WGU_FVC1_Ch10_The Organization of Global Business

market structure (customer structure)

a special case of the divisional structure where products are grouped into separate divisions according to the needs of different customers

A tool that people use to coordinate their actions to obtain something they seek or value is known as ________.

ORGANIZATION

Of the following, which is NOT an advantage of the functional structure?

Of the following, which is NOT an advantage of the functional structure?

A special case of the divisional structure where products are grouped into separate divisions according to their similarities or differences is called a _____ structure.

PRODUCT

At ExxonMobil, divisions include Upstream, Downstream, and Chemical. The Upstream division includes exploration, development, production, and gas and power marketing. The Downstream division includes refining and supply, fuels and marketing, and lubricants. ExxonMobil utilizes a _____ structure.

PRODUCT

At IBM, there are five divisions: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. IBM utilizes a _____ structure.

PRODUCT

The primary disadvantage of the divisional structure

Requires high operating and managing costs Communication problems may arise as various managers in various divisions attempt to coordinate their activities. Divisions may start to compete for organizational resources and may start to pursue divisional goals at the expense of the goals of the global business as a whole.

________ refers to a new phase in the evolution of the multinational corporation, where work is sourced wherever it is most efficient and the corporation transcends nationality altogether.

STATELESS CORPORATION

Which one of the following would Windmere Technologies not claim as a purpose of its organizational structure?

Serves as a barrier to interactions with other organizations

According to C.K. Prahalad, the fourth stage of globalization is _____.

when stateless corporations locate their core corporate functions and top executives in different countries

All of the following are organizational structures for global businesses EXCEPT:

HORIZONTAL

The advantages of the divisional structure is that

Are able to focus their activities upon a specific kind of product, market or geographical region. Develop a common identity and approach to problem solving, which increases cohesiveness and results in improved decision making and performance Because each division has the full complement of functional resources, it can respond to the requirements of individual products, markets, or geographical regions and quickly adapt as these needs change Each division can be held fully accountable for its performance and this enables better control. Employees' identification with their division increases their commitment, loyalty, and job satisfaction.

According to the text, ConocoPhillips placed their ethics office in which part of the organization structure?

Audit and finance department

The matrix structure is advantageous

Because it allows the company to meet multiple demands from the environment. Resources can be flexibly allocated and the firm can adapt to changing external conditions. It also provides employees the opportunity to acquire both functional and division-related skills. Facilitates innovation and creativity and provides a work setting in which employees with different functional expertise can cooperate to solve non-programmed decision-making problems.

An organizational structure in which functions are grouped together to serve the needs of products, markets, or geographical reasons is called a(n) ________ structure.

DIVISIONAL

Disadvantages of the matrix structure

Determining the responsibility and authority relationships between the functional and divisional managers Limit opportunities for promotion because most employees move laterally, from division to division, and not vertically to upper management positions.

A basic problem of the market structure is determining the responsibility and authority relationships between the functional and divisional managers.

FALSE

According to Ms. Bartz, former CEO of Yahoo!, organizational structure promotes innovation.

FALSE

At GM, North American Operations, GM Acceptance Corporation, International Operations, and Hughes Electronics are examples of the company's subsidiaries.

FALSE

C.K. Prahalad an expert in the field and professor at the University of Michigan suggests that stateless corporations represent the third stage of globalization.

FALSE

One disadvantage of the divisional structure is that functions focus their activities upon a specific kind of product, market or geographical region.

FALSE

Research shows that separating domestic and international operations is a smart strategic decision that has virtually no drawbacks.

FALSE

There are typically _____ organizational structures for global business.

FOUR

C.K. Prahalad postulates that stateless corporations represent the _____ stage of globalization.

FOURTH

An organizational structure that groups people together because they hold similar positions in a company, perform similar tasks, or use the same kinds of skills is called a(n) ________ structure.

FUNCTIONAL

Global businesses with a narrow product line or a highly integrated product mix, such as aircraft manufacturers or oil and gas firms typically use a _____ organizational structure.

FUNCTIONAL

CEMEX has three divisions: North American, South America and the Caribbean, and Europe, Asia, and the Middle East. CEMEX has a _____ structure.

GEOGRAPHICAL REGION

Which of the following structure type best identifies the structure Mirkhani Mining Supplies would be using if it grouped its products and services into separate divisions based on the needs of different areas served by the company?

Geographical region structure

Matrix structures are especially common

In high-tech and biotechnology companies.

Of the following, which is NOT listed in the text as a purpose of organizational structure?

It allows the members of an organization to develop a cohesive company culture

The organizational structure serves the following purposes

It allows the members of the organization to perform a wide variety of activities based upon a division of labor that leads to the departmentalization, standardization, and specialization of functions and tasks. It permits to the organization members the coordination of their activities by integration mechanisms such as hierarchical supervision, formal rules and procedures, and training and socialization. It determines the boundaries of the organization and regulates its interfaces with the environment and its interactions with other organizations.

Of the following, which is NOT an advantage of an international division?

It ensures that the company will be more profitable

Of the following, which is NOT a disadvantage of an international division?

It fosters a global mindset in the people working within the division.

