Question 1

List and discuss the characteristics that distinguish the transnational organization from other global organization forms.

Accepted Answer

Transnational organizations are distinct

Question 2

List the benefits that result from interunit collaboration.

Accepted Answer

Interunit collaboration refers to the co

Question 3

Building a global presence expands an organization's scale of operations, enabling it to realize economies of scale.

Accepted Answer

A) True 
 B)False

Question 4

European companies typically take a decentralized approach to coordination and control.

Accepted Answer

A) True 
 B)False

Question 5

To meet new competitive threats, many manufacturing firms are emphasizing the ability to customize their products to meet specific needs which requires a greater emphasis on global responsiveness.

Accepted Answer

A) True 
 B)False

Question 6

In the ____ stage of international evolution, explosion occurs as international operations take off.

Accepted Answer

A)  global 
B)  domestic 
C)  multinational 
D)  international 
A)  global 
B)  domestic 
C)  multinational 
D)  international

Question 7

Nestle SA gets most of its sales from outside the "home" country of Switzerland, and its employees are spread all over the world. The CEO is Belgian, and the chairman was born in Austria, and more than half of the company's managers are non-Swiss. Nestle has hundreds of brands and has production facilities or other operations in almost every country in the world. Nestle is in the _____ stage of international development.

Accepted Answer

A)  multinational 
B)  international 
C)  domestic 
D)  global 
A)  multinational 
B)  international 
C)  domestic 
D)  global

Question 8

When forces for both global standardization and local responsiveness in many countries are low, simply using an international division with the domestic structure is an appropriate way to handle international business.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except:

Accepted Answer

A)  barriers of language, cultural, and geographic distances. 
B)  lack of trust among people at different locations. 
C)  divisions sometimes view knowledge and innovation as power and want to hold onto it. 
D)  economies of scope can increase a company's market power as compared to competitors. 
A)  barriers of language, cultural, and geographic distances. 
B)  lack of trust among people at different locations. 
C)  divisions sometimes view knowledge and innovation as power and want to hold onto it. 
D)  economies of scope can increase a company's market power as compared to competitors.

Question 10

Which of the following is not a primary factor that motivates companies to expand internationally?

Accepted Answer

A)  Cheaper production factors 
B)  Smaller number of distribution channels 
C)  Economies of scale 
D)  Economies of scope 
A)  Cheaper production factors 
B)  Smaller number of distribution channels 
C)  Economies of scale 
D)  Economies of scope

Question 11

Many large international companies are moving toward a multidomestic model of organization.

Accepted Answer

A) True 
 B)False

Question 12

The global product structure works best when a division handles products that:

Accepted Answer

A)  are technologically dissimilar. 
B)  can be standardized for marketing worldwide. 
C)  obsolete in one country, but not in another. 
D)  cheap and easy to produce. 
A)  are technologically dissimilar. 
B)  can be standardized for marketing worldwide. 
C)  obsolete in one country, but not in another. 
D)  cheap and easy to produce.

Question 13

The second stage of international evolution, "International Stage," will usually be structured with a domestic structure with an export department.

Accepted Answer

A) True 
 B)False

Question 14

In one survey, 70 percent of global companies reported that the most important function of corporation headquarters was to:

Accepted Answer

A)  make shareholders happy. 
B)  provide enterprise leadership. 
C)  provide extensive training. 
D)  develop new goals and visions for the company frequently. 
A)  make shareholders happy. 
B)  provide enterprise leadership. 
C)  provide extensive training. 
D)  develop new goals and visions for the company frequently.

Question 15

Compare and contrast the global product division structure and global matrix structure. Draw a diagram of each.

Accepted Answer

The global product division structure an

Question 16

The global matrix structure:

Accepted Answer

A)  will increase horizontal coordination, but will decrease vertical coordination. 
B)  works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. 
C)  commonly utilizes matrix bosses as functional and product heads. 
D)  is usually found in firms that have reached the "international stage" of international evolution. 
A)  will increase horizontal coordination, but will decrease vertical coordination. 
B)  works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. 
C)  commonly utilizes matrix bosses as functional and product heads. 
D)  is usually found in firms that have reached the "international stage" of international evolution.

Question 17

The global product structure:

Accepted Answer

A)  utilizes country managers who are accountable for profit and loss of every product. 
B)  fits well with customization of production or marketing. 
C)  may result in competition among product divisions. 
D)  will insure that all countries are covered well. 
A)  utilizes country managers who are accountable for profit and loss of every product. 
B)  fits well with customization of production or marketing. 
C)  may result in competition among product divisions. 
D)  will insure that all countries are covered well.

