International Business test 3
Which of the following is promoted by a neoclassical structure?
innovation of ideas
Neoclassical structures aim to support organizations ________.
that dismantle horizontal, vertical, or external boundaries that block ideas and relationships
Agreements on international product standards are hampered by all the following factors EXCEPT ________.
the fact that standardization increases production costs
A push strategy for international sales is most likely preferable to a pull strategy when _______
the price of the product is high relative to incomes
In general terms, we see the principles of horizontal differentiation in the design logic of ________.
the value chain
A pull rather than a push strategy is most likely preferable when ________.
there are few governmental restrictions on advertising
Which of the following would most likely be reduced by vertical integration?
transaction cost
Assume the per capita consumption of shoes is three pairs in Country A and two pairs in Country B. The difference probably means that there is a ________ gap in Country B.
usage
Rapid Technologies owns its entire supplier network, which means that the firm most likely uses _______
vertical integration
The temporary arrangement of independent companies, suppliers, and free agents for the purpose of completing a task or project is best known as a(n) ________ organization.
virtual
In which of the following situations would a company most likely benefit from using the international division structure?
when the company's domestic market activity is much more important than its international business activity
________ is an idea perfected by Japanese manufacturers to ensure quality in products.
zero defects
Which of the following would be an example of a customer orientation in international marketing?
A plastics manufacturer makes some components to the specifications of a foreign company.
Which of the following is a sourcing strategy in the global context?
assign domestic buyers for international purchasing
In reality, the organizational charts of ________ MNEs neatly depict a functional, divisional, or matrix structure.
few
When a company identifies a market segment on a global basis, such as a segment based on income, it will likely ________.
find that a niche market in one country may be a mass market in another
The ability of the production process to make different kinds of products and to adjust the volume of output is known as ________.
flexibility
Some MNEs that have tried contemporary structures have run into problems, most notably ______
frequent managerial intervention in decision making
At Tyson Manufacturing, departments and units are organized around discrete business activities, such as finance, production, marketing, and human resources. Tyson most likely has a ________ structure.
functional
What is the most likely reason that sales to a mass market would be necessary for a company selling internationally?
gaining economies in production and distribution
A company adopting a ________ strategy will likely aim to develop an organization culture that helps employees around the world unconditionally accept common goals and practices.
global
Which of the following would most likely indicate that a company should handle its own distribution?
global customers and high technology
Which of the following is NOT one of the three personality traits that specifically affect international marketing?
globalism
Which of the following factors increasingly encourages MNEs to install a geographic division structure?
growth of emerging markets
Coordination refers to ________
linking various value activities within an organization
Avery Designs is an MNE with a diverse portfolio of products including cookware and clothing. Both the foreign and domestic operations for the firm's cookware products report to the same manager. Which structure is most likely used by Avery?
product division
Which of the following statements is most likely true?
A positive brand image helps overcome negative perceptions about a product's country-of-origin.
Which of the following is NOT true about distribution concerns when marketing internationally?
Because most foreign consumers are easily presold by advertising messages, it is difficult to convince retailers to offer good service.
Gap analysis can be used by companies to gain synergy among countries. Which of the following is a benefit of this synergy?
By seeing the combined market potential among several countries, companies can determine whether there is sufficient demand to justify new product development costs.
Which of the following statements is important to companies in order for them to gain contracts with foreign distributors?
Convince the distributors that the product and company are viable.
Which of the following is a set of universal standards for a globally accepted quality assurance system?
ISO 9000
What is the most likely reason that companies such as Gillette (razor blades) and 3M (scouring pads) sell products in smaller package sizes in some developing countries?
In those countries, many consumers lack sufficient cash to buy larger quantities.
At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories. Which of the following does Fidelity most likely use?
Just in time (JIT)
What is the main information-related challenge in global supply chain management?
Many emerging market networks cannot be managed through the Internet because of the lack of technology.
Why are MNEs criticized for exporting to developing countries the same products they sell in developed countries?
Many of the products are deemed to be unnecessary for low income consumers.
