Chapter 11

Identify the factors that encourage the centralization of decision making in subsidiary operations. (Check all that apply.)

Large capital investment, large size, and relatively high significance given to multinational companies Strong volume-to-unit-cost relationship, high degree of technology, and highly competitive environment Low level of product diversification, homogeneous product lines, and strong importance attached to brand name, patent rights, name, etc.

Which of the following factors encourage the decentralization of decision making in subsidiary operations? (Check all that apply.)

Low interdependence between units and little experience in international business Large geographic distance between home office and subsidiary and more highly competent managers in host country

Identify the true statements about the decision-making process. (Check all that apply.)

Managerial involvement in this process depends on the structure of subsidiaries. Managerial involvement in this process depends on the locus of decision making. It is often linear by nature.

Identify the final step in the direct-sales model of personal computer (PC) manufacturing.

Manufacturers ship the PCs straight to customers.

In Germany, a legal system that requires workers and their managers to discuss major decisions is known as _____

codetermination

When multinational companies implement kaizen, they _____.

strive to attain continual improvement by using ongoing training

At present, personal computer (PC) firms must be more advanced than any other industry because _____.

technological changes occur at a relentless pace

According to Trompenaars and Hampden-Turner, which of the following is a management view regarding how a control strategy should be implemented?

An innovative strategy should be devised by using all the experience and intelligence that can be mobilized and then cascaded down the hierarchy.

Tatemae Honne It means following norms and doing the right thing. It means what an individual really wants to do.

It means following norms and doing the right thing. It means what an individual really wants to do.

In the context of the study of decision making, unlike in German teams, in Swedish teams _____.

decision making appeared less formal and more transparent

Identify the true statements about the decision-making process used in Japan called ringisei. (Check all that apply.)

A firm's decision is made at the top level after a detailed examination of the proposal through successively higher levels in the management hierarchy. A proposed decision is rejected or accepted through consensus at every level of the structure of management. Any alterations in a firm's routines and procedures, strategies, and tactics are organized by those directly concerned with those changes.

In the context of international management, _____ _____ involve the use of reports and other written forms of communication to control operations.

indirect controls

Which of the following views of management set forth by Trompenaars and Hampden-Turner about how a control strategy should be devised and implemented establishes a link between an external-directed strategy and an inner-directed one?

A master strategy should be created from proven successful attempts by motivating and combining the best.

Identify the true statements about the differences in control between U.S. multinational companies (MNCs) and European multinational companies (MNCs) according to a comparative study. (Check all that apply.)

Control in European MNCs favors short vertical spans or reporting channels from a foreign subsidiary to responsible positions in the parent. Control in European MNCs requires more decentralization of operating decision making than does control in U.S. MNCs.

Identify the differences between U.S. multinational companies (MNCs) and their European counterparts based on a comparative study. (Check all that apply.)

Control in U.S. MNCs emphasizes more the quantifiable, objective aspects of a foreign subsidiary, whereas control in European MNCs is generally used to measure more qualitative aspects. Control in U.S. MNCs needs centralized information-processing capability and large central staffs, whereas control in European MNCs requires capable expatriate managers who are willing to spend long periods of time abroad. Control in U.S. MNCs needs more precise plans and budgets in generating suitable standards for comparison, whereas control in European MNCs involves a high level of companywide understanding of what constitutes appropriate behavior.

Match the views of management set forth by Trompenaars and Hampden-Turner about how a control strategy should be devised and implemented (in the left column) with their characteristics (in the right column). Managers should determine the strategies that work and those that do not. Leaders should formulate an innovative strategy and then pass it down the hierarchy. It focuses most strongly on an internal control option. It strongly emphasizes an external-directed approach.

It strongly emphasizes an external-directed approach. It focuses most strongly on an internal control option.

In the context of international management, which of the following are true of French managers? (Check all that apply.)

They exhibit a tendency to become quite emotionally charged rather quickly if challenged and exert a lot of control at every level. They expend a lot of time searching for and evaluating alternatives and exhibit rationality and intelligence in each option.

Which of the following is the first step in the manufacturing of personal computers (PCs) according to the traditional model?

A manufacturer orders parts for the PCs based on sales forecasts.

