Question 1

-Reference Organization Chart 6.2. In this organization:

Accepted Answer

A)  law, engineering, and finance are considered product groups. 
B)  because this organization is too complex, it would be better to return to a functional structure. 
C)  global product heads provide the function of a full-time staff integrator. 
D)  global product heads are usually accountable for profit and loss of their product in worldwide sales. 
A)  law, engineering, and finance are considered product groups. 
B)  because this organization is too complex, it would be better to return to a functional structure. 
C)  global product heads provide the function of a full-time staff integrator. 
D)  global product heads are usually accountable for profit and loss of their product in worldwide sales.

Question 2

____ refers to the number and variety of products and services a company offers, as well as the number and variety of regions, countries, and markets it serves.

Accepted Answer

A)  Economies of scale 
B)  Market potential 
C)  Scope 
D)  Development stage 
A)  Economies of scale 
B)  Market potential 
C)  Scope 
D)  Development stage

Question 3

A transnational team is a work group made up of multinational members whose activities span multiple countries.

Accepted Answer

A) True 
 B)False

Question 4

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. Draw out an organization chart showing the structure that Ford had been using; place in your chart the functional departments and geographic departments that are mentioned in the case. Then, in contrast, draw out an organization chart showing the relationships proposed in this case; again place in your chart the functional departments and geographic departments that are mentioned in the case. Label each organization chart.

Accepted Answer

Organization Chart 1: Ford's Current Str

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

Four primary factors motivate companies to expand internationally: profitability, economies of scale, economies of scope, and low-cost production factors.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Multinational 
B)  Global 
C)  Domestic 
D)  International 
A)  Multinational 
B)  Global 
C)  Domestic 
D)  International

Question 8

Which of the following strategies should an organization pursue if the forces for national responsiveness and the forces for global integration are high?

Accepted Answer

A)  Export 
B)  Multidomestic 
C)  Globalization 
D)  Globalization and multidomestic 
A)  Export 
B)  Multidomestic 
C)  Globalization 
D)  Globalization and multidomestic

Question 9

All of the following are characteristics that distinguish the transnational organization from other global organization forms except:

Accepted Answer

A)  assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships. 
B)  structures are stable. 
C)  subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole. 
D)  unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style rather than through formal structures and systems. 
A)  assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships. 
B)  structures are stable. 
C)  subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole. 
D)  unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style rather than through formal structures and systems.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

As companies begin to explore international opportunities, they typically start with an international division that grows into an export department.

Accepted Answer

A) True 
 B)False

Question 12

What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

Accepted Answer

There are several international strategi

Question 13

Functional managers coordinate across functions, whereas country managers coordinate among countries.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following means that product design, manufacturing, and marketing strategy are standardized throughout the world?

Accepted Answer

A)  Globalization strategy 
B)  Standardization strategy 
C)  Multidomestic strategy 
D)  Transnational strategy 
A)  Globalization strategy 
B)  Standardization strategy 
C)  Multidomestic strategy 
D)  Transnational strategy

Question 15

The global product division structure works best when pressure for decision-making balances the interests of both product standardization and geographical localization and when coordination to share resources is important.

Accepted Answer

A) True 
 B)False

Question 16

-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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

With a global geographic division structure, each division's manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world.

Accepted Answer

A) True 
 B)False

Question 20

Yum! Brands, which owns Pizza Hut, Taco Bell, KFC, and Long John Silver's, gets ____ of its profits from overseas.

Accepted Answer

A)  15 percent 
B)  33 percent 
C)  55 percent 
D)  70 percent 
A)  15 percent 
B)  33 percent 
C)  55 percent 
D)  70 percent

-Reference Organization Chart 6.2. In this organization:

____ refers to the number and variety of products and services a company offers, as well as the number and variety of regions, countries, and markets it serves.

A transnational team is a work group made up of multinational members whose activities span multiple countries.

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.

Four primary factors motivate companies to expand internationally: profitability, economies of scale, economies of scope, and low-cost production factors.

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

Which of the following strategies should an organization pursue if the forces for national responsiveness and the forces for global integration are high?

All of the following are characteristics that distinguish the transnational organization from other global organization forms except:

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

As companies begin to explore international opportunities, they typically start with an international division that grows into an export department.

What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

Functional managers coordinate across functions, whereas country managers coordinate among countries.

Which of the following means that product design, manufacturing, and marketing strategy are standardized throughout the world?

The global product division structure works best when pressure for decision-making balances the interests of both product standardization and geographical localization and when coordination to share resources is important.

-Reference Organization Chart 6.2. This structure is:

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

The global product structure:

With a global geographic division structure, each division's manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world.

Yum! Brands, which owns Pizza Hut, Taco Bell, KFC, and Long John Silver's, gets ____ of its profits from overseas.

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

-Reference Organization Chart 6.2. In this organization:

____ refers to the number and variety of products and services a company offers, as well as the number and variety of regions, countries, and markets it serves.

A transnational team is a work group made up of multinational members whose activities span multiple countries.

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.

Four primary factors motivate companies to expand internationally: profitability, economies of scale, economies of scope, and low-cost production factors.

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

Which of the following strategies should an organization pursue if the forces for national responsiveness and the forces for global integration are high?

All of the following are characteristics that distinguish the transnational organization from other global organization forms except:

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

As companies begin to explore international opportunities, they typically start with an international division that grows into an export department.

What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

Functional managers coordinate across functions, whereas country managers coordinate among countries.

Which of the following means that product design, manufacturing, and marketing strategy are standardized throughout the world?

The global product division structure works best when pressure for decision-making balances the interests of both product standardization and geographical localization and when coordination to share resources is important.

-Reference Organization Chart 6.2. This structure is:

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

The global product structure:

With a global geographic division structure, each division's manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world.

Yum! Brands, which owns Pizza Hut, Taco Bell, KFC, and Long John Silver's, gets ____ of its profits from overseas.

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