Which of the following statements is most likely true regarding vertical differentiation?
Most MNEs balance authority between headquarters and subsidiaries because of globality.
Why might companies sometimes narrow the product line that they sell in a foreign country as compared to the product line they sell at home?
Not all products have sufficient demand in every market.
________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.
Organizational culture
Which of the following BEST describes a major difference between supply chain management and logistics?
Supply chain management involves handling suppliers and customers.
Increasingly, media reach audiences in more than one country, such as through satellite TV that reaches multiple countries simultaneously. What is NOT a problem of advertising on these media
The product may not be available everywhere it is advertised.
Which of the following BEST depicts a push strategy for a U.S. company selling in Mexico?
Tupperware selling through parties in homes
________ is the matter of how the company balances centralization versus decentralization of decision making, whereas ________ is the matter of how the company opts to divide itself into specific units to do specific jobs.
Vertical differentiation; horizontal differentiation
Which of the following BEST describes globally standardized advertising?
a campaign that is similar but not identical from market to market
A hyperarchy is ________.
a large-scale, self-organizing community
Gap analysis is ________.
a method for estimating a company's potential sales by identifying segments it is not serving adequately
Promotion using direct selling techniques is ________.
a push strategy
Before the strong emphasis on zero defects, U.S. companies operated under the premise of ________, which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects.
acceptable quality level
Which of the following is NOT one of the three prevalent approaches to coordination?
adaptation
All of the following are possible advantages of globally standardized advertising programs EXCEPT _______
avoidance of legal impediments
MNEs typically use reporting systems for foreign operations that are similar to the ones they use domestically _______
because common systems allow comparative evaluations
Vertical and horizontal constraints that segment employees and their tasks within an organization are generally referred to as ______
boundaries
Martin Manufacturing is an MNE that centralizes authority to implement an extensive set of rules and procedures to govern a broad range of activities. Martin Manufacturing is most likely applying a system of ________.
bureaucratic control
Decision making in a functional structure tends to be ______
centralized
Tyrone is a production manager at Penderhall Electronics, an MNE with operations in Asia, Europe, and the United States. Tyrone has very little decision-making authority at Penderhall, since most decisions are made at headquarters and distributed downward. Which structure is most likely used by Penderhall?
centralized
Which of the following is the LEAST likely characteristic of neoclassical structures?
centralized decision making
Grover Enterprises is an MNE that relies on shared values among all employees to idealize the preferred behaviors and identify performance measures within the company. Grover is most likely applying a system of ________.
clan control
Johnson & Johnson embodies its organizational culture in "The Credo," which is the firm's ________.
code of conduct
All of the following are true about passive exports EXCEPT that ________
companies generally quote higher prices on exports than on domestic sales
A company would most likely use gap analysis to ________.
compare consumption potential with its own sales
________ is the measuring of performance so that companies can respond appropriately to changing conditions.
control
Formal reports, management performance evaluations, and financial metrics are three examples of ________.
control mechanisms
________ is the linking or integrating of activities into a unified system.
coordination
The need for greater efficiency, which is closely linked to ________, forces MNEs to align their overall strategy with operations.
cost reduction
The importance of using a brand to convey the perception of whether a firm will deliver what it promises is more critical in ________.
countries with strong cultural characteristics of uncertainty avoidance
Concord Foods, an international firm based in the United States, is in the process of transitioning from a classical organizational structure to a neoclassical structure. Which of the following tools would most likely enable Concord to make this change?
cross-functional task forces
The Japanese approach to quality is total quality management (TQM), which stresses which of the following principles?
customer satisfaction, employee involvement, and continuous improvements
johnson & Johnson distributes decision-making power among departments and divisions. This policy provides managers with a sense of ownership and control at the company. Johnson & Johnson is best described as a ________ organization.
decentralized
A multidomestic configuration is most important when _______
demand in individual countries becomes significant
________ is the most common way of identifying market segments within a country.
demographics
Ampco Industries has a production facility in an area of India in which roads are poorly maintained and dangerous. What part of Ampco's marketing mix do these conditions most likely affect?
