Exam 10: The Organization of Global Business

How are hybrid structures different from matrix structures? Explain.

________ is a particular kind of divisional structure that groups products into separate divisions according to their similarities or differences.

A global defense contractor needs deep functional skills as well as the ability to coordinate across the functions of each contract or project. For this example, the organizational structure that would best suit their needs would be a matrix structure.

Scenario - Windmere Technologies Windmere Technologies has been in operation since 1984.  Today, Windmere is actually considered to be a globally-based firm with corporate offices in thirteen foreign nations. There is not one office of this company with higher authority or more decision making power than any other of the thirteen in operation.  Windmere Technologies is recognized as a business leader in all thirteen nations in which it has corporate offices.  According to the CEO of the company, "Windmere considers the world to be its home base."   The management has done a good job of creating its organizational structure where people are grouped simultaneously by function and by division. Windmere is best known for its work in creating alternative energy sources.  As this is of vital concern to all nations of the world today, Windmere's ideas and products are welcomed by all nations. This business takes in revenues in excess of $8 billion per year and expects it to substantially increase in the future.Which one of the following would Windmere Technologies not claim as a purpose of its organizational structure?  

A(n)______ is a tool that people use to coordinate their actions to obtain something they seek or value.

A basic problem of the _____ structure is it is difficult to determine the responsibility and authority relationships between the functional and divisional managers.

_________ is an organizational structure that groups people together because they hold similar positions in a company, perform a similar set of tasks, or use the same kind of skills.

Global businesses with a hybrid structure are said to be organized by more than one dimension at the top level.

The primary advantage of the divisional structure is that it has very low operating and managing costs.

A global business is organized into four groups: Manufacturing, Research and Development, Finance, and Sales. This company uses a(n)______ structure.

The reason why some organizations reject a functional organizational structure is because they believe it renders them unable to respond to environmental changes that require coordination between functional areas, and because it offers each employee a restricted view of the organization's primary goal.

Explain the advantages and disadvantages of the divisional structure.

A product structure is one where an organization:

C.K. Prahalad postulates that stateless corporations represent the _____ stage of globalization.

Of the following, which is NOT an advantage of the functional structure?

There are typically _____ organizational structures for global business.

According to C.K. Prahalad, a global firm is in the third stage of globalization when it _____.

According to Carol Bartz, former CEO of Yahoo!, organizational structure can sometimes get in the way of innovation.

A business subunit that consists of a collection of functions or departments that share responsibility for producing a particular product or service is known as a(n)_____.

A market structure is a particular kind of divisional structure that groups products into separate divisions according to the needs of different customers.