Question 1

________ is the overall pattern of structural components and configurations used to manage the total organization.

Accepted Answer

A)  Organizational design 
B)  Functional design 
C)  Management 
D)  Strategy

Question 2

Which term refers to the process of linking and integrating functions and activities of different groups, units, or divisions?

Accepted Answer

A)  decentralization 
B)  coordination 
C)  subsidizing 
D)  channeling

Question 3

Which design is practical only when a firm has relatively few products or customers?

Accepted Answer

A)  global product design 
B)  global area design 
C)  global functional design 
D)  global matrix design

Question 4

British Airways is a single-business firm with company-wide function operations dedicated to marketing and operations, public affairs, human resources, and other basic functions. How could the organizational design of British Airways best be described?

Accepted Answer

A)  global product design 
B)  global area design 
C)  global functional design 
D)  global matrix design

Question 5

The global matrix design does not allow for flexibility.

Accepted Answer

A) True 
 B)False

Question 6

Product knowledge refers to the idea that managers must ________.

Accepted Answer

A)  understand the cultural, commercial, social, and economic conditions in each host country in which the firm does business 
B)  be aware of the competitive forces that have implications for global strategy in each market 
C)  comprehend features such as technological trends, customers needs, and competitive forces affecting the goods the firm produces 
D)  have access to coworkers with expertise in basic business functions such as production, marketing, finance, accounting, human resources management, and information technology

Question 7

Peak Manufacturing, an MNE, concentrates its organizational control system on the actual mechanics and processes the firm uses to develop strategic plans. Peak Manufacturing is using operations control.

Accepted Answer

A) True 
 B)False

Question 8

The level of decentralization or centralization used in a firm is fundamental to a firm's organizational design.

Accepted Answer

A) True 
 B)False

Question 9

The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.

Accepted Answer

A) True 
 B)False

Question 10

Most companies use a hybrid of the various organizational designs.

Accepted Answer

A) True 
 B)False

Question 11

What are the disadvantages of the global product design? Why is coordination especially problematic?

Accepted Answer

The answer of What are the disadvantages of the global...

Question 12

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

Accepted Answer

A)  ethnocentric approach 
B)  polycentric approach 
C)  geocentric approach 
D)  transnational approach

Question 13

Empowering a subsidiary's board promotes centralization.

Accepted Answer

A) True 
 B)False

Question 14

What is the meaning of functional knowledge?

Accepted Answer

The answer of What is the meaning of functional knowledge?...

Question 15

The ________ takes responsibility for overseeing international operations, marketing products, processing orders, working with foreign distributors, and arranging financing when necessary.

Accepted Answer

A)  corollary approach 
B)  export department 
C)  international division 
D)  global product design

Question 16

What is the focus of operations control?

Accepted Answer

The answer of What is the focus of operations control?...

Question 17

Why is it important for an international firm to develop and maintain an effective accounting system? What accounting issues are faced by firms with subsidiaries in multiple countries? How can these problems be addressed?

Accepted Answer

The answer of Why is it important for an international...

Question 18

What is the most critical aspect of strategic control?

Accepted Answer

A)  control of firm's financial resources 
B)  control of a firm's marketing plans 
C)  quality control 
D)  control of labor issues

Question 19

What is the meaning of area knowledge?

Accepted Answer

The answer of What is the meaning of area knowledge?...

Question 20

Responsibility control centers tend to follow a centralized decision-making system.

Accepted Answer

A) True 
 B)False

Exam 14: International Organization Design and Control

________ is the overall pattern of structural components and configurations used to manage the total organization.

Which term refers to the process of linking and integrating functions and activities of different groups, units, or divisions?

Which design is practical only when a firm has relatively few products or customers?

British Airways is a single-business firm with company-wide function operations dedicated to marketing and operations, public affairs, human resources, and other basic functions. How could the organizational design of British Airways best be described?

The global matrix design does not allow for flexibility.

Product knowledge refers to the idea that managers must ________.

Peak Manufacturing, an MNE, concentrates its organizational control system on the actual mechanics and processes the firm uses to develop strategic plans. Peak Manufacturing is using operations control.

The level of decentralization or centralization used in a firm is fundamental to a firm's organizational design.

The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.

Most companies use a hybrid of the various organizational designs.

What are the disadvantages of the global product design? Why is coordination especially problematic?

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

Empowering a subsidiary's board promotes centralization.

What is the meaning of functional knowledge?

The ________ takes responsibility for overseeing international operations, marketing products, processing orders, working with foreign distributors, and arranging financing when necessary.

What is the focus of operations control?

Why is it important for an international firm to develop and maintain an effective accounting system? What accounting issues are faced by firms with subsidiaries in multiple countries? How can these problems be addressed?

What is the most critical aspect of strategic control?

What is the meaning of area knowledge?

Responsibility control centers tend to follow a centralized decision-making system.