Exam 12: Strategy and Organization in the International Firm

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and ________ in order to take advantage of similarities between countries.

Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm to function as intended.

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 most likely supports Extra Clean implementing a multidomestic strategy instead of a global strategy?

In a multidomestic strategy, there is maximum pressure on headquarters staff because there is little incentive for decision making by individual managers.

A ________ strategy is characterized by substantial control over country operations by headquarters in order to increase efficiency and integration.

Describe four traits that characterize visionary leaders, and explain why these traits are especially necessary for a firm that operates within a global matrix structure.

Managing a firm's value-chain activities on a country-by-country basis to address diverse opportunities and risks is known as ________.

A multidomestic industry is one in which competition takes place on a regional or worldwide basis.

Which of the following would exert pressure on a firm to become locally responsive?

GramTech Solutions is a software development firm based in the United States. The firm's CEO, David Ghaster, wants to open an outlet in India. Being a visionary leader, he would ________.

Which of the following best characterizes the concept of global integration?

A firm's subsidiary is the primary contributor to ________.

The computer industry is an example of a ________.

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 most likely supports Extra Clean implementing a transnational strategy?

Explain the benefits of a multidomestic strategy to firm internationalization. What are some of the disadvantages to this approach?

Brogj Inc. is a cosmetics manufacturer based in California, United States. The firm varies its products to suit the different conditions abroad. Brogj is an example of a ________.

Strategic global teams identify or implement initiatives that enhance the long-term direction of the firm in its global industry.

Quik Meal Structure (Scenario) Quik Meal is a fast-growing MNE that manufactures and sells energy gels for consumption by serious athletes, such as marathoners and triathletes. The energy gels produced by Quik Meal taste much better than the gels sold by other firms, which has led to an increase in sales. Managers and executives with Quik Meal need to determine the best organizational structure for the young firm. Quik Meal has subsidiaries in Japan and Brazil, while company headquarters are based in San Francisco. -Which of the following questions would be more important for Quik Meal executives to evaluate when determining whether to centralize or decentralize the firm's structure?

Companies that proactively build a global organizational culture subscribe to subjective ethical and moral standards.

In order to facilitate shared decision-making between headquarters and country managers, corporate representatives should often visit subsidiary locations.