CHAPTER 17
60) The organization design in which an employee reports to both a country manager and a functional manager is a(n):A) matrix structure.B) international division structure.C) geographic structure.D) worldwide product division structure.E) regional management center.
Answer: A
62) Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?A) matrix structureB) international division structureC) geographic structureD) worldwide product division structureE) regional management center
Answer: A
32) An important leadership task involves articulating all of the below mentioned points except:A) beliefs.B) values.C) status.D) policies.E) activities.
Answer: C
31) According to Carly Florina, former CEO of Hewlett-Packard, leadership is about:A) hierarchy.B) title.C) status.D) connecting.E) bragging.
Answer: D
40) Howard Stringer, a native of the United Kingdom, is Chairman of:A) Nissan Motor (Japan).B) Pearson PLC (Great Britain).C) Ford Motor Company (USA).D) Sony (Japan).E) Atlas Copco AB (Sweden).
Answer: D
44) Joseph Tripodi is Chief Marketing and Commercial Officer of:A) Gap (United States).B) Levi's (United States).C) L'Oreal (France).D) Coca-Cola (United States).E) SAP AG (Germany).
Answer: D
64) Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?A) WhirlpoolB) Levi StraussC) Pearson PLCD) ABBE) Gillette
Answer: D
79) Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for:A) labor unions.B) equal opportunity employment.C) higher wages.D) standards for working conditions.E) corporate social responsibility.
Answer: E
53) Which of the following does not contribute to the establishment of an international division?A) Top management commitment that justifies an organizational unit headed by a senior manager.B) Complexity of international operations requires unit with authority to make its own decisions.C) Management recognizes the need for internal specialists.D) Management lacks desire to scan the globe for opportunities and threats.E) Pressure to assemble a staff that will take the responsibility to coordinate.
Answer: D
61) Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all but one of the following benefits:A) lower costs and quicken updates.B) facilitate problem solving.C) unite engineering and manufacturing processes.D) provide customer contacts.E) enhance product consistency.
Answer: D
65) The key to successful matrix management is ensuring that managers are able to:A) adopt a matrix design.B) adhere to matrix structure.C) maintain technical systems.D) resolve conflicts and achieve integration.E) preserve existing organizational culture.
Answer: D
66) Which of the following does not belong in a list of mass production in an automobile company such as Ford?A) changing value chainsB) use of moving assembly lineC) organized production machineryD) outsource from supplier specialistsE) each worker was able to do more than craft producers
Answer: D
68) Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except:A) dexterity.B) team attitude.C) problem solving.D) decision making.E) team work.
Answer: D
71) Which of the following assumptions does not belong in a list of characteristics of lean production?A) labor is more costly than machinesB) set up time can be reducedC) minimize inventory to cut costs, wasteD) maximize backwards integrationE) inspection to prevent defective production
Answer: D
77) Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except:A) don't wait for a crisis to collaborate.B) recognize that collaboration involves some compromise.C) think strategically about relationships with NGOs.D) appreciate the value of the NGOs dependence.E) understand that building relationships with NGOs takes time.
Answer: D
80) The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions:A) factor conditions, demand conditions, industry conditions.B) human rights, animal rights, and the environment.C) content domain, human conditions and animal rights.D) human rights, labor, and the environment.E) content domains, animal rights, and labor.
Answer: D
46) Which of the following is the best organization structure for global marketing?A) international division structureB) matrixC) geographic structureD) worldwide product division structureE) There is no single "best" structure.
Answer: E
47) In the fast changing, competitive environment, new global realities are emerging, which includes all of the following needs except:A) to be cost effective. B) to be customer driven.C) to deliver best quality.D) to deliver quickly.E) to deliver success.
Answer: E
55) A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):A) matrix structure.B) international division structure.C) geographic structure.D) worldwide product division structure.E) regional management center.
Answer: E
49) Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?A) Paul KrugmanB) Kenichi OhmaeC) Tom PetersD) Michael PorterE) Kazuo Inamori
Answer: B
51) Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products.A) increasingB) decliningC) improvingD) horizontalE) vertical
Answer: B
52) As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n):A) matrix structure.B) international division structure.C) geographic structure.D) worldwide product division structure.E) regional management center.
Answer: B
58) One of the potential drawbacks of a regional management center is that:A) pan-regional coordination efforts can suffer.B) the cost can be prohibitive.C) the company may lose its "insider" advantage.D) regional management may take a one-sided approach when implementing corporate objectives.E) there is a lack of coordinated decision making.
Answer: B
59) Under the geographical and product division structures, for the company with French origins, France is:A) the headquarter country market.B) simply another geographic market.C) European market.D) divisional market.E) product market.
Answer: B
63) Having established that the matrix is appropriate, management can expect the matrix to integrate the following competency on a worldwide basis:A) geographic knowledge.B) product knowledge and know-how.C) functional competence in finance, production and marketing.D) knowledge of customer or industry and its needs.E) All of the above are competencies.
