Exam 12: Strategy and Organization in the International Firm

The home replication strategy is often employed as a means of extending a product's life cycle in a foreign market and to replicate home-market success.

The managerial routines, behaviors, and mechanisms that allow a firm to function as intended are known as ________.

Sourcing inputs from large-scale, centralized suppliers allows firms to obtain economies of scale, more consistent quality, lower costs, and generally more efficient operations.

Extra Clean Strategy (Scenario) Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over 20 years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase soap companies in Taiwan and India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations. Recent reports from managers in the foreign facilities indicate that Extra Clean sales in Taiwan and India are low due to a lack of local responsiveness. Extra Clean managers from Ireland, India, and Taiwan are having a teleconference in an attempt to devise a strategy to improve the profitability of Extra Clean. -Which of the following questions would be most important for Extra Clean managers to evaluate the integration-responsiveness framework?

A centralized approach means substantial autonomy and decision-making authority are delegated to the firm's subsidiaries around the world.

One of the advantages of a global matrix structure is that it provides better management of subsidiaries or products, or operations in many foreign markets.

Global integration is a plan of action that accounts for competition on a country-by-country basis.

In which of the following organizational structures does an employee at a foreign subsidiary report to both a local manager and a corporate manager?

Global strategy is an approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness.

________ refers to lowering the cost of the firm's operations and activities on a global scale.

Firms that emphasize global integration make and sell ________.

Efficiency refers to emphasizing consensus-based decision making and problem solving, in which managers readily share their knowledge.

Strategy is ________.

Managers who exemplify an open-minded attitude and who appreciate cultural diversity are described as applying a global ________.

During the recent global financial crisis, efficiency and flexibility became particularly important to the success of multinational firms.

Which of the following best supports the decision by the Ace board of directors to hire Tanya as the CEO?

Contrast the strategies of multidomestic industries and global industries. Why is there a difference in strategies between the two industries? Provide an example for illustration.

Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share knowledge and learn from each other.

Which of the following is an advantage of a multidomestic strategy?

International division managers usually oversee ________.