A ________ is a particular kind of the divisional structure where products are grouped into separate divisions according to the needs of different customers.

MARKET

Hilton Hotels Corporation has the following divisions which cater to different customer classes around the world: Hilton, Hilton Garden Inn, Doubletree, Embassy Suites, Hampton, and Timeshares. Hilton Hotels Corporations has a _____ structure.

MARKET

A defense contractor may need deep functional skills as well as the ability to coordinate across the functions for each contract or project. This contractor ought to use a _____ structure.

MATRIX

An organizational structure in which people are grouped simultaneously by function and by division is known as a(n) ________ structure.

MATRIX

A global defense contractor needs deep functional skills as well as the ability to coordinate across the functions of each contract or project. For this example, the organizational structure that would best suit their needs would be a matrix structure.

TRUE

A market structure is a particular kind of divisional structure that groups products into separate divisions according to the needs of different customers.

TRUE

B.N.W. Industries, Zippo Manufacturing Company, Mack Trucks, and Maglite are all examples of companies with export departments.

TRUE

Global businesses with a hybrid structure are said to be organized by more than one dimension at the top level.

TRUE

Lenovo, the Chinese computer manufacturer, which became a global brand in 2005 is an example of a stateless corporation.

TRUE

The reason why some organizations reject a functional organizational structure is because they believe it renders them unable to respond to environmental changes that require coordination between functional areas, and because it offers each employee a restricted view of the organizations primary goal.

TRUE

The varying functions of ExxonMobil's Upstream, Downstream, and Chemical subunits demonstrate its product organizational structure

TRUE

There are four stages of globalization: Global companies produce goods in one country and export them to other countries, foreign subsidiaries are established to handle the exports from their own countries, operations are set up in other countries, the corporation locates their core corporate functions and top executive in different countries in order to achieve competitive advantage.

TRUE

The functional structure has several advantages

The functional structure promotes economies of scale. Manufacturing all products in one single plant for instance, enables the organization to acquire the latest and most scale-intensive machinery. Promotes in-depth skill development of employees by providing a well-defined career ladder that allows employees to be exposed to a range of activities within their own functional expertise. The functional structure encourages collaboration, efficiency, and quality within the function.

Disadvantages of functional structure

There can be an inability to respond to environmental changes that require coordination between the functional areas. In these cases, the coordinating mechanisms across functions can become overloaded. Each employee has a restricted view of the organization's primary goals. Accountability is diffused because profit and loss accounts are calculated for the entire firm rather than for each function

division

a business subunit that consists of a collection of functions or departments that share responsibility for producing a particular product or service

hybrid structure

a combination of different organizational structures

A business subunit that consists of a collection of functions or departments that share responsibility for producing a particular product or service is known as a(n) _____.

a division

stateless corporation

a new phase in the evolution of the multinational corporation, where work is sourced wherever it is most efficient and the corporation transcends nationality altogether

geographical region structure(area structure)

a special case of the divisional structure where products are grouped into separate divisions according to the needs of the different geographical regions the company serves

product structure

a special case of the divisional structure where products are grouped into separate divisions according to their similarities or differences

organization

a tool that people use to coordinate their actions to obtain something they seek or value

divisional structure

an organizational structure in which functions are grouped together to serve the needs of products, markets, or geographical regions

matrix structure

an organizational structure in which people are grouped simultaneously by function and by division, usually an employee reports to two managers

functional structure

an organizational structure that groups people together because they hold similar positions in a company, perform similar tasks, or use the same kinds of skills

At GM, several subunits share responsibility for producing automobiles. These consist of: North American Operations, GM Acceptance Corporation, International Operations, and Hughes Electronics. This is an example of an organization with _____.

divisions

The first step a domestic firm takes when entering the global arena is usually to ________.

export some of its products

Limited Clothing Inc. has a corporate headquarters with three divisions: North American Division, European Division, and Asia Division. Limited Clothing Inc. has a _____ structure.

geographical region

In the second state of globalization

global businesses establish foreign subsidiaries to handle the exports from their home countries.

In the first stage of globalization

global companies produce goods in one country and export them to other countries.

In the third stage of globalization

global firms set up operations in other countries.

A functional structure is one where an organization:

groups people together because they hold similar positions in a company, perform a similar set of tasks, or use the same kind of skills

A product structure is one where an organization:

groups products into separate divisions according to their similarities or differences

Specific drawbacks of separating domestic and international operations may include the following:

preventing the design of products with both domestic and international appeal precluding the sharing of core competencies and knowledge complicating the capture of learning-curve savings resulting from consolidating production in manufacturing plants around the world.

In the fourth stage of globalization

stateless corporations locate their core corporate functions and top executives in different countries in order to achieve competitive advantage via access to talent, capital, low costs, or proximity to their most important customers

Global businesses in the mining and energy industries also

tend to have functional structures.

organizational structure

the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals

While many major corporations have a global presence, stateless corporations are different because _____.

they attempt to transcend nationality altogether

Global businesses that use a functional structure

typically have a narrow product line or a highly integrated product mix, such as aircraft manufacturers or oil and gas firms.