Subtotal: $589.77

Organization Theory And Design 12th Edition by Richard L. Daft - Test Bank

Organization Theory And Design 12th Edition by Richard L. Daft - Test Bank   Instant Download - Complete Test Bank With Answers     Sample Questions Are Posted Below   1. _____ refers to the number and variety of products and services a company offers as well as the number and variety of regions, countries, and …

$19.99

Organization Theory And Design 12th Edition by Richard L. Daft – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

1. _____ refers to the number and variety of products and services a company offers as well as the number and variety of regions, countries, and markets it serves.

  a. Integrator
  b. Cooptation
  c. Domain
  d. Scope

 

ANSWER:   d
RATIONALE:   Feedback: Scope refers to the number and variety of products and services a company offers as well as the number and variety of regions, countries, and markets it serves.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-01 – 06-01
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

2. In the _____ stage of international development, market potential is limited and is primarily in the home country.

  a. domestic
  b. international
  c. multinational
  d. global

 

ANSWER:   a
RATIONALE:   Feedback: In the first stage of international development, the domestic stage, a company is domestically oriented, but managers are aware of the global environment and may want to consider initial foreign involvement to expand production volume and realize economies of scale. Market potential is limited and is primarily in the home country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

3. Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale. Hill Fog is in the _____ stage of international development.

  a. multinational
  b. international
  c. domestic
  d. global

 

ANSWER:   c
RATIONALE:   Feedback: Hill Fog is in the domestic stage of international development. In the first stage of international development, the domestic stage, a company is domestically oriented, but managers are aware of the global environment and may want to consider initial foreign involvement to expand production volume and realize economies of scale. Market potential is limited and is primarily in the home country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Apply

 

4. In the context of international development, _____ means competitive issues in each country are independent of other countries; a company deals with each country individually.

  a. domestic
  b. multidomestic
  c. multinational
  d. global

 

ANSWER:   b
RATIONALE:   Feedback: In the second stage of international development, the international stage, a company takes exports seriously and begins to think multidomestically. Multidomestic means competitive issues in each country are independent of other countries; the company deals with each country individually.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

5. Which of the following is a difference between the domestic and international stages of international development?

  a. The domestic stage is export-oriented, while the international stage is globally oriented.
  b. In the domestic stage, the market potential is limited, while in the international stage, the market potential is large.
  c. In the domestic stage, managers are concerned about international competitive positioning, while in the international stage, managers consider initial foreign involvement.
  d. The domestic stage is structural, while the international stage is functional.

 

ANSWER:   b
RATIONALE:   Feedback: In the first stage of international development, the domestic stage, a company is domestically oriented. In the second stage, the international stage, the company takes exports seriously and begins to think multidomestically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

6. In the _____ stage of international development, a company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries.

  a. domestic
  b. international
  c. multinational
  d. global

 

ANSWER:   c
RATIONALE:   Feedback: In the multinational stage of international development, a company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries. The organization obtains a large percentage of revenues from sales outside the home country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

7. Quidpro, a food and beverage company based in Germany, gets most of its sales from outside its home country. Its employees are spread all over the world. The CEO is Belgian, the chairman was born in Austria, and more than half of the company’s managers are non-Germans. The company has hundreds of brands and has production facilities or other operations in almost every country in the world. Quidpro is in the _____ stage of international development.

  a. multinational
  b. international
  c. domestic
  d. global

 

ANSWER:   d
RATIONALE:   Feedback: Quidpro is in the global stage of international development. In this stage, the company transcends any single country. The business is not merely a collection of domestic industries; rather, subsidiaries are interlinked to the point where competitive position in one country significantly influences activities in other countries. Truly global companies no longer think of themselves as having a single home country and, indeed, have been called stateless corporations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Apply

 

8. Penrose Inc. is an American corporation that provides business consulting, information technology, and outsourcing services. The company has extensive experience in a number of international markets and has established facilities in several foreign countries. Penrose Inc. is in the _____ stage of international development.

  a. multinational
  b. international
  c. domestic
  d. global

 

ANSWER:   a
RATIONALE:   Feedback: Penrose Inc. is in the multinational stage of international development. In this stage, the company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Apply

