international management test review 8

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Site Title: International Management: Managing

Across Borders and Cultures, 8/e

Book Title: International Management: Managing

Across Borders and Cultures, 8/e

Book Author: Deresky

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Chapter 8 > Chapter Quiz

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May 20, 2013 at 3:50 AM (UTC/GMT)

Summary of Results

37% Correct of 30 Scored items:

11 Correct: 37%

19 Incorrect: 63%

3 questions not scored. 30 scored questions.

More information about scoring

1.Many firms-especially smaller ones-start their international involvement by

________.

Your Answer: exporting

2.A firm reorganizing into a domestic structure plus foreign subsidiary in one or more

countries should ________ in order to be effective.

Your Answer: stop exporting finished goods to emerging markets

Correct Answer: allow a great deal of autonomy to subsidiary managers

3.In the ________, foreign operations are integrated into the activities and

responsibilities of each department to gain operative specialization and economies

of scale.

Your Answer: domestic structure plus foreign subsidiary

Correct Answer: global functional structure

4.For firms with diversified product lines (or services) that have different

technological bases and that are aimed at dissimilar or dispersed markets, a

________ structure is considered to be more strategically advantageous.

Your Answer: global functional

Correct Answer: global divisional

5.A ________ refers to a self-contained business within a company with its own

functional departments and accounting systems.

Your Answer: value chain

Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader

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Correct Answer: strategic business unit

6.________ is a specific strategy that treats the world as one market by using a

standardized approach to products and markets.

Your Answer: Localization

Correct Answer: Globalization

7.In the context of internationalization, differentiation refers to ________.

Your Answer: engaging in mass production for capturing international markets

Correct Answer: focusing on and specializing in specific markets

8.Market concentration, innovation, and responsiveness to new opportunities in a

particular environment are advantages of the ________.

Your Answer: global functional structure

Correct Answer: global product structure

9.________ refers to a firm's focusing on and specializing in specific markets.

Your Answer: Integration

Correct Answer: Differentiation

10.To achieve ________, managers choose the manufacturing location for each

product based on where the best combination of cost, quality, and technology can

be attained.

Your Answer: segregation

Correct Answer: rationalization

11.Which of the following is true with regard to the organizational structure of global

e-businesses?

Your Answer: The organizational structure for global e-businesses, in particular

for physical products, typically involves a network of virtual

e-exchanges and "bricks and mortar" services.


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12.________ refers to the ability to manage across national boundaries, retaining local

flexibility while achieving global integration.

Your Answer: Outsourcing

Correct Answer: Transnational capability

13.Which of the following organizational structures would a transnational company

most likely have?

Your Answer: domestic structure plus export department

Correct Answer: matrix structure

14.Which of the following refers to an indirect coordinating mechanism?

Your Answer: the use of effective staffing practices

Correct Answer: sales quota

15.Which of the following is a direct coordinating mechanism?

Your Answer: the use of effective staffing practices

16.Strategic plans are abstract sets of decisions that cannot affect a company's

competitive position or bottom line until they are implemented.

Your Answer: True

17.Reorganizing is deemed unnecessary for firms keen on internationalization.

Your Answer: False

18.It is normative for small firms to start their international involvement by full-blown

global joint ventures.

Your Answer: False

19.To be effective, subsidiary managers in a firm with a domestic structure plus foreign

subsidiary should have a great deal of autonomy.


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Your Answer: False

Correct Answer: True

20.The global functional structure is most effective for firms with diversified product

lines that have different technological bases and that are aimed at dissimilar

markets.

Your Answer: True

Correct Answer: False

21.A buying center refers to a self-contained business within an organization, with its

own functional departments and accounting systems.

Your Answer: True


22.With the geographic structure, the focus is on marketing, since products can be

adapted to local requirements.

Your Answer: True

23.A matrix structure is a hybrid organization of overlapping responsibilities.

Your Answer: False

Correct Answer: True

24.In the matrix structure, the scope for confusion, communication problems, and

conflict remains minimal.

Your Answer: True


25.Although strategy may be the primary means to a company's competitive

advantage, the burden of realizing that advantage rests on the organizational

structure and design.

