MIS Chapter 15

Of the following, which is NOT one of the three central principles recommended in this chapter for a firm organizing itself for international business? A) organize value-adding activities along lines of comparative advantage B) establish a single office responsible for international systems and a global CIO position C) disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management D) develop and operate systems units at each level of corporate activity-- regional, national, and international

C) Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as _____. A) localization B)cooptation C)particularism D) prejudicial

C) Particularism

The way to identify core business processes is to conduct a _____. A) cost-benefit analysis B) work-flow analysis C) business process analysis D) feasibility

C) business process analysis

Software localization is he process of ______. A) translating a user interface into a second language B) converting software programming to run on a different platform C) converting software to operate in a second language and with local conventions D) modifying software so that it can be adopted in other countries without engineering changes

C) converting software to operate in a second language and with local conventions.

Which of the following is NOT one of the primary types of system configuration discussed in the chapter? A) decentralized B) duplicated C) coordinated D) networked

C) coordinated

Which of the following is NOT one of the principal management challenges in developing global systems? A) encouraging local users to support global systems B) coordinating applications development C) defining an acceptable test plan D) agreeing on common user requirements

C) defining an acceptable test plan.

A global firm can develop transnational centers of excellence as an effective technique to ______. A) ensure connectivity between regional systems B) encourage user support of global systems C) effectively identify gloabal business processes D) develop a merit-based hierarchy among regional groups

C) effectively identify global business processes.

In relation to global systems building, the Internet ____. A) allows the seamless flow of information through the enterprise B) affords local groups stable broadband access C) has reduced some networking problems D) all of the above

C) has reduced some networking problems

Which of the following is NOT one of the principal problems of international networks? A) network capacity B) poor quality of international service C) network standards D) regulatory constraints

C) network standards

Transnational companies have tended to use a _____ systems configuration. A) duplicated B) centralized C) networked D)decentralized

C) networked

In network systems _____. A) development occurs at home base and operations are handed over to autonomous units in foreign locations B) each foreign unit designs its own unique solutions and systems C) systems development and operations occur in an integrated and coordinated fashion across all units D) foreign units design the solutions and systems used at the domestic home base

C) systems development and operations occur in an integrated and coordinated fashion across all units.

Which of the following is NOT one of the three kinds of organizational governance used by global companies? A) centralized B) decentralized C) coordinated D) localized

D) localized

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ______ strategy. A) domestic exporter B) franchising C) transnational D) multinational

D) multinational

Which of the following is NOT one of the main benefits to implementing global systems? A) superior management and coordination B) vast improvements in operations C) new economies of scale at production facilities D) reduced hardware costs

D) reduced hardware costs

In centralized systems _____. A) development occurs at home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems C) systems development and operations occur in an integrated and coordinated fashion across all units D) systems development and operations occur totally at the domestic home base.

D) systems development and operations occur totally at the domestic home base.

The major dimensions of international systems architecture include each of the following EXCEPT _____. A) the global environment B) corporate global strategy C) technology platform D) transborder data flow

D) transborder data flows

In terms of global business strategy, the governance of ______ firms has been likened to a federal structure, strong central management core of decision making, but considerable dispersal of power and financial resources. A) domestic exporter B) multinational C) franchiser D) transnational

D) transnational

(T/F) Global systems allow fixed costs to be amortized over a much smaller customer base.

False

(T/F) Micromarketing describes the direct marketing of products to individuals rather than groups.

False

(T/F) Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.

False

(T/F) Private networks may not provide the same level of quick and predictable response as VPNs.

False

(T/F) There are two primary global organization types: management centralized in the home country or distributed to foreign centers

False

(T/F) With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets.

False

(T/F) The first step in establishing a corporate strategy and structure for globalization is to determine the appropriate technology platforms.

True

(T/F) The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.

True

(T/F) To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country.

True

A force in the environment to which businesses must respond and that influences the direction of the business is called a business ______. A) driver B) threat C) process D) matrix

A) driver

Franchise companies have typically had ____ systems. A) duplicated B) centralized C) networked D) decentralized

A) duplicated

A critical necessity for ensuring the integration of local systems into a global system is ____. A) adherence to data and technical standards B) use of standard hardware at the local level C) use of standard user software at the local level D) all of the above

A) adherence to data and technical standards.

As a firm moves from local option systems to regional and global systems A) agency costs increase B) coordination costs decrease C) transaction costs increase D) both transaction and agency costs increase

A) agency costs increase

When developing a global system, bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called _____. A) cooptation B) change movement C) implementation D) advocacy

A) cooptation

In duplicated systems ______. A) development occurs at home base and operations are handed over to autonomous units in foreign locations B) each foreign unit designs its own unique solutions and systems C) systems development and operations occur in an integrated and coordinated fashion across all units D) foreign units design the solutions and systems used at the domestic home base

A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.

German companies ______. A) do not recognize the profit until the project is completely finished and they have been paid B) recognize profits before the project is finished C) recognize profits when the project is initialized D) do not recognize the profits until they have been formally audited

A) do not recognize the profit until the project is completely finished and they have been paid.

Most companies pursuing a global strategy begin as _____. A) domestic exporters B) multinationals C) franchisers D)transnational

A) domestic exporters

General cultural factors driving global business are ______. A) global communication and transportation technologies, a global knowledge base, and global social norms B) the development of global markets, political stability, and a global workforce C) the rise of global workforce, political stability, and a global knowledge base D)the rise of global workforce, global economies of scale, and global production and operations

A) global communication and transportation technologies, a global knowledge base, and global social norms.