 

9. In the _____ stage of international development, a company transcends any single country.

  a. domestic
  b. international
  c. multinational
  d. global

 

ANSWER:   d
RATIONALE:   Feedback: The fourth and ultimate stage of international development is the global stage, which means a company transcends any single country. The business is not merely a collection of domestic industries; rather, subsidiaries are interlinked to the point where competitive position in one country significantly influences activities in other countries.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

10. _____ refers to the quality of collaboration across organizational units.

  a. Contingency
  b. Standardization
  c. Coordination
  d. Sustainability

 

ANSWER:   c
RATIONALE:   Feedback: As organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries, managers face a tremendous coordination challenge. Coordination refers to the quality of collaboration across organizational units.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-03 – 06-03
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Challenges of Global Design
KEYWORDS:   Bloom’s: Remember

 

11. The _____ means that product design, manufacturing, and marketing strategy are standardized throughout the world, which is less costly than creating different products for different markets.

  a. globalization strategy
  b. standardization strategy
  c. export strategy
  d. multidomestic strategy

 

ANSWER:   a
RATIONALE:   Feedback: The globalization strategy means that product design, manufacturing, and marketing strategy are standardized throughout the world, which is less costly than creating different products for different markets. For example, Black & Decker became much more competitive internationally when it standardized its line of power hand tools.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Remember

 

12. Which of the following is true of a globalization strategy?

  a. It encourages product design, assembly, and marketing tailored to the specific needs of each country.
  b. It can save a company money because it helps reap economy-of-scale efficiencies by standardizing product design and manufacturing.
  c. It divides the world into geographic regions, with each geographic division reporting to the CEO.
  d. It works best when pressure for decision making balances the interests of both product standardization and geographic localization.

 

ANSWER:   b
RATIONALE:   Feedback: A globalization strategy can save a company money because it helps reap economy-of-scale efficiencies by standardizing product design and manufacturing, using common suppliers, introducing products around the world faster, coordinating prices, and eliminating overlapping facilities.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

13. A(n) _____ means that competition in each country is handled independently of competition in other countries.

  a. globalization strategy
  b. standardization strategy
  c. export strategy
  d. multidomestic strategy

 

ANSWER:   d
RATIONALE:   Feedback: A multidomestic strategy means that competition in each country is handled independently of competition in other countries. Thus, a multidomestic strategy would encourage product design, assembly, and marketing tailored to the specific needs of each country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Remember

 

14. Which of the following is true of a multidomestic strategy?

  a. It allows a company to take responsibility for global operations in its specific product area.
  b. It encourages product design, assembly, and marketing tailored to the specific needs of each country.
  c. It delegates responsibility and decision-making authority in some areas, such as adapting products or services to meet local needs.
  d. It enables an organization to achieve multinational flexibility and rapid response.

 

ANSWER:   b
RATIONALE:   Feedback: A multidomestic strategy means that competition in each country is handled independently of competition in other countries. Thus, a multidomestic strategy would encourage product design, assembly, and marketing tailored to the specific needs of each country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

15. Which of the following is true of international divisions?

  a. They are typically organized along functional or product lines.
  b. They move organizations from more sophisticated international operations to domestic divisions.
  c. They have their own hierarchy to handle businesses in various countries.
  d. They sell products and services created by international operations in domestic markets.

 

ANSWER:   c
RATIONALE:   Feedback: As companies begin to explore international opportunities, they typically start with an export department that grows into an international division. The international division has its own hierarchy to handle business (licensing, joint ventures) in various countries, selling the products and services created by the domestic divisions, opening subsidiary plants, and in general moving the organization into more sophisticated international operations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

16. Which of the following is a difference between the international division and the domestic division of a company?

  a. The international division uses a global matrix structure, while the domestic division does not use a global matrix structure.
  b. The international division is organized according to geographic interests, while the domestic division is typically organized along functional or product lines.
  c. The international division is placed above other divisions and departments within the company, while the domestic division has a status equal to other major departments or divisions within the company.
  d. The international division does not have its own hierarchy to handle business, while the domestic division has its own hierarchy to handle business.

