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Q:
(p. 332) _____ has led brand marketers to realize they need to take a multidomestic approach to be more responsive to local preferences.
A. The rise of supplier dominance
B. The rise of a consumer culture
C. Globalization in general
D. Environmental awareness
Q:
(p. 332) _______ is an important structural decision and resultant separate activities need to be coordinated and integrated back together as a whole so the business functions effectively.
A. Diversification
B. Broadening
C. "Preferencing"
D. Differentiation
Q:
(p. 332) Increasingly, globally engaged, multi-business companies are changing the role of corporate headquarters from one of ________ to one of ________.
A. Enabler of innovation and synergy; resource allocation
B. Performance monitoring; coordinator, supporter and enabler
C. Resource allocation; performance monitoring
D. Coordinator of linkages across multiple businesses; enabler of innovation and synergy
Q:
(p. 332) Major efforts to improve traditional organizational structures seek to _______ and _______. One key emphasis in large organizations is to redefine the role of corporate headquarters.
A. Reduce unnecessary control; focus on enhancing core competencies
B. Reduce costs; increase shareholder control
C. Reduce external shareholders; focus on enhancing core competencies
D. Redefine boundaries; open the organization more fully to outside influence
Q:
(p. 331) _______ means removing human minds and hands from an organization's most routine tasks and replacing them with computers and networks.
A. Using the Internet
B. Outsourcing
C. Digitization
D. Coordination
Q:
(p. 331) The result of _______ is coordination, communication and decision-making functions being accomplished quickly and easily, making traditional organizational structures look slow, inefficient and noncompetitive.
A. Globalization
B. The Internet
C. The outsourcing of product design
D. The divisional organizational structure
Q:
Different physical standards are more challenging than differences in tastes for firms looking to sell their products or services outside the domestic market.
Q:
(p. 330) Today, global means:
A. Locating operations in numerous countries
B. Selling goods in overseas markets
C. Using resources from other markets
D. Getting resources and talent from around the globe and selling worldwide
Q:
Differences in tastes can be a major challenge for firms looking to sell their products or services outside the domestic market.
Q:
(p. 3030 The need for global coordination and innovation ________ to get the right mix of local initiative, information flow, leadership and corporate culture.
A. Is forcing constant experimentation and adjustment
B. Is entirely management-based
C. Has been diminished
D. Varies with location
Q:
Different physical standards can require a firm pursuing international opportunities to change its current products or services to sell them into a nondomestic market.
Q:
(p. 330) Today, the primary motivation of workers is:
A. Job security
B. Personal growth
C. Incremental improvement
D. Dogmatic leadership
Q:
In 2008, more than 50 percent of General Motor's automobile's sales came from outside the United States.
Q:
(p. 330) _______ of all industry either operates globally or will soon do so.
A. Nearly one-third
B. Over three-fourths
C. More than two-thirds
D. The vast majority
Q:
In 2008, about a third of Wal-Mart's profits came from outside the United States.
Q:
(p. 329) Which of the following is NOT a fundamental trend driving decisions about effective organizational structures in the twenty-first century?
A. Globalization
B. Internet
C. Speed
D. External product design
Q:
To the extent that customers outside a firm's domestic market are willing and able to buy a firm's current products or services, implementing an international strategy can directly increase a firm's revenues.
Q:
(p. 329) Twenty-first-century corporations reflect:
A. Interdependency
B. Top-down approach
C. Structured interaction
D. Internal focus
Q:
(p. 329) In the twentieth century, successful organizations required:
A. External focus
B. Flexible interaction
C. Bottom-up approach
D. Self-sufficiency
Q:
The most obvious economy of scope that may motivate firms to pursue an international strategy is the potential new customers for a firm's current products or services that such a strategy might generate.
Q:
(p. 328) Product teams:
A. Can tend to slow down innovation
B. Reduce costs associated with design, manufacturing and marketing
C. Place an absolute limit on customer responsiveness
D. Are temporary structures
Q:
Products and services that a firm sells in its domestic market will always also sell in foreign markets.
Q:
(p. 328) The temporary nature of the product-team structure's teams results in:
A. Lower coordination costs
B. More management levels above the team
C. Increased bureaucracy with decision-making
D. Higher coordination costs
Q:
The increased use of international strategies by both large and small firms suggests that the economic opportunities associated with operating in multiple geographic markets can be substantial.
Q:
(p. 328) Team members in a product-team structure are:
A. Assigned on a temporary basis
B. Assigned to very broad tasks within a division
C. Assigned on a permanent basis
D. Managed increasingly compared to a matrix structure
Q:
International strategies are typically limited to just huge multinational companies.
Q:
(p. 328) The team in a product-team structure is usually created at _______ and they stay with it indefinitely if it becomes a viable business.
A. Financing stage of a new product idea
B. The marketing stage of a new-product idea
C. The inception of the new-product idea
D. The distribution stage of a new-product idea
Q:
International strategies are actually a special case of business strategies.
Q:
(p. 328) The _______ seeks to simplify and amplify the focus of resources on a narrow but strategically important product, market, customer or innovation.
