Question 1

Which of the following is typically the first step in conducting an audit?

Accepted Answer

The first step in conducting an audit is gathering data. This involves collecting relevant information about the subject or process being audited, such as financial records, policies and procedures, and other documentation that may be necessary to assess the effectiveness or compliance of the organization or system being audited. Once the data has been collected, it can be analyzed and evaluated to determine the next steps in the audit process.

Question 2

Which of the following is a typical problem caused by global markets to managers responsible for marketing control?

Accepted Answer

Differences in market practices create communication problems. As companies expand globally and enter new markets, they may encounter different marketing practices that could create communication problems for managers responsible for marketing control. These problems could arise due to variations in language, culture, and customs, among other factors. Managers must adapt to these differences to ensure effective communication and control of their marketing activities.

Question 3

Out of the different types of mechanisms that are available to help headquarters acquire control over a subsidiary, which of the following helps shift the perception of self-interest from subsidiary autonomy to global business performance?

Accepted Answer

Managers' management mechanisms help shift the perception of self-interest from subsidiary autonomy to global business performance by aligning the goals and objectives of subsidiary managers with those of the headquarters. This is achieved through the use of performance metrics, incentives, and communication channels that encourage cooperation and collaboration between the subsidiary and the headquarters. Data management mechanisms help in decision-making, conflict resolution mechanisms are used to resolve disputes, and session management mechanisms are used for managing meetings and communication. However, none of these mechanisms directly address the issue of self-interest and its impact on subsidiary autonomy.

Question 4

Which of the following is a factor contributing to the establishment of an international division for an organization?

Accepted Answer

The answer of Which of the following is a factor...

Question 5

Which of the following is a distinctive characteristic of multidivisional structured organizations in the United States?

Accepted Answer

The answer of Which of the following is a distinctive...

Question 6

How does competition influence market planning and budgeting?

Accepted Answer

Competition plays a critical role in market planning and budgeting. Companies must take into account the competitive level in the market in order to determine their strategies and budgets. This includes analyzing competitors' strengths and weaknesses, identifying opportunities and threats to the business, and developing a plan for how to compete effectively in the market. The more competitive the market is, the more challenging it is to prepare effective market planning and budgeting, as companies must find ways to differentiate themselves and stand out from the competition.

Question 7

Which of the following statements is true about regional management centers?

Accepted Answer

Regional management centers can coordinate regional activities such as pricing and sourcing to achieve economies of scale and consistency across the region. Option A is false because the scale of regional management centers should be appropriate for the scale of operations in the region being served. Option B may be true, but it is not a definitive characteristic of regional management centers. Option D is false because executives in regional centers have a role in planning and controlling operations within the region.

Question 8

The ________ structure involves the assignment of operational responsibility of the different areas of the world to line managers.

Accepted Answer

The geographic structure involves assigning operational responsibility for different regions of the world to line managers. This structure is particularly common in multinational corporations with a global presence. The ethnocentric structure involves placing home country personnel in key positions at headquarters and subsidiaries around the world, while the integrated structure involves integrating different functional areas within the organization. The rationalistic structure involves maximizing efficiency and rational decision-making processes.

Question 9

Which of the following provides a comparison of a company's performance with that of other competitors within the market?

Accepted Answer

Market share is a measure of a company's sales or revenue in relation to the overall market or industry. By comparing a company's market share to that of its competitors, it provides insight into how well the company is performing within the market in comparison to others. A marketing audit (A) is a comprehensive review of a company's marketing activities and strategies, while a global marketing audit (B) focuses specifically on a company's global marketing efforts. A company's hierarchical flatness (D) refers to the structure of its organization and is not related to market performance.

Question 10

Under which of the following conditions will an international organization move toward an integrated structure?

Accepted Answer

International organizations are more likely to move toward an integrated structure when they have a large-scale foreign business with worldwide product diversity, as this allows for greater synergies and efficiencies through coordination and standardization across different product lines and geographic regions. A limited percentage of total business in foreign countries or low product diversity contributing a large portion of foreign business may not provide sufficient benefits to justify the costs and complexity of integration. A limited number of product divisions in foreign countries may be easier to manage through a decentralized structure.