Question 18

A company typically shifts its interest from domestic activity to exporting in the 3rd stage (multinational) of international development.

Accepted Answer

A) True 
 B)False

Question 19

-Reference Organization Chart 6.2. This structure is:

Accepted Answer

A)  Global geographic division structure 
B)  Global matrix structure 
C)  Global product division structure 
D)  Global functional structure 
A)  Global geographic division structure 
B)  Global matrix structure 
C)  Global product division structure 
D)  Global functional structure

Question 20

When should a company begin using an international division? What problems are likely to be solved? As the company progresses in its international development, what problems will likely not be solved by this structure?

Accepted Answer

A company should begin using an internat

List and discuss the characteristics that distinguish the transnational organization from other global organization forms.

List the benefits that result from interunit collaboration.

Building a global presence expands an organization's scale of operations, enabling it to realize economies of scale.

European companies typically take a decentralized approach to coordination and control.

To meet new competitive threats, many manufacturing firms are emphasizing the ability to customize their products to meet specific needs which requires a greater emphasis on global responsiveness.

In the ____ stage of international evolution, explosion occurs as international operations take off.

When forces for both global standardization and local responsiveness in many countries are low, simply using an international division with the domestic structure is an appropriate way to handle international business.

All of the following are reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except:

Which of the following is not a primary factor that motivates companies to expand internationally?

Many large international companies are moving toward a multidomestic model of organization.

The global product structure works best when a division handles products that:

The second stage of international evolution, "International Stage," will usually be structured with a domestic structure with an export department.

In one survey, 70 percent of global companies reported that the most important function of corporation headquarters was to:

Compare and contrast the global product division structure and global matrix structure. Draw a diagram of each.

The global matrix structure:

The global product structure:

A company typically shifts its interest from domestic activity to exporting in the 3rd stage (multinational) of international development.

-Reference Organization Chart 6.2. This structure is:

When should a company begin using an international division? What problems are likely to be solved? As the company progresses in its international development, what problems will likely not be solved by this structure?

Organizations and Organization Theory

Strategy, Organization Design, and Effectiveness

Fundamentals of Organization Structure

The External Environment

Interorganizational Relationships

Manufacturing and Service Technologies

Using Information Technology for Control and Coordination

Organization Size, Life Cycle, and Decline

Organizational Culture and Ethical Values

Innovation and Change

Decision Making Processes

Conflict, Power, and Politics

Filters

Exam 6: Designing Organizations for the International Environment

List and discuss the characteristics that distinguish the transnational organization from other global organization forms.

List the benefits that result from interunit collaboration.

Building a global presence expands an organization's scale of operations, enabling it to realize economies of scale.

European companies typically take a decentralized approach to coordination and control.

To meet new competitive threats, many manufacturing firms are emphasizing the ability to customize their products to meet specific needs which requires a greater emphasis on global responsiveness.

In the ____ stage of international evolution, explosion occurs as international operations take off.

When forces for both global standardization and local responsiveness in many countries are low, simply using an international division with the domestic structure is an appropriate way to handle international business.

All of the following are reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except:

Which of the following is not a primary factor that motivates companies to expand internationally?

Many large international companies are moving toward a multidomestic model of organization.

The global product structure works best when a division handles products that:

The second stage of international evolution, "International Stage," will usually be structured with a domestic structure with an export department.

In one survey, 70 percent of global companies reported that the most important function of corporation headquarters was to:

Compare and contrast the global product division structure and global matrix structure. Draw a diagram of each.

The global matrix structure:

The global product structure:

A company typically shifts its interest from domestic activity to exporting in the 3rd stage (multinational) of international development.

-Reference Organization Chart 6.2. This structure is:

When should a company begin using an international division? What problems are likely to be solved? As the company progresses in its international development, what problems will likely not be solved by this structure?

Organizations and Organization Theory

Strategy, Organization Design, and Effectiveness

Fundamentals of Organization Structure

The External Environment

Interorganizational Relationships

Manufacturing and Service Technologies

Using Information Technology for Control and Coordination

Organization Size, Life Cycle, and Decline

Organizational Culture and Ethical Values

Innovation and Change

Decision Making Processes

Conflict, Power, and Politics

Filters