A. Product-design structure
B. Matrix team structure
C. Divisional structure
D. Product-team structure
Q:
At some level, international strategies have existed since before the beginning of recorded time.
Q:
(p. 327) To avoid the deficiencies that might arise from a permanent matrix structure, some firms are accomplishing particular strategic tasks by means of a "temporary" or "flexible":
A. Overlay structure
B. Market structure
C. Operational structure
D. Advantage structure
Q:
Discuss the four structural options for firms pursuing international strategies.
Q:
(p. 327) Problems with the matrix structure's implementation are heightened ________ with the complications introduced by distance, language, time and culture.
A. With regional diversifications
B. In an international context
C. In a national geographic range
D. By an increase in synergies
Q:
Describe the differences between market and hierarchical governance options for firms pursuing international strategies.
Q:
(p. 327) The matrix structure:
A. Is easy to design and easy to implement
B. Is difficult to design and difficult to implement
C. Is difficult to design, but easy to implement
D. Is easy to design, but difficult to implement
Q:
Is financial risk the same as business risk?
Q:
(p. 327) The matrix structure increases the number of ______ who exercise general management responsibilities, typically as project managers.
A. Corporate level managers
B. Functional level managers
C. Middle managers
D. Business unit managers
Q:
What is meant by political risk? What types of political risks do firms face?
Q:
(p. 327) Which structure provides dual channels of authority, performance responsibility, evaluation and control?
A. Matrix structure
B. Product-team structure
C. Divisional structure
D. Holding company structure
Q:
Describe the transnational strategy.
Q:
(p. 326) The _______ combines the advantages of functional specialization with the advantages of product-project specialization.
A. Specialization business
B. Product-team structure
C. Divisional organization
D. Matrix structure
Q:
What is the local responsiveness/international integration trade-off that firms face when they go into international markets?
Q:
Is learning from international operations automatic for firms? Why or why not?
Q:
(p. 326) The _______ is one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager.
A. Functional structure
B. Ambidextrous structure
C. Divisional structure
D. Matrix structure
Q:
In international business, is a "race to the bottom" always good for firms?
Q:
(p. 326) A ______ is used to temporarily put people and resources where they are most needed.
A. Divisional organizational structure
B. Product-team structure
C. Matrix organizational structure
D. Functional organizational structure
Q:
What is countertrade? How is it useful in international business?
Q:
(p. 325) The divisions in a _______ operate autonomously.
A. Simple organization
B. Holding company
C. Strategic business unit
D. Matrix organization
Q:
What are trade barriers? How do they affect foreign firms?
Q:
(p. 325) The ______ is where the corporate entity is a broad collection of often unrelated businesses and divisions such that it acts as financial overseer having the ownership interest in various parts of the company but has little direct managerial involvement.
A. Matrix organizational structure
B. Product-team structure
C. Holding company
D. Strategic business unit
Q:
Agrestal Cosmetics, Inc. is a leading U.S. manufacturer of natural, herb-based cosmetic products. It started out purely as a domestic company but in 1983 established operations in India primarily to gain access to that country's abundant supply of hibiscus, a plant that provided important raw materials to the company's products. In 2009, Agrestal did business in 29 countries around the world. It has factories in Malaysia and Taiwan to use the low labor cost in those countries in making its labor-intensive products. In the late 1990s, it had to close it operations in a foreign country when, due to a change in the country's leadership, all foreign companies had to cease doing business there. During the Brazilian financial crisis, Agrestal adopted the practice of using revenues generated in Brazil to buy orange concentrate locally and sell that concentrate in the United States. Agrestal's corporate finance department aggressively uses hedging in all the countries where it operates. In a few select countries, Agrestal licenses its brand names and know-how to local licensees. Currently, Agrestal is organized whereby all strategic and operational decisions are made at its Princeton, New Jersey headquarters.To optimize both local responsiveness and international integration, Agrestal has to move to a ________ structure.A) matrixB) transnationalC) operationalD) coordinated federation
Q:
(p. 324) Which of the following is NOT a strategic disadvantage of the divisional organizational structure?
A. Makes policy consistency a known standard
B. Increases costs incurred through duplicate functions
C. Creates difficulty maintaining overall corporate image
D. Fosters potentially dysfunctional competition for corporate-level resources
Q:
(p. 324) Which of the following is NOT a strategic advantage of a divisional organizational structure?
A. Forces coordination and necessary authority down to the appropriate level for rapid response
B. Sharply focuses accountability for performance
C. Increases focus on products, markets and quick response to change
D. Eliminates functional specialization within each division
Q:
(p. 325) The ________ has the potential disadvantage of increased costs of coordination with another "pricy" level of management.
A. Matrix organizational structure
B. Product-team structure
C. Holding company
D. Strategic business unit
Q:
(p. 325) The advantages and disadvantages of the ________ are very similar to those of divisional structures.