Your Answer: True


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26.A global e-network usually results in suppliers, subcontractors, manufacturers,

distributors, buyers and sellers all communicating in real time through cyberspace.

Your Answer: True

27.Organizing for global product standardization does not necessitate close

coordination among the various countries involved.

Your Answer: True


28.When a company makes drastic changes in its goals, strategy, or scope of

operations, it will usually also need a change in organizational structure.

Your Answer: True

29.A transnational company typically uses a bureaucratic organizational structure.

Your Answer: True


30.In the transnational network structure, decision-making control is centralized to key

network nodes, greatly reducing emphasis on bureaucratic control.

Your Answer: True

31.Explain the different stages of structural evolution that companies go through.

Your Answer:

bl

Historically, a firm reorganizes as it internationalizes to accommodate new

strategies. The structure typically continues to change over time with growth and

with increasing levels of investment or diversity and as a result of the types of entry

strategy chosen.

The typical ways in which firms organize their international activities are shown in

the following list.

(Larger companies often use several of these structures in different regions or parts

of their organization.)

1. Domestic structure plus export department

2. Domestic structure plus foreign subsidiary


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3. International division

4. Global functional structure

5. Global product structure

6. Matrix structure

Many firms, especially smaller ones, start their international involvement by

exporting. They may simply use the services of an export management company for

this, or they may reorganize into a simple domestic structure plus export

department. To facilitate access to and development of specific foreign markets, the

firm can take a further step toward worldwide operations by reorganizing into a

domestic structure plus foreign subsidiary in one or more countries. To be effective,

subsidiary managers should have a great deal of autonomy and should be able to

adapt and respond quickly to serve local markets. This structure works well for

companies with one or a few subsidiaries located relatively close to headquarters.

With further market expansion, the firm may then decide to specialize by creating

an international division, organized along functional, product, or geographic lines.

With this structure, the various foreign subsidiaries are organized under the

international division, and the subsidiary managers report to its head, who is

typically given the title "Vice President, International Division." This vice president,

in turn, reports directly to the CEO of the corporation. The creation of an

international division facilitates the beginning of a global strategy. It permits

managers to allocate and coordinate resources for foreign activities under one roof,

and thus enhances the firm's ability to respond, both reactively and proactively, to

market opportunities.

32.Briefly describe the various emergent structural forms.

Your Answer:

bl

Companies are increasingly abandoning rigid structures in an attempt to be more

flexible and responsive to the dynamic global environment.

Interorganizational networks: Whether the ever-expanding transnational linkages of

an MNC consist of different companies, subsidiaries, suppliers, or individuals, they

result in relational networks. These networks may adopt very different structures of

their own because they operate in different local contexts within their own national

environments. By regarding the MNC's overall structure as a network of

interconnected relations, its organizational design imperatives at both global and

local levels can be more realistically considered.

Global e-corporation network structure: The organizational structure for global

e-businesses, in particular for physical products, typically involves a network of

virtual e-exchanges and "bricks and mortar" services, whether those services are

in-house or outsourced. This structure of functions and alliances makes up a

combination of electronic and physical stages of the supply chain network

Transnational corporation network structure: To address the globalization-

localization dilemma, firms that have evolved through the multinational form and

the global company are now seeking the advantages of horizontal organization in

the pursuit of transnational capability, that is, the ability to manage across national

boundaries, retaining local flexibility while achieving global integration. This

capability involves linking foreign operations to each other and to headquarters in a

flexible way, thereby leveraging local and central capabilities.

33.What are direct and indirect coordinating mechanisms?


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Your Answer:

bl

Direct mechanisms that provide the basis for the overall guidance and management

of foreign operations include the design of appropriate structures and the use of

effective staffing practices. Other direct mechanisms are visits by head-office

personnel and regular meetings to allow employees around the world to consult and

troubleshoot.

Indirect coordinating mechanisms typically include sales quotas, budgets, and other

financial tools, as well as feedback reports, which give information about the sales

and financial performance of the subsidiary for the last quarter or year.

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international management test review 8

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