Exam 9: Entry Strategies and Organizational Structures

A global functional division structure is used primarily by:

In terms of cultural control in a global area division:

Formalization is an organizational characteristic that assigns individuals to specific, well-defined tasks.

Discuss the organizational characteristics of formalization, specialization and centralization.

_____ is the use of defined structures and systems in decision-making, communicating and controlling.

The equity joint venture:

At the center of the _____ are nodes, which are units charged with coordinating product, functional and geographic information.

The nonequity venture:

Franchising provides the franchisor with a new stream of income and the franchisee with a time-proven concept and products that can be quickly brought to market.

In most companies, mutual adjustment is achieved by assigning people to a specific project and having them meet face-to-face and work out a plan of action of designing the new product.

A structure under which global operations are organized on a geographic rather than a product basis is referred to as a(n):

The primary reason for the use of _____ is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners.

The primary reason for the use of licensing agreements is a desire by the MNC for total control over its products in overseas markets.

One disadvantage of the global product division structure is the necessity of duplicating facilities and staff personnel within each division.

A disadvantage of the international division structure is that it separates a firm's domestic and international managers, which can result in two different camps with divergent objectives.

This is an agreement in which two or more partners own and control an overseas business.

An advantage of the global area division structure is that it allows the division manager to cater to the tastes of the local market and make rapid decisions to accommodate environmental changes.

Centralization is a management system in which important decisions are made at the top.

The assignment of work to groups of departments where individuals are collectively responsible for performance is referred to as:

A structural arrangement in which domestic divisions are given worldwide responsibility for product groups is referred to as a(n):