Exam 14: The Organization of International Business

Firm ABC is pursuing a localization strategy that is focused on local responsiveness. Therefore, the need for integration and coordination between self-contained country subsidiaries is low.

A firm pursuing ________ will have a strong incentive to decentralize decision making.

The worldwide product division structure may create a lack of local responsiveness.

________ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

________ is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are

Consider the use of personal controls in international firms. In which type of firm is this control most common?

Explain the five reasons a firm should decentralize its decision making.

Norms are abstract ideas about what a group believes to be good, right, and desirable.

________ tends to be adopted by firms that are reasonably diversified.

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

________ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Organizational structure refers to the totality of a firm's organization.

Integration mechanisms are the

In practice, the dual hierarchy in a global matrix structure

Which of the following is more difficult for a leader?

________ refers to the location of decision-making responsibilities within a structure.

A ________ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

________ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Refreezing an organization should happen quickly.