Exam 14: International Organization Design and Control

Since selling to foreign customers is not fundamentally different from selling to domestic ones, a firm's export department can get by knowing only a little about foreign markets.

Employees of Disneyland Paris felt the company was exercising overcontrol by applying the same grooming standards in Europe as in the United States.

Which of the following is a characteristic of the global product design?

The corollary approach is the final evolution a firm takes to become a global organization.

Which type of organizational design organizes the firm's activities around specific regions of the world?

Global area design is particularly useful for firms with a transnational corporate philosophy.

Derek is the international controller at Cabot Foods, a large MNE. Derek is most likely the most concerned about ________.

The global product design discourages duplication of functional-area skills.

Responsibility center control means that the firm creates unique control systems for each SBU.

What is the focus of organizational control?

Which design is the most common form of organizational design adopted by MNCs?

What is the most critical aspect of strategic control?

Explain the meaning of product knowledge.

What types of firms use the functional design?

Why is the control function important to the success or failure of an international business? What factors are necessary to understand before establishing a control system?

The ________ takes responsibility for overseeing international operations, marketing products, processing orders, working with foreign distributors, and arranging financing when necessary.

Garvey Enterprises, an MNC, uses a global product organizational design. Garvey manufactures and sells boating accessories to customers around the world. Which form does Garvey most likely use?

The fourth and final step in establishing an international control system is responding to deviations observed in step 3.

Which organization design is inappropriate for firms with few products and relatively stable markets?

What is coordination?