In international management, in comparison to indirect controls, direct controls _____.

are used annually or semiannually

In international management, unlike direct controls, indirect controls _____.

are used to track performance on a monthly basis

In the context of international management, an evaluation tool that is used for identifying individuals with the potential to be promoted to or selected for higher-level positions is known as a(n)

assessment center

True or false: Cultural differences between home- and host-country managers do not lead to basic philosophic disagreements about the objectives and policies of international operations.

False

True or false: Financial performance evaluation of a foreign subsidiary or affiliate is usually not based on profit.

False

True or false: Total quality management (TQM) criticizes the empowerment of employees.

False

Which of the following management views regarding how a control strategy should be devised and implemented have been set forth by Trompenaars and Hampden-Turner? (Check all that apply.)

A broad thrust should be created using all the intelligence, experience, and information that can be mobilized. Managers should find the strategies that work and try to understand why certain strategies do not work. A master strategy should be created from proven successful attempts by motivating and combining the best.

Identify the simulation exercises that a typical assessment center would involve. (Check all that apply.)

A letter-writing exercise and preparation of a business plan In-basket exercises that require the attention of managers Exercises on business decisions in which participants compete in the same market A committee exercise that requires candidates to work as a team in decision making

Which of the following are the key characteristics of top management control in Great Britain identified by Horovitz? (Check all that apply.)

Control was used more for general guidance than for surveillance. Financial records were heavily emphasized and sophisticated. Top management tended to lay an emphasis on major problem areas.

Which of the following factors encourage the centralization of decision making in subsidiary operations? (Check all that apply.)

Fewer highly competent managers in host country and much experience in international business Small geographic distance between home office and subsidiary and high interdependence between units

Identify the examples of indirect controls in the context of international management. (Check all that apply.)

Financial statements, such as cash budgets, financial ratios, balance sheets, and income statements Monthly operating reports sent to the home office

In the context of the study of decision making conducted on German teams, which of the following are true of German teams as opposed to Swedish team? (Check all that apply.)

German teams were identified to be faster in decision making than Swedish teams. German teams had clearly marked responsibilities for individuals than Swedish teams.

Identify a finding of the study of decision making in teams composed of Germans and Swedes.

Germans were seen to be more willing to accept an unpopular decision or change than Swedish teams.

Identify the true statements about International Standards Organization (ISO) certification. (Check all that apply.)

It guarantees quality services and products. ISO 9000 certification is employed as a screening criterion for getting business in the U.S. It examines testing and inspection, purchasing, and training.

In an organizational context, which of the following Japanese terms means continuous improvement?

Kaizen

Identify the various forms of direct controls in the context of international management. (Check all that apply.)

Monthly management meetings held at office headquarters Designing an overseas unit that promptly responds to communications and home-office requests Visits by top executives to overseas subsidiaries or affiliates Finding out whom to send overseas to run units better

Centralized decision making Decentralized decision making Operating personnel are assigned the responsibility of making decisions. Most critical decision making occurs at the top management level.

Most critical decision making occurs at the top management level. Operating personnel are assigned the responsibility of making decisions.

Identify the true statements about total quality management (TQM). (Check all that apply.)

Multinational companies taking a TQM approach today are customer-driven. It has a major impact in the area of manufacturing. It is critical for achieving world-class competitiveness.

Which of the following was identified by Horovitz in top management control in Great Britain?

Operating units enjoyed a large amount of marketing autonomy.

Return measured by dividing profit by assets is referred to as _____ _____ _____ (ROI)

Return on Investment

A decision-making process that is used in Japan where decisions are made by consensus is known as _____.

Ringisei

Match the areas that are examined by the International Standards Organization (ISO) certification team (in the left column) with their descriptions (in the right column). Design Process Control Service Instruction for service functions or manufacturing Instructions for carrying out after-sales service Service or product specifications

Service or product specifications Instruction for service functions or manufacturing Instructions for carrying out after-sales service

Identify the factors that encourage the decentralization of decision making in subsidiary operations. (Check all that apply.)

Stable environment, moderate to low degree of technology, and weak volume-to-unit-cost relationship Small capital investment, small size, and relatively low importance to multinational companies Little importance attached to brand name, heterogeneous product lines, and high level of product diversification

Which of the following financial statements are required from subsidiaries for home offices to exert indirect controls on them? (Check all that apply.)

