activity extends beyond the scope of a single person.

Accepted Answer

As a company expands its international business, there are many factors to consider such as cultural differences, language barriers, legal regulations, and market conditions. Coordinating and directing this activity requires more than one person to manage and oversee the various aspects of the business. It requires a team of professionals with diverse skills and expertise.

Question 5

As foreign product diversification increases, the likelihood that product divisions will operate on a worldwide basis decreases.

Accepted Answer

As foreign product diversification increases, product divisions are more likely to operate on a worldwide basis in order to effectively market and manage their diverse range of products in different regions.

Question 6

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

Accepted Answer

A geographically dispersed company has to have knowledge and expertise in a variety of areas, including global markets, cultures, and regulations, in order to be successful across different regions. Limiting knowledge to just the product, function, and home territory would not be enough.

Question 7

For organizational effectiveness, the composition of the board of directors of an organization should have a majority of home-country nationals.

Accepted Answer

There is no clear consensus on whether having a majority of home-country nationals on the board of directors is necessary for organizational effectiveness. It largely depends on the specific circumstances and goals of the organization. Some argue that having a diverse board with a mix of nationalities and backgrounds can bring unique perspectives and insights, while others believe that having locals on the board can better understand and represent the interests of the organization's stakeholders in the home country. Ultimately, it is up to the organization to determine what composition of the board will best serve its interests.

Question 8

In a geographic structure, the corporate headquarters retains responsibility for worldwide planning and control.

Accepted Answer

In a geographic structure, while regional divisions handle local operations, the corporate headquarters typically retains responsibility for overarching global strategies and control to ensure alignment with the company's overall objectives.

Question 9

Product managers with a worldwide responsibility typically achieve competence in technical knowledge and know-how on a global basis.

Accepted Answer

Product managers with a worldwide responsibility need to have a deep understanding of technical knowledge and global markets in order to effectively manage products across different countries and cultures.

Question 10

The more entrenched the market competition, the easier it is to achieve market share.

Accepted Answer

The more entrenched the market competition, the more difficult it is to achieve market share. With entrenched competition, it likely means that existing firms have a strong hold on the market, making it harder for new entrants to gain market share.

Question 11

Planning, control and budgeting are three independent functions of a market audit.

Accepted Answer

Planning, control, and budgeting are interconnected functions in a market audit, where planning sets the objectives, control ensures those objectives are being met, and budgeting allocates the necessary resources to achieve them.

Question 12

Because market share is hard to obtain, it should not be considered in a marketing audit.

Accepted Answer

Market share is an important metric to consider in a marketing audit, as it helps to identify a company's position in the market compared to its competitors. It can provide valuable insights into a company's performance and potential opportunities for growth.

Question 13

The use of self-directed teams to respond to competitive advantage is decreasing due to better communications through technology.

Accepted Answer

The use of self-directed teams is still popular as it allows for faster decision making and problem solving, and better utilization of team members' skills and expertise. Technology has helped improve communication within these teams, making them even more effective in responding to competitive advantage.

Question 14

One critical value vital to global companies today is to have the proper mind set for both leadership and the organization.

Accepted Answer

Having the proper mindset for both leadership and the organization is crucial for global companies to succeed in today's complex and competitive business environment. Without a strong leadership mindset focused on innovation, collaboration, and cultural inclusivity, companies can struggle to navigate the ever-changing global marketplace. Additionally, having a well-defined organizational mindset that aligns with the company's core values and goals can help ensure that all employees are working towards the same objectives and that everyone is working together to achieve success.

Question 15

A country subsidiary is a major structural device employed today to enable a corporation to acquire geographic knowledge.

Accepted Answer

A country subsidiary is a type of legal entity that is established by a corporation in a specific country to carry out its business activities in that country. This allows the corporation to gain knowledge of the specific legal, cultural, and economic conditions of that country, which can inform its business decisions and strategies.

Question 16

Global business leaders must be capable of articulating a coherent global vision and strategy that integrates local responsiveness, global efficiency and leverage.

Accepted Answer

Global business leaders need to have a clear understanding of how to balance local adaptation with global integration in order to create a successful global business strategy. This involves developing a vision that takes into account the unique characteristics of each market while simultaneously leveraging the global resources and capabilities of the organization to achieve maximum efficiency and effectiveness.

Question 17

A major responsibility of staff specialists is to ensure that lessons learned in more advanced markets are applied to the management of their products in smaller, less developed markets.

Accepted Answer

Staff specialists are expected to use their expertise and knowledge of more advanced markets to improve the management of products in smaller, less developed markets. This helps ensure that lessons learned and best practices are shared across the organization to drive growth and success.

Question 18

Most companies typically ignore the previous year's actual performance and concentrate on industry averages when evaluating performance.

Accepted Answer

It is not common for companies to completely ignore the previous year's actual performance as it provides insight into their own progress and areas for improvement. Industry averages may be used as a benchmark for comparison, but actual performance is still taken into consideration.

Question 19

The challenge of leaders is to direct the efforts and creativity of everyone in the company toward personal goals.

Accepted Answer

The challenge of leaders is to direct the efforts and creativity of everyone in the company toward common or organizational goals, not personal goals.

Question 20

The choice of location for board meetings is not critical.

Accepted Answer

The choice of location for board meetings is critical as it can impact attendance, accessibility, and overall productivity of the meeting. It is important to choose a location that is convenient for all board members and provides the necessary resources to conduct an effective meeting.

Quiz 14: Global Organization and Leadership: Managing the Global Marketing Effort