The chapter outlines three steps in developing an effective global system solution. Which of the following is NOT one of these steps? A) identify outdated legacy systems to be replaced B) identify the core systems to coordinate centrally C) choose a development approach, incremental, evolutionary, or other D) define the core business processes

A) identify outdated legacy systems to be replaced.

Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view? A) only systems that support functions that are absolutely critical to the organization B) core systems are worthwhile provincial systems C) core systems and any financial systems that can be easily integrated with each other D) financial and accounting systems

A) only systems that support functions that are absolutely critical to the organization.

In terms of global business strategy and structure, a domestic exporter will use a policy of _____. A) some dispersed sales, with centralized production, accounting, human resources, and strategic management. B) centralized production and accounting with decentralized marketing and human resources C) centralized production, accounting, marketing, and human resources D) dispersed production and marketing, with centralized accounting, human resources and strategic management

A) some dispersed sales, with centralized production, accounting, human resources, and strategic management.

Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis? A) TPS systems B) EDI systems C) CRM systems D) none of the above

B) EDI systems

Most large companies with overseas operations have inherited ______. A) recently built technology platforms for international systems B) batch-oriented reporting from independent foreign divisions to corporate headquarters C)transaction-oriented reporting based at the home office for overseas business D) global marketing systems developed domestically

B) batch-oriented reporting from independent foreign divisions to corporate headquarters.

Domestic exporters typically have highly ______ systems. A) duplicated B) centralized C) networked D) decentralized

B) centralized

Global coordination of all of the major business functions permits the location of business activity according to _____. A) social norms and values B) comparative advantage C) competitive threat D) knowledge base

B) comparative advantage

In decentralized systems ______. A) development occurs at home base and operations are handed over to autonomous units in foreign locations B) each foreign unit designs its own unique solutions and systems C) systems development and operations occur in an integrated and coordinated fashion across all units D) foreign units design the solutions and systems used at the domestic home base

B) each foreign unit designs its own unique solutions and systems.

The network systems structure is the most visible in ____ services. A) production B) financial C) marketing D) software design

B) financial

Which of the following is NOT a specific challenge to global business system? A) shortages of skilled consultants B) language differences C) different telecommunication standards D) different data transfer speeds

B) language differences

In a multinational business strategy, the _______ business function is decentralized, dispersed to foreign units. A) finance/accounting B) production C) human resources D) strategic management

B) production

All of the following present challenge to developing a global business except A) foreign accounting practices B) production costs C) language differences D) exchange rates

B) production costs

VPNs _____. A) use the public internet for communications B) may not be able to support large numbers of remote users, due to the variable traffic on the internet C) provide many of the same services as private networks D) all of the above

D) All of the above

Based on your reading of the chapter, why should companies avoid creating an all-encompassing, new global system when moving towards global operations? A) these may fail due to lack of visibility B) it is difficult to quantify and explain the benefits of information systems that are that large C) "grand design" approaches typically fail to identify centers of excellence D) opposition is strengthened because of requirements for huge resources

D) Opposition is strengthened because of requirements for huge resources.

Multinational companies tend to have _____ systems. A) duplicated B) centralized C) networked D) decentralized

D) decentralized

Which of the following is not one of the main organizational issues facing firms who are seeking to globalize? A) choosing a global strategy B) organizing the global business structure C) organizing the systems management D) defining the global environment

D) defining the global environment

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms ____. A) maintain a master database at their head offices B) develop a master system that meets the standards of all the countries concerned C) use microwave satellite transmission to move data D) develop separate systems within each country

D) develop separate systems within each country.

In terms of global business strategy and structure, a multinational company will use a policy of _____. A) mixed sales and marketing, with centralized production, accounting, human resources, and strategic management B) centralized production, accounting, marketing, human resources, with strategic management C) dispersed production, accounting, human resources, with centralized strategic management, and marketing D) dispersed production and marketing, with centralized accounting and strategic management

D) dispersed production and marketing, with centralized accounting and strategic management.

In terms of global business strategy and structure, a franchise company will use a policy of ______. A) centralized production, accounting, marketing, human resources, with strategic management B) dispersed production, accounting, human resource, with centralized strategic management, and marketing C) dispersed production and marketing, with centralized accounting, human resources and strategic management D) dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting

D) dispersed production, marketing, human resources, with centralized strategic management and finance/accounting.

Effective networked systems must have a _____. A) powerful telecommunications backbone B) culture of shared applications development C) shared management culture that crosses cultural barriers D) both B and C E) A, B, and C F) none of the above

E) A, B, and C

(T/F) In international companies, English has become a kind of standard business language.

True

(T/F) One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.

True

(T/F) The collapse of the Eastern block has speeded the growth of a world culture.

True

(T/F) A powerful strategic advantage for a globalized firm is lowered cost factors in production.

True

(T/F) Accounting practices can vary significantly from country to country.

True

(T/F) European countries have very strict laws concerning transborder data flows and privacy.

True

(T/F) Global business drivers can be divided into two groups: general cultural factors and specific business factors.

True

(T/F) In a multinational strategy, financial management is centralized while production and sales are decentralized.

True