OT 5301 - Ch 6
1. What does building a global presence enable an organization's operations to achieve? a. economies of scale b. economies of scope c. factors of production d. its international development stage
ANS: A
18. Refer to Chart 6.2. How would you relate the structure diagrammed in organizational chart 6.2 to a global geographic structure? a. The firm shown above is not as far along in developing opportunities for multidomestic strategy as the global geographic structure would be. b. Product managers differ in that, in the chart above, the product heads are line managers primarily accountable for their product domestically, whereas, in the global geographic structure, product heads are staff advisers. c. The structure shown is better than the global geographic structure. d. The global geographic structure is more domestically oriented than the one above.
ANS: A
22. Lawrence Incorporated used global teams as part of its internationalization, enabling them to be more locally responsive to different regional markets, consumer preferences, and political and legal systems. Which of the following issues did this structure address? a. the differentiation challenge b. units gaining influence within the global firm c. codification of organizational knowledge throughout the global firm d. lack of ability to gain economies of scope
ANS: A
27. Which of the following characterizes the transnational model? a. using shared vision and values to achieve coordination in this horizontal structure b. being one step short of the matrix in exploiting both global and local advantages for the corporation as well as multiple interrelated competitive issues c. having a single headquarter and a single centre of control for each country and for each product line d. not having a single corporate headquarter, but a clear hierarchical responsibility
ANS: A
3. Which factor motivates companies to expand internationally and is related to labour and raw materials? a. cheaper production b. smaller number of distribution channels c. economies of scale d. economies of scope
ANS: A
11. Which type of strategy would encourage production design, assembly, and marketing tailored to the needs of each country? a. focused b. multidomestic c. globalization d. joint venture
ANS: B
12. With what kind of products does the global product structure work best? a. products that are technologically dissimilar b. products that can be standardized for marketing worldwide c. products that are obsolete in one country, but not in another d. products that are cheap and easy to produce
ANS: B
15. Which of the following is a characteristic of the global matrix organizational structure? a. It increases horizontal coordination, but decreases vertical coordination. b. It balances the interests of both product standardization and regional customization c. It commonly utilizes matrix bosses as functional and product heads. d. It divides the world into regions with each division reporting to the CEO.
ANS: B
19. Refer to Chart 6.2. Which structure is shown? a. global functional b. domestic hybrid c. global matrix d. global product
ANS: B
20. Which component of the global organizational challenge is being faced by an organization that has to create a structure to operate in numerous countries that differ in economic development, language, political systems and government regulations, cultural norms and values, and infrastructure? a. the problem of transferring knowledge across a global firm b. dealing with greater complexity and differentiation c. the need for integration d. the need for KSAs
ANS: B
24. Which of the following, if present to a high degree, means that people accept inequality among institutions, organizations, and people? a. uncertainty avoidance b. power distance c. employee empowerment d. integration
ANS: B
26. Which model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts? a. transformative b. transnational c. global d. multidomestic
ANS: B
28. Which of the following characteristics distinguishes the transnational organization from other forms of global organizations? a. Assets and resources are dispersed worldwide into highly specialized operations that are linked through interdependent relationships. b. Structures are stable. c. Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole. d. Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style rather than through formal structures and systems.
ANS: B
4. In what stage does a specific division replace the export department, requiring the need to hire specialists to handle sales, service, and warehousing abroad? a. domestic b. international c. global d. multinational
ANS: B
9. Which of the following is a new entity that is created when two or more separate firms come together to share development and/or production costs? a. wholly owned subsidiaries b. joint ventures c. consortia d. licensing agreements
ANS: B
13. Which of the following is a characteristic of the global product organizational structure? a. It utilizes country managers who are accountable for profit and loss of every product. b. It fits well with customization of production or marketing. c. It may result in competition among product divisions. d. It will ensure that all countries are covered well.
ANS: C
17. Refer to Chart 6.1. Which structure is shown? a. global geographic b. global matrix c. global product d. global functional
ANS: C
2. Which term refers to the number and variety of products and services a company offers, as well as the number and variety of regions, countries, and markets it serves? a. economies of scale b. market potential c. scope d. development stage
ANS: C
21. What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries? a. knowledge transfer b. differentiation c. integration d. development
ANS: C
23. Which of the following kinds of formal positions do organizations create to coordinate information and activities related to key customer accounts? a. functional manager b. transnational team c. network coordinator d. division network
ANS: C
5. In what stage of the international evolution of a company are the worldwide geographic or product structures most likely to appear? a. domestic b. international c. multinational d. global
ANS: C
7. Which of the following is a popular approach to sharing development and production costs and penetrating new markets? a. consortia b. licensing c. joint ventures d. franchising
ANS: C
10. What type of strategy is being followed when a company such as Coca-Cola decides to use the same product design and advertising strategy throughout the world? a. multidomestic b. consortia c. focused d. globalization
ANS: D
14. Which of the following is a characteristic of the global geographical organizational structure? a. It is most useful for new product lines. b. It works well for products with rapidly changing technologies. c. It works best if there are similar needs for the product across countries. d. It may make product planning on a global scale challenging.
ANS: D
16. Refer to Chart 6.1. Which of the following best describes the organization depicted in Chart 6.1? a. Law, engineering, and finance are considered to be product groups. b. The regional directors are also responsible for product groups. c. Global product heads fulfill the function of full-time staff integrators. d. Global product heads are usually accountable for profit and loss of their product in worldwide sales.
ANS: D
25. Which statement best describes Mandel-Campbell's description of Canada's approach to competing globally? a. Canada has competed effectively internationally. b. Canada needs policies to encourage entrepreneurial action. c. Canada needs to do more research to understand and address globalization. d. Canadian companies have not had the gumption necessary for international success.
ANS: D
6. Which types of organizations operate with the entire world as their marketplace? a. multidomestic firms b. domestic organizations c. governmental agencies d. global companies
ANS: D
8. Which of the following is the term for groups of independent companies that come together to share skills, resources, costs, and access to one another's markets? a. joint ventures b. cartels c. alliances d. consortia
ANS: D
