Exam 6: Designing Organizations for the International Environment

Which of these operates in truly global fashion, and the entire world is their marketplace?

Compare and contrast the typical alliances: licensing, joint ventures, and consortia.

Which of the following is not a primary segment of the global organizational challenge?

The global geographic structure divides the world into geographical regions, with each geographical division reporting to the CEO.

In general, services are less suitable for globalization because different customs and habits often require a different approach to providing service.

A ____ strategy would encourage production design, assembly, and marketing tailored to the specific needs of each country.

Which type of international strategic alliance, if any, would you recommend for a business that wanted to gain entry into China? Explain the reasons behind your choice.

Case 6.0 It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing that could take advantage of where Ford's strength was around the world. The company had been organized geographically into three relatively independent divisions--Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure. Simultaneously a new "program team facility" was being constructed so that all of Ford's new product development would be by teams. The new coupe Mustang was borne from an experimental cross-functional team that designed the product in less than three years compared to Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than comparable project budgets. -Reference Case 6.0. Identify the strategy given in our textbook that Ford appeared to be adopting. Describe advantages and disadvantages of that strategy for Ford. Why do you think CEO Trotman moved to that strategy?

____ are typical in highly volatile environments.

Which stage is export-oriented and in a competitive position?

Wheras the _____ divisions are typically organized along functional or product lines, the _____ division is organized according to geographic interests.

The management philosophy of transnational model is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.

Discuss each of the motivations for global expansion.

As organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries, managers face a tremendous ____ challenge.

The trend toward large organizations was initially sparked by the Industrial Revolution.

The "not-invented-here" syndrome makes some managers reluctant to tap into the know-how and expertise of other units.

Select any organization with which you are familiar--your college, the Toyota dealership down the road, a corporation where you work, etc. Analyze the global forces that influence the organization you selected. How should the organization respond to those global forces in order to gain international competitive advantage?

Why has globalization and global experience in management become so important to organizations?

The only way an organization can reasonably expect to be successful in different countries is to customize its products and services to suit the local interests, preferences, and values in each country.

Having a presence in multiple countries provides marketing power and synergy compared to the same size firm that has presence in fewer countries.