A. Simple business structure
B. Strategic business unit
C. Matrix organizational structure
D. Functional structure
Q:
(p. 325) The _______ is an adaptation of the divisional structure whereby various divisions or parts of divisions are grouped together based on some common strategic elements, usually linked to distinct product/market differences.
A. Strategic business unit
B. Functional organizational structure
C. Holding company
D. Ambidextrous organization
Q:
(p. 324) When the diversity, size and number of units continue to increase, it may become necessary to ________ in order to improve implementation, promote synergy and gain greater control over the diverse business interests.
A. Eliminate at least one level of management
B. Revert to a functional structure
C. Add another layer of management
D. Further delegate
Q:
(p. 324) The division, in a divisional structure is usually ________, which facilitates accurate assessment of profit and loss.
A. Totally autonomous
B. Asked to cede profit responsibility
C. Given profit responsibility
D. Given total authority over a project
Q:
(p. 323) Delegation ________ in response to varied competitive environments.
A. Slows decision making
B. Is a form out outsourcing
C. Increases the management levels necessary
D. Expedites decision making
Q:
There are relatively few examples of pure ________ in today's economy.
A) decentralized federations
B) transnational structures
C) centralized hubs
D) coordinated federations
Q:
(p. 323) A divisional structure allows corporate management to ________ for the strategic management of distinct business entities.
A. Delegate responsibility
B. Delegate authority
C. Increase the number of managers
D. Be eliminated
Q:
Firms pursuing an international strategy have ________ basic organizational structural alternatives.
A) 3
B) 5
C) 4
D) 2
Q:
(p. 323) Manufacturers often organize sales into divisions based on:
A. Differences in the product's level of innovation
B. Differences in distribution channels
C. Differences in geographic appeal
D. Differences in financial needs
Q:
In a ________ structure, operational decisions are delegated to division general managers/country presidents, but broader strategic decisions are made at corporate headquarters.
A) transnational
B) centralized hub
C) coordinated federation
D) decentralized federation
Q:
(p. 322) A _______ is one in which a set of relatively autonomous units are governed by a central corporate office but where each operation has its own functional specialists who provide products or services that are different from those of other operations.
A. Divisional organizational structure
B. Matrix organizational structure
C. Functional organizational structure
D. Product-team structure
Q:
(p. 322) When a firm diversifies, top management may be:
A. Eliminated altogether
B. Burdened with too many tasks, including running the day-to-day business
C. Excluded from strategic decision making
D. Confronted with excessive coordination demands
Q:
In a ________ structure, corporate staff functions are generally limited to the collection of accounting and other performance information from divisions/country companies and to reporting this aggregate information to appropriate government officials and to the financial markets.
A) transnational
B) decentralized federation
C) centralized hub
D) coordinated federation
Q:
(p. 322) __________ such as project teams or planning committees is frequently used in functionally organized firms to enhance coordination and to facilitate understanding across functional areas.
A. Integrating devices
B. Comprehensive mechanisms
C. Strategic tactics
D. Cost control methods
Q:
General Electric (GE) uses a ________ structure to manage its global operations.
A) transnational
B) centralized hub
C) decentralized federation
D) coordinated federation
Q:
(p. 322) The narrow technical expertise achieved through __________ can lead to limited perspectives in the priorities of the functional units.
A. A simple structure
B. Specialization
C. A product-team structure
D. A simple ranking
Q:
Toyota is an example of a firm that uses the ________ structure.
A) centralized hub
B) transnational
C) decentralized federation
D) coordinated federation
Q:
(p. 322) The strategic challenge presented by the functional structure is _____________ of the functional units.
A. Developing narrow technical expertise
B. The measurability of functional units
C. Good separation
D. Effective coordination
Q:
Firms that have been successful in adopting the transnational structure include
A) Sony.
B) Disney.
C) Ford.
D) Nokia.
Q:
(p. 322) Specialization among workers is most used in a:
A. Matrix organizational structure
B. Simple organizational structure
C. Product-team structure
D. Functional organizational design
Q:
Firms that attempt to optimize both local responsiveness and international integration will choose a ________ organizational structure.
A) centralized hub
B) transnational
C) coordinated federation
D) decentralized federation
Q:
(p. 322) Functional structures predominate in firms with:
A. An emphasis on catering to individual customers' needs
B. Rapidly changing markets and technologies
C. A broad national market
D. A single or narrow product focus
Q:
Firms that seek to balance the need for local responsiveness and international integration will typically choose ________.
A) centralized federations
B) transnational structures
C) decentralized federations
D) matrix structures
Q:
(p. 322) A __________ is one in which the tasks, people and technologies necessary to do the work of the business are divided into separate groups with increasingly formal procedures for coordinating and integrating their activities to provide the business's products and services.
A. Functional organizational structure
B. Matrix organizational structure
C. Divisional structure
D. Simple organizational structure
Q:
Firms that seek to maximize international integration in their operations will typically opt for ________ structures.
A) transnational
B) decentralized federation
C) coordinated federation
D) centralized hub
Q:
Briefly match the appropriate type of bonus compensation to the strategic goal being pursued. What is the rationale behind these match-ups?