 

ANSWER:   b
RATIONALE:   Feedback: The international division has a status equal to the other major departments or divisions within the company. Whereas the domestic divisions are typically organized along functional or product lines, the international division is organized according to geographic interests.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

17. Which of the following structures is great for standardizing production and sales around the globe?

  a. Global matrix structure
  b. Global product structure
  c. Global dynamic structure
  d. Global geographic structure

 

ANSWER:   b
RATIONALE:   Feedback: In a global product structure, the product divisions take responsibility for global operations in their specific product area. The product structure is great for standardizing production and sales around the globe.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

18. Which of the following is true of a global product structure?

  a. It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
  b. It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions.
  c. It works best when pressure for decision making balances the interests of both product standardization and geographic localization.
  d. It enables a global firm to achieve aspects of both global uniformity and local diversification and responsiveness.

 

ANSWER:   a
RATIONALE:   Feedback: In a global product structure, the product divisions take responsibility for global operations in their specific product area. It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

19. Companies that use a _____ have typically been those with mature product lines and stable technologies.

  a. global dynamic structure
  b. global geographic structure
  c. global matrix structure
  d. global product structure

 

ANSWER:   b
RATIONALE:   Feedback: The global geographic structure divides the world into geographic regions, with each geographic division reporting to the CEO. Companies that use the global geographic structure have typically been those with mature product lines and stable technologies.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

20. Which of the following is true of a global matrix structure?

  a. It coordinates sales and marketing initiatives across all geographic locations.
  b. It divides the world into geographic regions, with each geographic division reporting to the CEO.
  c. It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
  d. It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions.

 

ANSWER:   d
RATIONALE:   Feedback: A global matrix structure provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions. The matrix works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

21. In a _____, for multinational corporations, the geographic distances for communication are greater and coordination is more complex than in other structures.

  a. global matrix structure
  b. global geographic structure
  c. global product structure
  d. global dynamic structure

 

ANSWER:   a
RATIONALE:   Feedback: In a global matrix structure, for multinational corporations, the geographic distances for communication are greater and coordination is more complex. The matrix works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Remember

 

22. The members of _____ come from different countries and meet face to face.

  a. multidomestic teams
  b. work teams
  c. virtual global teams
  d. intercultural teams

 

ANSWER:   d
RATIONALE:   Feedback: Typically, teams are of two types: intercultural teams, whose members come from different countries and meet face to face, and virtual global teams, whose members remain in separate locations around the world and conduct their work electronically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanism
KEYWORDS:   Bloom’s: Remember

 

23. In which of the following teams do members remain in separate locations around the world and conduct their work electronically?

  a. Virtual global teams
  b. Work teams
  c. Multidomestic teams
  d. Intercultural teams

 

ANSWER:   a
RATIONALE:   Feedback: Typically, teams are of two types: intercultural teams, whose members come from different countries and meet face to face, and virtual global teams, whose members remain in separate locations around the world and conduct their work electronically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanism
KEYWORDS:   Bloom’s: Remember

 

24. Which of the following is true of functional managers in successful international firms?

  a. They are involved in identifying and linking an organization’s expertise and resources worldwide.
  b. They coordinate various functional activities located within the country to meet the problems, opportunities, needs, and trends in the local market.
  c. They enable an organization to achieve multinational flexibility and rapid response.
  d. They help with the transfer of ideas, trends, products, and technologies that arise in one country.

 

ANSWER:   a
RATIONALE:   Feedback: In successful international firms, the role of top functional managers is expanded to include responsibility for coordinating across countries, identifying and linking the organization’s expertise and resources worldwide.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

25. Which of the following is a difference between functional managers and country managers?

  a. Functional managers provide integrated solutions for a large retail customer, while country managers provide integrated solutions for a small retail customer.
  b. Functional managers enable an organization to achieve multinational flexibility and rapid response, while country managers identify and link an organization’s expertise and resources worldwide.
  c. Functional managers coordinate information and activities related to key customer accounts, while country managers provide coordination on a regional basis that might include several countries.
  d. Functional managers coordinate across countries, while country managers coordinate across functions.

