Exam 2 Chapter 10

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

Product Structure

18. At ExxonMobil, divisions include Upstream, Downstream, 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 uses a(n)?

Product Structure

19. At IBM there are five divisions: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. IBM uses a(n)?

Product Structure

25. A defense contractor may need deep functional skills as well as the ability to coordinate across the functions for each contract or project. What organizational structure should this contactor use?

Matrix Structure

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

In the Audit and Finance department

21. CEMEX has three divisions: (1) North America; (2) South America and the Caribbean; and (3) Europe, Asia, and the Middle East. This is an example of?

A Geographical Region Structure

2. Lenovo the Chinese computer manufacturer, is a corporation where it is difficult to identify one country as the home country. Lenovo can be described as?

A Stateless Corporation

20. Market Structure;

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

22. Area Structure;

Also called a Geographical Region Structure

9. What is a tool that people use to coordinate their actions to obtain something they seek or value?

An Organization

5. According to C.K. Prahalad, what is the first stage of globalization?

Companies produce goods to export to other countries

23. A market structure is also sometimes called?

Customer structure or customer class structure

11. 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)?

Division

24. What is the initial step towards globalization?

Export

8. What is the four stage of globalization?

Firms 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.

14. There are typically how many organizational structures for global business?

Four

15. 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(n)?

Functional Structure

6. The second stage of globalization;

Global businesses establish subsidiaries to handle the exports from their home country

7. The third stage of globalization;

Global firms set up operations in other countries

1. Some companies are global and so well integrated into the countries where they have a presence, that it is difficult if not impossible, to identify one country as the home country for these corporations. Such companies are called?

Stateless Corporations

3. C.K. Prahalad would say that Chinese computer manufacturer Lenovo is in which stage of globalization?

The Fourth Stage of Globalization (stateless corporation)

26. A basic problem with what organizational structure is it difficult to determine the responsibility and authority relationships between the functional and divisional managers?

The Matrix Structure

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

They attempt to transcend nationality altogether

10. Purpose of organizational structure;

a. Allows 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 b. Permits to the organization members the coordination of their activities by integration mechanisms such as hierarchical supervision, formal rules and procedures, and training in socialization c. Determines the boundaries of the organization and regulates its interfaces with the environment and its interactions with other organizations

27. The Advantages of the matrix structure

a. Allows the company to meet multiple demands from the environment b. Resources can be flexibly allocated and the firm can adapt to changing external conditions c. Allows employees to acquire both functional and divisional related skills d. It 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

12. Advantages of international division

a. It permits global businesses to concentrate all international efforts and expertise in one location b. If the international division is at the same organizational level as domestic operations, it signals to international customers their importance to the company c. It fosters a global mindset in the people working within the division, and facilitates the key process of designing products that cater to local tastes and cultures

13. Disadvantages to international division

a. Potential conflict between domestic and international operations b. A separation between domestic and international operations could lead to a lack of communication and coordination c. Preventing the design of products with both domestic and international appeal

16. Advantages of the functional structure

a. Promotes economies of scale b. 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 c. Encourages collaboration, efficiency, and quality within the function