Chapter 17

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.

B) international division structure.

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.

B) flexibility, efficiency, and responsiveness.

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.

B) product knowledge and know-how.

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.

B) simply another geographic market.

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.

B) the cost can be prohibitive.

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) sprinklers B) fountains C) chimneys D) skyscrapers E) towers

C) chimneys

Organizations in order to be globally successful must be viewed as portfolio of: A) activities. B) businesses. C) competencies. D) products. E) policies.

C) competencies.

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. D) coordinated control. E) coordinated decision making.

C) considerable cost saving.

Which of the following does not describe the Toyota Production System (TPS)? A) jidoka B) 'just-in-time' C) fixed setup time D) built-in quality E) visualizing problems

C) fixed setup time

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.

C) impede information sharing.

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.

C) it is easy for competitors to imitate.

Primary stakeholders include all of the following except: A) top management. B) employees. C) media. D) suppliers. E) customers.

C) media.

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.

C) speed and commitment.

An important leadership task involves articulating all of the below mentioned points except: A) beliefs. B) values. C) status. D) policies. E) activities.

C) status.

Which of the following does not belong in a list of mass production in an automobile company such as Ford? A) changing value chains B) use of moving assembly line C) organized production machinery D) outsource from supplier specialists E) each worker was able to do more than craft producers

D) outsource from supplier specialists

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.

E) corporate social responsibility.

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.

E) develop their own core ideologies on moral principles.

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.

E) employee teamwork.

Which of the following is not the way U.S. auto mass producers operate? A) greater labor content B) less mechanization C) less flexible mechanization D) divide employees in discrete specialties E) lack of employee teamwork

E) lack of employee teamwork

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.

E) managers.

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.

E) regional management center.

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.

E) regional management center.

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.

E) to deliver success.

The differences between lean producers and U.S. mass producers in the way they deal with their respective dealers, distributors, and customers are as dramatic as the differences in the way they deal with their suppliers.

True

When Hershey created its international division in 2005, J.P. Bilbrey, the division's senior vice president, noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States.

True

Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. He explained that the speed of innovation that is required to compete in the world mandates that we must have seamless communication.

True

Being socially responsible is not only the right thing to do; it can distinguish a company from its industry peers.

True

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).

A) Nissan Motor (Japan).

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.

A) lean production.

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).

B) 3M (USA).

Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? A) Paul Krugman B) Kenichi Ohmae C) Tom Peters D) Michael Porter E) Kazuo Inamori

B) Kenichi Ohmae

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)

B) PepsiCo (USA)

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).

B) PepsiCo (USA).

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) increasing B) declining C) improving D) horizontal E) vertical

B) declining

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.

C) a cadre of globally oriented managers.

Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? A) Whirlpool B) Levi Strauss C) Pearson PLC D) ABB E) Gillette

D) ABB

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).

D) Coca-Cola (United States).

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.

D) Management lacks desire to scan the globe for opportunities and threats.

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).

D) Sony (Japan).

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.

D) appreciate the value of the NGOs dependence.

According to Carly Florina, former CEO of Hewlett-Packard, leadership is about: A) hierarchy. B) title. C) status. D) connecting. E) bragging.

D) connecting.

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.

D) decision making.

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.

D) human rights, labor, and the environment.

Which of the following assumptions does not belong in a list of characteristics of lean production? A) labor is more costly than machines B) set up time can be reduced C) minimize inventory to cut costs, waste D) maximize backwards integration E) inspection to prevent defective production

D) maximize backwards integration

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.

D) provide customer contacts.

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.

D) resolve conflicts and achieve integration.

The U.S. mass producers focus on long-term income and return on investment, whereas Japanese see the process in terms of the short-term perspective.

False

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.

E) China.

Which of the following is the best organization structure for global marketing? A) international division structure B) matrix C) geographic structure D) worldwide product division structure E) There is no single "best" structure.

E) There is no single "best" structure.

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

E) all of the above

Secondary shareholders include all of the following except: A) media. B) employees. C) local community groups. D) nongovernmental organizations. E) general business community.

B) employees.

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.

A) There are 200 million Chinese children studying English.

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.

A) adept at exchanging ideas.

Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? A) matrix structure B) international division structure C) geographic structure D) worldwide product division structure E) regional management center

A) matrix structure

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.

A) matrix structure.

A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.

False

Corporate social responsibility (CSR) refers to a company's obligation to pursue goals and policies that are in a company's best interest.

False

Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing declining sales of traditional electronics products, whereas Apple and Samsung have risen to prominence in the competitive landscape once dominated by the Chinese.

False

The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.

False

There is general agreement that the matrix design is the single best organization structure for global marketing.

False

Subaru's assembly plant in Indiana is the first "zero landfill" auto plant in the United States

True

The advantage of the mass producers lasted until the Japanese auto companies further revised the value chain and created lean production.

True

A key issue in global organization is how to achieve balance between autonomy and integration.

True

A major disadvantage of the regional management center is its cost.

True

A potential disadvantage of the organization on product basis is that the local input from individual country managers may be ignored, with the result that products will not be sufficiently tailored to local markets.

True

A stakeholder is any group or individual that is affected by, or takes an interest in, the policies and practices adopted by an organization.

True

According to Kenichi Ohmae's view of the world, there are 30 regions with populations ranging from 5 million to 20 million people. Based on this, China would be viewed as several distinct regions.

True

As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to break from traditional organization patterns.

True

Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment. This and other values reflect Unilever's philosophy of "doing well by doing good."

True

By the early 2000s, Sony's vaunted innovation and marketing machine was faltering due to the unanticipated rapid consumer acceptance of flat-panel wide-screen TV sets.

True

Des Moines, Iowa-based Meredith Corporation participates in international markets by means of foreign licensing agreements that are administered by a copyrights and contracts manager.

True

Despite the fact that Starbucks is widely admired for forward-thinking management policies, Global Exchange pressed the company to further demonstrate its commitment to social responsibility by selling Fair Trade coffee.

True

During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.

True

In developing countries, globalization's opponents accuse companies of placing intellectual property rights ahead of human rights.

True

Indra Nooyi, chair and chief executive of PepsiCo, is among the corporate leaders who are not native to the headquarters country.

True

Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

True

Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes.

True

Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.

True

One of the Corporate Social Responsibility (CSR) initiatives by IKEA's primary carpet supplier in India is to sponsor bridge schools intended to reduce child labor in India's carpet industry.

True

One of the forces restraining the growth of global business and global marketing is resistance to globalization.

True