Statements put together to adhere to the accounting principles and standards needed by the home country Statements put together to meet the financial consolidation requirements of the home country Statements put together to meet the national accounting standards and procedures prescribed by law in the host country

Which of the following are the control problems that may arise when companies attempt to control their overseas operations to become coordinated and integrated units? (Check all that apply.)

The discord between the goals of corporate management and joint-venture partners The conflict between the objectives of a corporation and its overseas operation The differences in degrees of competence and experience in planning among overseas managers

Which of the following common themes of the best global firms have been identified by the consultants at the Hay Group? (Check all that apply.)

The firms see the development of one's career as an investment. The firms believe that the best people are attracted by success.

True or false: In the context of a finding on international management, the Japanese effectively used quality control circles (QCCs).

True

Identify the common themes of the best global firms as recognized by the consultants at the Hay Group. (Check all that apply.)

The top firms have precise knowledge of what they are looking for. The firms promote from within whenever possible and reward performance. The firms show genuine interest in what their employees think. The managers of the top firms take their mission statements seriously.

Identify a true statement about the Swedish teams who were part of a study of decision making on German teams and Swedish teams.

They exhibited informal work attitudes unlike the German teams.

In the context of international management, identify the true statements about German managers as examined by Horovitz. (Check all that apply.)

They made use of a large central staff for measuring performance. They focused attention on both large and small variances and employed very detailed control. They emphasized operational efficiency and placed heavy control on the production area.

In the context of international management, identify the true statements about Danish managers. (Check all that apply.)

They opt for alternatives that can be initiated and implemented quickly and still bring about the relative desired results. They tend to take a straightforward approach and are less emotionally responsive. They avoid spending much time analyzing or searching alternatives for optimizing production.

In the context of international management, identify a true statement about Danish managers. (Check all that apply.)

They refrain from expending time on searching or analyzing alternatives to optimize production.

Which of the following is a true statement about German managers as examined by Horovitz in the context of international management?

They used the control process as a surveillance and policing instrument.

True or false: In the context of the decision-making process in Japan, most managers know how to respond to suggestions from the top and act accordingly.

True

True or false: In international management, controlling and decision making are often interlinked functions.

True

True or false: In the French managerial system, middle managers contend to receive the praise of the upper management.

True

In international management, unlike indirect controls, direct controls _____.

are more expensive

In the context of international management, the process of evaluating results in relation to plans or objectives and deciding what action, if any, to take is known as _____.

controlling

In an organizational context, the process of choosing a course of action among alternatives is known as the_____-_____ _____

decision-making process

In the context of international management, the use of face-to-face or personal meetings for the purpose of monitoring operations is known as _____

direct controls

Identify the models of personal computer (PC) manufacturing business that are the most common at present. (Check all that apply.)

direct sales model hybrid model

In an organizational context, the process of giving individuals and teams the resources, information, and authority they need to develop ideas and effectively implement them is known as _____

empowerment

Arrange the steps involved in the traditional model of personal computer (PC) manufacturing in the correct order of occurrence. (Place the first step at the top.) Distrubuters order the PC units and get them shipped to their warehouses retailers order the PC units and get them shipped Customers purchase the PC manufactuerers warehouse the PC parts until theyh need them manufactuerers build the PC and store them in warehouses

manufactuerers warehouse the PC parts until theyh need them manufactuerers build the PC and store them in warehouses Distrubuters order the PC units and get them shipped to their warehouses retailers order the PC units and get them shipped Customers purchase the PC

_____ and loss (P&L) is the amount remaining after all expenses are deducted from total revenues.

profit

The most significant part of the return on investment (ROI) calculation is _____.

profits

In an organizational context, a group of workers who meet on a regular basis to discuss ways of improving the quality of work is known as a(n)

quality control circle

In the context of the study of decision making conducted on Swedish and German teams, unlike in Swedish teams, in German teams _____.

the decision authority of an expert in the field largely dominates the decision-making process

_____ _____ _____ TQM) is an organizational strategy and accompanying techniques that result in delivery of high-quality products or services to customers.

total quality management