distribution
International marketing differs from domestic marketing in that ________.
environmental variations require applying principles differently
A kanban system is best described as a system that ________.
facilitates JIT by using cards to control the flow of production through a factory
The ________ the level of the company at which managers make decisions, the more that organization is ________.
higher; centralized
The idea of ________ involves how a company specifies organizational tasks; divides those tasks into jobs, departments, subsidiaries, and divisions; and then assigns authority and authority relationships.
horizontal differentiation
ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers. ACE is most likely engaging in ________.
industrial clustering
Which tool is used by most firms to monitor the data linkages among product planning, parts purchasing, and inventory maintenance activities?
information systems
The fundamental limitation of a matrix structure is that it ________.
institutes a dual hierarchy that violates the unity-of-command principle
If a company's foreign sales per customer is small compared to those in its domestic market, it should most likely _____
introduce a larger family of products
Some critics complain that MNEs introduce and promote superfluous products in developing countries, causing consumers there to buy these products rather than things they need for their health. People answering this criticism have contended that ________.
it is impossible to draw a line between people who can afford and people who can't afford these products
Japanese ________ are groups of independent companies that work together to manage the flow of goods and services along an entire value chain.
keiretsus
All of the following tend to be more expensive when sourcing abroad, EXCEPT ________.
labor rates
Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries?
long distances
Logistics is also known as ________.
materials management
Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy?
multicultural manufacturing
Historically, the geographic division structure is associated with companies pursuing ________ strategies.
multidomestic
When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ________.
nearshoring
IBM puts investments, people, and work anywhere in the world based on the best mix of costs, skills, and environment and uses sophisticated strategies and technologies to support and coordinate activities. IBM most likely uses a ________ structure.
neoclassical
A Japanese keiretsu is best described as a ________.
network structure
________ manufacturing is any manufacturing that takes place in a country different from the home country.
offshore
When a company has improved its operations efficiency so much that it decide to move back to its home country, this is called ________.
onshoring
A current sourcing dilemma that some companies face is whether or not they should ________
outsource innovative processes
Which of the following is most likely to occur when a firm segments markets by country?
overlooking similarities between different countries
Foreman Enterprises produces and sells a variety of products for the home. Foreman recently introduced a new detergent at a very low price with the hope that a high number of consumers will try it out. Foreman is most likely using a ________ strategy.
penetration
The concept of organization includes how a company does all of the following EXCEPT ________.
plans leadership and training programs to develop the managerial staff
________ is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.
private technology exchange (PTX)
Chapman Enterprises is an MNE that markets a diverse portfolio of products including jewelry, luggage, and furniture. Which structure would most likely be used by Chapman?
product division
When selling a commodity for which there is little possibility of product differentiation, a company would likely use which of the following orientations internationally?
production orientation
Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe. Roland is most likely using a ________ manufacturing strategy.
regional
What is the LEAST likely reason that international companies are concerned about the gray market?
requiring companies to make frequent price adjustments to capture the market
The neoclassical structure implemented by Cisco primarily enables the firm to ________.
respond quickly to new opportunities
Which of the following would LEAST likely be caused by a high inflation rate?
rules against increasing export prices
In comparing international and domestic marketing, it is best to state that _______
similar principles are at work
Dixon Electronics recently introduced a new computer with features unavailable from other products on the market. Dixon is charging a very high price for the computer and has plans to progressively lower the price over the next year. Dixon is most likely using a ________ strategy.
skimming
Abel Enterprises has implemented a system based on coordination by mutual adjustment. Which of the following would most likely be used by Abel Enterprises?
social networking
________ is the process of a firm having inputs supplied to it for the production process.
sourcing
Pulte Homes adapts its marketing to foreign differences by making minor changes to bathrooms and outdoor patios. However, Pulte Homes uses the same floor plans and exterior attributes in all countries to gain economies of standardization. Pulte Homes most likely follows a ________.
strategic marketing orientation
Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?
supply chain
A company would most likely export at a price lower than its production and distribution costs in order to ________.
test a market before making a big commitment
