Question 1

Discuss the three primary approaches to coordination and control as represented by Japanese, American, and European companies.

Accepted Answer

The three primary approaches to coordina

Question 2

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

Accepted Answer

Globalization and global experience in m

Question 3

Innovation refers to the quality of collaboration across organizational units.

Accepted Answer

A) True 
 B)False

Question 4

Under what conditions should an organization consider a global geographic structure as opposed to a global product structure?

Accepted Answer

An organization should consider a global

Question 5

High uncertainty avoidance means that people accept inequality in power among institutions, organizations, and people.

Accepted Answer

A) True 
 B)False

Question 6

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 7

List the benefits that result from interunit collaboration.

Accepted Answer

Interunit collaboration refers to the co

Question 8

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

Question 9

Stage two is the global stage which means the company takes exports seriously and begins to think multidomestically.

Accepted Answer

A) True 
 B)False

Question 10

Some organizations create formal ____ positions to coordinate information and activities related to key customer accounts.

Accepted Answer

A)  functional manager 
B)  transnational team 
C)  network coordinator 
D)  division network 
A)  functional manager 
B)  transnational team 
C)  network coordinator 
D)  division network

Question 11

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 12

List the reasons why most organizations tap only a fraction of the potential that is available from the cross-border transfer of knowledge.

Accepted Answer

Organizations often tap only a fraction

Question 13

In the ____ stage, an international division has replaced the export department, and specialists are hired to handle sales, service, and warehousing abroad.

Accepted Answer

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

Question 14

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Accepted Answer

A) True 
 B)False

Question 15

The transnational model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

Accepted Answer

A) True 
 B)False

Question 16

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.
SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pages A3-A4.
-Reference Case 6.0. In a general sense, what do you see as the primary differences between horizontal corporations and functionally organized corporations? Apply your observations to the Ford case and comment on any difficulties you might see in Ford being able to adopt the philosophy and behavior of a horizontal corporation as they made the structural change CEO Trotman outlined.

Accepted Answer

Horizontal corporations are organized ar

Question 17

Discuss the national value systems.

Accepted Answer

National value systems refer to the set

Question 18

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 19

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.

Accepted Answer

I would recommend a joint venture as the

Question 20

Discuss each of the motivations for global expansion.

Accepted Answer

There are several motivations for global

Discuss the three primary approaches to coordination and control as represented by Japanese, American, and European companies.

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

Innovation refers to the quality of collaboration across organizational units.

Under what conditions should an organization consider a global geographic structure as opposed to a global product structure?

High uncertainty avoidance means that people accept inequality in power among institutions, organizations, and people.

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

List the benefits that result from interunit collaboration.

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?

Stage two is the global stage which means the company takes exports seriously and begins to think multidomestically.

Some organizations create formal ____ positions to coordinate information and activities related to key customer accounts.

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:

List the reasons why most organizations tap only a fraction of the potential that is available from the cross-border transfer of knowledge.

In the ____ stage, an international division has replaced the export department, and specialists are hired to handle sales, service, and warehousing abroad.

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

The transnational model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

Discuss the national value systems.

The global matrix structure:

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.

Discuss each of the motivations for global expansion.

Organizations and Organization Theory

Strategy, Organization Design, and Effectiveness

Fundamentals of Organization Structure

The External Environment

Interorganizational Relationships

Manufacturing and Service Technologies

Using It for Coordination and Control

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

Discuss the three primary approaches to coordination and control as represented by Japanese, American, and European companies.

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

Innovation refers to the quality of collaboration across organizational units.

Under what conditions should an organization consider a global geographic structure as opposed to a global product structure?

High uncertainty avoidance means that people accept inequality in power among institutions, organizations, and people.

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

List the benefits that result from interunit collaboration.

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?

Stage two is the global stage which means the company takes exports seriously and begins to think multidomestically.

Some organizations create formal ____ positions to coordinate information and activities related to key customer accounts.

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:

List the reasons why most organizations tap only a fraction of the potential that is available from the cross-border transfer of knowledge.

In the ____ stage, an international division has replaced the export department, and specialists are hired to handle sales, service, and warehousing abroad.

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

The transnational model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

Discuss the national value systems.

The global matrix structure:

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.

Discuss each of the motivations for global expansion.

Organizations and Organization Theory

Strategy, Organization Design, and Effectiveness

Fundamentals of Organization Structure

The External Environment

Interorganizational Relationships

Manufacturing and Service Technologies

Using It for Coordination and Control

Organization Size, Life Cycle, and Decline

Organizational Culture and Ethical Values

Innovation and Change

Decision Making Processes

Conflict, Power, and Politics

Filters