Answer: B
33) In addition to "selling" their visions, top management at both Whirlpool and GE face the formidable task of building:A) their company stature.B) physical layout and design.C) a cadre of globally oriented managers.D) a cadre of loyal customers.E) access to distribution channels.
Answer: C
34) Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except:A) the need to have seamless communication.B) not to depend on a small group of people.C) impede information sharing.D) facilitate decision making.E) utilizing everybody's wisdom.
Answer: C
42) According to Prahalad and Hamel, a core competence has all of the following characteristics except:A) potential access to a wide variety of markets.B) a significant contribution to perceived customer benefits.C) it is easy for competitors to imitate.D) benefits to customers.E) it is difficult for competitors to imitate.
Answer: C
50) Management writers often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.A) sprinklersB) fountainsC) chimneysD) skyscrapersE) towers
Answer: C
67) Which of the following does not describe the Toyota Production System (TPS)?A) jidokaB) 'just-in-time'C) fixed setup timeD) built-in qualityE) visualizing problems
Answer: C
74) Primary stakeholders include all of the following except:A) top management.B) employees.C) media.D) suppliers.E) customers.
Answer: C
75) Secondary shareholders include all of the following except:A) media.B) employees.C) local community groups.D) nongovernmental organizations.E) general business community.
Answer: B
41) When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon:A) beliefs and values.B) values and activities.C) speed and commitment.D) policies and speed.E) activities and commitment.
Answer: C
43) Organizations in order to be globally successful must be viewed as portfolio of:A) activities.B) businesses.C) competencies.D) products.E) policies.
Answer: C
54) Hershey rolled out a new line of condensed-milk candies, Yo-man, specifically targeting premium candy segment in:A) India.B) Mexico.C) Japan.D) South Korea.E) China.
Answer: E
56) A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n):A) matrix structure.B) international division structure.C) geographic structure.D) worldwide product division structure.E) regional management center.
Answer: E
70) Which of the following is not the way U.S. auto mass producers operate?A) greater labor contentB) less mechanizationC) less flexible mechanizationD) divide employees in discrete specialtiesE) lack of employee teamwork
Answer: E
72) The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except:A) dealers.B) distributors.C) customers.D) suppliers.E) managers.
Answer: E
73) In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except:A) less mechanization.B) greater labor direct content.C) divide employees with no overlap.D) limited quality control.E) employee teamwork.
Answer: E
76) In developing countries, globalization's opponents accuse companies of:A) undermining local cultures.B) placing intellectual property rights ahead of human rights.C) promoting unhealthy diets and unsafe food technologies.D) pursuing unsustainable consumption.E) all of the above
Answer: E
78) In a socially responsible firm, employees perform all of the following except:A) conduct business in an ethical manner.B) pursue goals and policies that are in society's best interest.C) guided by moral principles.D) distinguish between right and wrong.E) develop their own core ideologies on moral principles.
Answer: E
35) The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which is true and reflects the earlier statement?A) There are 200 million Chinese children studying English.B) There are 24 million American children studying Chinese.C) There are 200 million Indian children studying Chinese.D) Chinese managers study English as much as Chinese.E) There are equal numbers of American and Chinese children studying English.
Answer: A
39) Brazilian Carlos Ghosn is chief executive of:A) Nissan Motor (Japan).B) Pearson PLC (Great Britain).C) Ford Motor Company (USA).D) Pharmacia Corporation (USA).E) Atlas Copco AB (Sweden).
Answer: A
45) According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are:A) adept at exchanging ideas.B) absolutely free of the "not-invented here" syndrome.C) constantly working together to identify best global opportunities.D) working together to solve the biggest global problems.E) able to adapt to systems across borders.
Answer: A
69) Concepts such as "assembler value chains" and "downstream value chains" are associated with:A) lean production.B) the matrix structure.C) polycentric organizational designs.D) the global marketing audit.E) traditional assembly designs.
Answer: A
36) Indra K. Nooyi is chief executive of:A) Nissan Motor (Japan).B) PepsiCo (USA).C) Ford Motor Company (USA).D) Pharmacia Corporation (USA).E) Atlas Copco AB (Sweden).
Answer: B
37) Inge G. Thulin is chief executive of:A) Nissan Motor (Japan).B) 3M (USA).C) Ford Motor Company (USA).D) Pharmacia Corporation (USA).E) Atlas Copco AB (Sweden).
Answer: B
38) Which of the following has an American woman as the chief executive?A) Nissan Motor (Japan)B) PepsiCo (USA)C) Ford Motor Company (USA)D) Pharmacia Corporation (USA)E) Atlas Copco AB (Sweden)
Answer: B
48) In today's dynamic global competitive environment, organizations need to develop new forms of:A) ethnocentrism and myopia.B) flexibility, efficiency, and responsiveness.C) export department structure.D) self-reference criterion.E) geographic structure.
Answer: B
Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 57) The advantages that a regional management center can offer a company include all of the following except:A) pan-regional decision making.B) coordinated regional planning.
C) considerable cost saving.
