Exam 15: Managing Global Systems
You work for a business consulting firm, and you have been asked to advise Bamboo Home, a home furniture retailer on implementing a global information systems. What general benefits can Bamboo Home expect from a globalized system?
Benefits in globalizing include superior management and coordination. This may not show up on balance sheets, but will affect profitability in the long run. Related benefits are the ability to switch suppliers quickly if there is a crisis and the ability to use excess capacity in one region to fulfill demand in another. Additionally, they can expect major improvements in production, operation, and supply and distribution. Value-adding activities can be concentrated in regions where they are most economical and efficient. Also, with global systems, fixed costs around the world can be amortized over a much larger customer base. In addition, corporate funds can be used over a much larger capital base.
How does the Internet benefit the development of a global information system? Should all global systems be based on the Internet?
The Internet allows anyone connected to it to communicate and compute at any time, or anywhere. Satellite systems, digital cell phones, and personal communications services will make it even easier to coordinate work and information in many parts of the globe that cannot be reached by existing ground-based systems. Companies can use Internet technology to construct virtual private networks to reduce wide-area networking costs and staffing requirements. If it wishes, the company can outsource the virtual private network to an Internet service provider.
All global systems can't be based primarily on the Internet because currently not all countries have the same access to the Internet. Additionally, high-traffic volumes at certain times of the day in various regions may impede responsiveness.
Franchise companies have typically had ________ systems.
A
In a multinational business strategy, the ________ business function is decentralized, dispersed to foreign units.
Micromarketing describes the direct marketing of products to individuals rather than groups.
As a firm moves from local option systems to regional and global systems
One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.
Of the following, which is not one of the three central principles recommended in this chapter for a firm organizing itself for international business?
Global markets, production, and administration create the conditions for powerful global economies of ________.
Which of the following is not one of the principle problems of international networks?
A powerful strategic advantage for a globalized firm is lowered cost factors in production.
Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis?
What are the organizational principles a company should follow to develop a global company and its information systems support structure? Do you agree? Would you change these principles, or add others? Support your answer.
The chapter outlines three steps in developing an effective global system solution. Which of the following is not one of these steps?
List at least four general cultural factors and four specific business factors driving global business. Which two factors (one of each) do you feel are most problematic at the current moment? Why?
In terms of global business strategy and structure, a multinational company will use a policy of
You are working for a global electronic parts manufacturing company with divisions in Taiwan, Malaysia, Australia, and Germany, that has embarked on developing a global enterprise system. To ensure that overseas divisions comply with the new system, they are considering a cooptation strategy in which they will permit each country unit the opportunity to develop one transnational application first in its home territory, and then throughout the world. What are the benefits and drawbacks to this approach? Are there any other solutions for the company's cooptation strategy?
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