International Business - Chapter 11

________ teams can help break down barriers between departments and reorganize operations around processes in an organization. A) Cross-functional B) Self-managed C) Virtual D) Global

A) Cross-functional

Scenario: TeleToys Inc. TeleToys Inc., a U.S.-based company, recently opened eighteen new toy stores in Brazil, acquired a women's clothing company in Canada, and closed its men's clothing line in Australia. The company has a structure that organizes its global operations into geographic regions. Which of the following strategies should TeleToys follow if it wants buyers to perceive its products as unique? A) differentiation strategy B) low-cost leadership strategy C) global strategy D) retrenchment strategy

A) differentiation strategy

What strategy is used when Noritake compares the ceramic tableware it makes (www.noritake.com) from common tableware by emphasizing its superior quality? A) differentiation strategy B) retrenchment strategy C) mass customization strategy D) stability strategy

A) differentiation strategy

Companies that typically design promotional campaigns and advertising strategies at their headquarters are most likely to follow a ________ strategy. A) global B) multidomestic C) blue ocean D) retrenchment

A) global

A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs. A) multidomestic B) blue ocean C) retrenchment D) global

A) multidomestic

Decentralized decision making is beneficial when ________. A) it aims to create a single global organizational culture B) fast-changing national business environments put a premium on local responsiveness C) all subsidiaries use the same inputs in production D) one subsidiary's output is another's input

B) fast-changing national business environments put a premium on local responsiveness

Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy. A) growth B) low-cost leadership C) blue ocean D) stability

B) low-cost leadership

________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives. A) Value chain analysis B) Stratification C) Planning D) Economic transition

C) Planning

A team in which employees from a single department take on responsibilities of their former supervisors is called a ________ team. A) virtual B) global C) self-managed D) cross-functional

C) self-managed

________ teams are self-managed teams that help reduce waste in the production processes of many manufacturing companies. A) Cross-functional B) Interdependent C) Virtual D) Quality-improvement

D) Quality-improvement

A global matrix structure is an organizational structure that divides worldwide operations according to a company's product areas. TRUE FALSE

FALSE

A global strategy entails having a separate strategy for each nation in which a company markets its products. TRUE FALSE

FALSE

Marketing and sales are examples of a support activities in the value chain of an organization. TRUE FALSE

FALSE

Companies that pursue the low-cost leadership position also try to contain administrative costs and the costs of activities, including marketing, advertising, and distribution. TRUE FALSE

TRUE

Core competencies are developed by organizations over long periods of time. TRUE FALSE

TRUE

Core competencies are the special ability of a company that competitors find extremely difficult or impossible to equal. TRUE FALSE

TRUE

In an International Area Structure, a general manager is assigned to each country or region, and each geographic division operates as a self-contained unit, with decision making the responsibility of the country or regional managers. TRUE FALSE

TRUE

Objectives of individual business units in an organization exclusively contain numerical targets of performance. TRUE FALSE

TRUE

Strategy is the set of planned actions that managers take to help a company meet its objectives. TRUE FALSE

TRUE

The purpose of a combination strategy is to mix growth, retrenchment, and stability strategies across a corporation's business units. TRUE FALSE

TRUE