 

ANSWER:   d
RATIONALE:   Feedback: Whereas functional managers coordinate across countries, country managers coordinate across functions. In successful international firms, the role of top functional managers is expanded to include responsibility for coordinating across countries, identifying and linking the organization’s expertise and resources worldwide. A country manager for an international firm has to coordinate all the various functional activities located within the country to meet the problems, opportunities, needs, and trends in the local market, enabling the organization to achieve multinational flexibility and rapid response.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanism
KEYWORDS:   Bloom’s: Understand

 

26. Which of the following is true of country managers?

  a. They identify and link an organization’s expertise and resources worldwide.
  b. They enable a manufacturing organization to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large retail customer.
  c. They enable an organization to achieve multinational flexibility and rapid response.
  d. They reach out to various parts of the organization to resolve problems and coordinate activities across groups, divisions, or countries.

 

ANSWER:   c
RATIONALE:   Feedback: A country manager for an international firm has to coordinate all the various functional activities located within the country to meet the problems, opportunities, needs, and trends in the local market, enabling the organization to achieve multinational flexibility and rapid response.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

27. _____ provide coordination on a regional basis that might include several countries.

  a. Business integrators
  b. Network coordinators
  c. Functional managers
  d. Country managers

 

ANSWER:   a
RATIONALE:   Feedback: Some organizations use business integrators to provide coordination on a regional basis that might include several countries. These managers reach out to various parts of the organization to resolve problems and coordinate activities across groups, divisions, or countries.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanism
KEYWORDS:   Bloom’s: Remember

 

28. The _____ reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

  a. transformative model
  b. transnational model
  c. global model
  d. multidomestic model

 

ANSWER:   b
RATIONALE:   Feedback: The transnational model represents the most advanced kind of international organization. It reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Remember

 

29. _____ compel units to work together for the good of their own unit as well as the overall organization.

  a. Global teams
  b. Cross-subsidiary teams
  c. Transnational teams
  d. Intercultural teams

 

ANSWER:   b
RATIONALE:   Feedback: Mechanisms such as cross-subsidiary teams compel units to work together for the good of their own unit as well as the overall organization. Rather than being completely self-sufficient, each group has to cooperate to achieve its own goals.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Remember

 

30. The transnational model operates on a principle of _____.

  a. flexible centralization
  b. dynamic centralization
  c. global standardization
  d. local responsiveness

 

ANSWER:   a
RATIONALE:   Feedback: The transnational model operates on a principle of flexible centralization. It may centralize some functions in one country, some in another, yet decentralize still other functions among its many geographically dispersed operations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Remember

 

31. Companies that have a presence in multiple countries gain marketing power and synergy compared to the same-size firm that has a presence in fewer countries.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Companies that have a presence in multiple countries gain marketing power and synergy compared to the same-size firm that has a presence in fewer countries. For example, an advertising agency with a presence in several global markets gains a competitive edge serving large companies that span the globe.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-01 – 06-01
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Understand

 

32. In stage two of international development, the international stage, a company takes exports seriously and begins to think multidomestically.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: In stage two of international development, the international stage, a company takes exports seriously and begins to think multidomestically. Multidomestic means competitive issues in each country are independent of other countries; the company deals with each country individually.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-01 – 06-01
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Understand

 

33. When organizations enter the international arena, they encounter a lower level of internal and external complexity than anything experienced on the domestic front.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: When organizations enter the international arena, they encounter a greater level of internal and external complexity than anything experienced on the domestic front. Companies have to create a structure to operate in numerous countries that differ in economic development, language, political systems and government regulations, cultural norms and values, and infrastructure such as transportation and communication facilities.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-03 – 06-03
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Challenges of Global Design
KEYWORDS:   Bloom’s: Understand

 

34. Trickle-up innovation involves companies paying attention more than ever to the need for mechanisms that encourage sharing across a domestic enterprise.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Trickle-up innovation involves companies paying attention more than ever to the need for mechanisms that encourage sharing across the international enterprise.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-03 – 06-03
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Challenges of Global Design
KEYWORDS:   Bloom’s: Understand

 

