Question 1

Which of the following characterizes the transnational model?

Accepted Answer

A)  using shared vision and values to achieve coordination in this horizontal structure 
B)  being one step short of the matrix in exploiting both global and local advantages for the corporation as well as multiple interrelated competitive issues 
C)  having a single headquarter and a single centre of control for each country and for each product line 
D)  not having a single corporate headquarter, but a clear hierarchical responsibility

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a characteristic of the global product organizational structure?

Accepted Answer

A)  It utilizes country managers who are accountable for profit and loss of every product. 
B)  It fits well with customization of production or marketing. 
C)  It may result in competition among product divisions. 
D)  It will ensure that all countries are covered well.

Question 4

An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a new entity that is created when two or more separate firms come together to share development and/or production costs?

Accepted Answer

A)  wholly owned subsidiaries 
B)  joint ventures 
C)  consortia 
D)  licensing agreements

Question 6

Which of the following is a characteristic of the global geographical organizational structure?

Accepted Answer

A)  It is most useful for new product lines. 
B)  It works well for products with rapidly changing technologies. 
C)  It works best if there are similar needs for the product across countries. 
D)  It may make product planning on a global scale challenging.

Question 7

Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large customer.

Accepted Answer

A) True 
 B)False

Question 8

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the term for groups of independent companies that come together to share skills, resources, costs, and access to one another's markets?

Accepted Answer

A)  joint ventures 
B)  cartels 
C)  alliances 
D)  consortia

Question 10

With what kind of products does the global product structure work best?

Accepted Answer

A)  products that are technologically dissimilar 
B)  products that can be standardized for marketing worldwide 
C)  products that are obsolete in one country, but not in another 
D)  products that are cheap and easy to produce

Question 11

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 development of 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 and that could take advantage of Ford's geographical strengths throughout 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 products cited above, 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 born 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 budgets for comparable projects.
SOURCE: Summarized from "Ford to Realign with a System of Global Chiefs," The Wall Street Journal, March 31, 1994, pp. A3-A4.
-Refer to Case 6.0. Comment on any difficulties Ford might encounter in adopting the philosophy and behaviour of a horizontal corporation as the company made the structural change CEO Trotman outlined.

Accepted Answer

The answer of Case 6.0
It was reported in the Wall...

Question 12

Which of the following is a popular approach to sharing development and production costs and penetrating new markets?

Accepted Answer

A)  consortia 
B)  licensing 
C)  joint ventures 
D)  franchising

Question 13

Discuss the global matrix structure. Give an example.

Accepted Answer

The answer of Discuss the global matrix structure. Give an...

Question 14

What type of strategy is being followed when a company such as Coca-Cola decides to use the same product design and advertising strategy throughout the world?

Accepted Answer

A)  multidomestic 
B)  consortia 
C)  focused 
D)  globalization

Question 15

What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries?

Accepted Answer

A)  knowledge transfer 
B)  differentiation 
C)  integration 
D)  development

Question 16

To meet new competitive threats, many manufacturing firms are emphasizing their ability to customize their products to meet specific needs, which requires a greater emphasis on global responsiveness.

Accepted Answer

A) True 
 B)False

Question 17

Under what conditions should an organization consider a global geographical structure as opposed to a global product structure?

Accepted Answer

The answer of Under what conditions should an organization consider...

Question 18

A transnational team is a work group comprising multinational members whose activities span multiple countries.

Accepted Answer

A) True 
 B)False

Question 19

Which types of organizations operate with the entire world as their marketplace?

Accepted Answer

A)  multidomestic firms 
B)  domestic organizations 
C)  governmental agencies 
D)  global companies

Exam 6: Designing Organizations for the International Environment

Which of the following characterizes the transnational model?

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

Which of the following is a characteristic of the global product organizational structure?

An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.

Which of the following is a new entity that is created when two or more separate firms come together to share development and/or production costs?

Which of the following is a characteristic of the global geographical organizational structure?

Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large customer.

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Which of the following is the term for groups of independent companies that come together to share skills, resources, costs, and access to one another's markets?

With what kind of products does the global product structure work best?

Which of the following is a popular approach to sharing development and production costs and penetrating new markets?

Discuss the global matrix structure. Give an example.

What type of strategy is being followed when a company such as Coca-Cola decides to use the same product design and advertising strategy throughout the world?

What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries?

To meet new competitive threats, many manufacturing firms are emphasizing their ability to customize their products to meet specific needs, which requires a greater emphasis on global responsiveness.

Under what conditions should an organization consider a global geographical structure as opposed to a global product structure?

A transnational team is a work group comprising multinational members whose activities span multiple countries.

Which types of organizations operate with the entire world as their marketplace?