Bus 250 Chapter 12
True
Formal structures are easier to observe and imitate than informal structures.
True
Formally, organizational charts specify the scope of responsibilities for various parties.
False
From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm homogeneity.
False
Global product division structure, which is the opposite of the geographic area structure, supports the transnational strategy.
True
Managers need to actively develop learning and innovation capabilities to leverage multinational presence.
True
Tacit knowledge is non-codifiable, and its acquisition and transfer require hands-on practice.
False
The global standardization strategy maximizes local responsiveness.
True
Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive.
Costs of products and services are increased.
Which of the following is an effect of adopting a local responsiveness strategy?
home replication strategy
Burger Mart, a fast food franchise in the U.S. is famous for its unique recipes that are a combination of a variety of spices. Their products are very popular in the U.S. They open a new outlet in Germany. They do not change their menu or their recipes as their menu and products are already popular in the U.S. Based on the integration-responsiveness framework, the strategy used by Burger Mart is a(n) _____.
develop and retain knowledge within each subsidiary.
Companies following a localization strategy differ from companies following a home replication strategy in that the companies following a localization strategy:
Knowledge is mostly developed and retained at the center and key locations.
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a global standardization strategy?
Knowledge is developed at the center and transferred to subsidiaries.
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?
It centers on relentless pursuit with highly motivated employees working overtime.
In the context of organizational cultures, which of the following is true of a wolf culture?
develop learning and innovative capabilities to leverage multinational presence as an asset.
In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:
have an understanding of the informal workings of multinational enterprises.
Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:
transnational
Multinational enterprises that engage in a _____ strategy promote global learning and diffusion of innovations in multiple ways.
managers have to deal with two bosses who are often in conflict.
The global matrix structure supports the goal of the transnational strategy, but in practice it is often difficult to deliver because:
cost reduction and local responsiveness
The two sets of pressures that multinational enterprises (MNEs) confront are _____.
Global standardization strategy
TrinkCan Inc., a soft drink company in Wales, establishes new branches in England, Australia, and the United States. To minimize its costs, the company uses similar packaging, distribution, and promotion across all the countries. According to the integration-responsiveness framework, which of the following strategies is used by TrinkCan?
the development and retention of knowledge at the center and key locations.
Unlike a transnational strategy, a global standardization strategy involves:
It often lacks local responsiveness.
Which of the following is a disadvantage of adopting a home replication strategy?
It is effective when pressures for cost reductions are low.
Which of the following is true of a localization strategy?
It encourages the fragmentation of the multinational enterprises into fiefdoms.
Which of the following statements is true of a geographic area structure?
Local responsiveness
_____ means reacting to different consumer preferences and host-country demands.