Question 11

Which of the following is essential when a company management decides to develop a global strategy?

Accepted Answer

Shifting control of subsidiary operations from the subsidiary to headquarters is essential in developing a global strategy to ensure alignment with the company's overall strategic objectives and maintain consistency across global operations.

Question 12

According to Bartlett, which of the following was the first stage of development for successful organizations that avoided the myth of the ideal organizational structure?

Accepted Answer

Bartlett proposed that successful organizations first transition from an ethnocentric or polycentric orientation to a geocentric orientation. This shift allows the organization to operate globally with a more unified strategy, considering the entire world as a potential market rather than focusing on individual countries.

Question 13

________ planning refers to the selection of opportunities defined in terms of products and markets, and the commitment of resources, both human and financial, to achieve these objectives.

Accepted Answer

Strategic planning involves identifying long-term goals and objectives for an organization and determining the necessary resources and actions to achieve those goals. This includes choosing which products or services to offer and which markets to target, as well as allocating resources such as funding and staff to meet those objectives. Operational planning, on the other hand, focuses on day-to-day activities and processes to support the strategic plan. Functional planning refers to the planning and coordination of specific departments or functions within an organization, and accommodative planning is a reactive approach to addressing changes or unexpected events.

Question 14

Which of the following is most likely a key organizational design characteristic suitable for global marketing?

Accepted Answer

A flat organizational structure is most suitable for global marketing as it allows for efficient decision-making and communication across different regions and cultures. A top-bottom one-way communication hierarchy, a multilayered internal structure, and a hierarchy with strong control over subordinates may create communication and decision-making barriers and hinder the organization's ability to adapt to different markets and cultural contexts.

Question 15

________ is defined as the process by which managers ensure that resources are used effectively and efficiently in the accomplishment of organizational objectives.

Accepted Answer

Control is the process of monitoring actual performance, comparing actual performance with planned performance, and taking corrective action as needed. This helps managers ensure that resources are being used effectively and efficiently to achieve organizational objectives. Review and monitor are related to the control process but do not encompass all aspects of it. Accommodation is not a relevant term in this context.

Question 16

Which of the following characteristics of a great company distinguishes it from an ordinary company?

Accepted Answer

A great company distinguishes itself from an ordinary company by seeing itself as a key social institution. This means that it considers its impact on society and strives to make a positive difference beyond just making a profit. Great companies have a purpose and mission beyond just making money and aim to contribute to society in meaningful ways. Keeping its purpose and mission limited or viewing itself only as a money-making machine would not distinguish a company as great, and always adapting a product-centric marketing approach is not necessarily a defining characteristic of a great company.

Question 17

Which of the following statements is true about the indicative planning method?

Accepted Answer

Indicative planning allows for guidance from the headquarters but does not bind subsidiaries to follow it strictly, allowing for flexibility and adaptation to local conditions.

Question 18

Which of the following statements is true of the geographic structure?

Accepted Answer

The answer of Which of the following statements is true...

Question 19

Which of the following is most likely a reason for the success of the indicative planning method?

Accepted Answer

Indicative planning's success often stems from its ability to merge a broad, global outlook with marketing strategies tailored to the specific needs and conditions of individual countries. This approach allows for a more nuanced and effective planning process that can adapt to local market dynamics while still aligning with overarching global objectives.

Question 20

Which of the following statements is true of a full marketing audit?

Accepted Answer

A full marketing audit is a formal and systematic review of an organization's marketing environment, objectives, strategies, and activities. It typically involves a thorough analysis of the company's internal and external environment, including an assessment of its strengths, weaknesses, opportunities, and threats (SWOT analysis). It is not limited to a set of random questions, nor is it conducted solely by the company's finance team. It may be conducted at regular intervals, such as annually, but the frequency may vary depending on the company's specific needs and circumstances.

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