35. In general, services are less suitable for globalization because different customs and habits often require a different approach to providing service.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Some products, such as Coca-Cola, are naturals for globalization because only advertising and marketing need to be tailored for different regions. In general, services are less suitable for globalization because different customs and habits often require a different approach to providing service.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

36. A globalization strategy can save a company money because it helps reap economy-of-scale efficiencies.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: A globalization strategy can save a company money because it helps reap economy-of-scale efficiencies by standardizing product design and manufacturing, using common suppliers, introducing products around the world faster, coordinating prices, and eliminating overlapping facilities.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

37. A global matrix structure is most suitable when companies need to respond to both global and local opportunities simultaneously.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: In many instances, companies need to respond to both global and local opportunities simultaneously, in which case a global matrix structure can be used. Part of the product line may need to be standardized globally and other parts tailored to the needs of local countries.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

38. In a global product structure, the product divisions take responsibility for global operations in their specific product area.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: A global matrix structure provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions. The matrix works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

39. A global matrix structure provides a way to achieve only horizontal coordination along two dimensions.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: A global matrix structure provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions. The matrix works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

40. A global matrix structure works best when coordination to share resources is less important.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: A global matrix structure works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important. The matrix can support a mixed globalization and multidomestic strategy.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

41. Global teams are cross-border work groups made up of multiskilled, multinational members whose activities span multiple countries.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Global teams are cross-border work groups made up of multiskilled, multinational members whose activities span multiple countries. They are also called transnational teams.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Remember

 

42. In intercultural teams, members remain in separate locations around the world and conduct their work electronically.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Global teams are of two types: intercultural teams, whose members come from different countries and meet face to face, and virtual global teams, whose members remain in separate locations around the world and conduct their work electronically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

43. In virtual global teams, members come from different countries and meet face to face.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Global teams are of two types: intercultural teams, whose members come from different countries and meet face to face, and virtual global teams, whose members remain in separate locations around the world and conduct their work electronically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

44. Without strong leadership, highly autonomous divisions can begin to act like coordinated parts of a global whole rather than independent companies.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Without strong leadership, highly autonomous divisions can begin to act like independent companies rather than coordinated parts of a global whole. To counteract this, top management may delegate responsibility and decision-making authority in some areas, such as adapting products or services to meet local needs, while maintaining strong control through centralized systems in other areas to provide the coordination and integration needed.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

45. Plans, schedules, and formal rules and procedures can help ensure greater communication among divisions and with headquarters.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Plans, schedules, and formal rules and procedures can help ensure greater communication among divisions and with headquarters as well as foster cooperation and synergy among far-flung units to achieve the organization’s goals in a cost-efficient way.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

46. Country managers help with the transfer of ideas, trends, products, and technologies that arise in one country and might have significance on a broader scale.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Whereas functional managers coordinate across countries, country managers coordinate across functions. Country managers also help with the transfer of ideas, trends, products, and technologies that arise in one country and might have significance on a broader scale.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

47. Network coordinators provide coordination on a regional basis that might include several countries.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Some organizations use business integrators to provide coordination on a regional basis that might include several countries. These managers reach out to various parts of the organization to resolve problems and coordinate activities across groups, divisions, or countries.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

48. Network coordinators coordinate information and activities related to key customer accounts.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: One of the coordination roles is that of formal network coordinator to coordinate information and activities related to key customer accounts. These coordinators would enable a manufacturing organization, for example, to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large retail customer.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

49. The sharing of ideas and technological innovations across units stimulates creativity and the development of new products and services.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The sharing of ideas and technological innovations across units stimulates creativity and the development of new products and services.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

50. The transnational model is useful for large, multinational companies with subsidiaries in many countries that try to exploit both global and local advantages.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The transnational model represents the most advanced kind of international organization. It reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts. The transnational model is useful for large, multinational companies with subsidiaries in many countries that try to exploit both global and local advantages.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Remember

 

51. The management philosophy of the transnational model is based on full divisional independence rather than interdependence.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: The management philosophy of the transnational model is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

52. The transnational model requires that managers be flexible in determining structural needs based on the benefits to be gained.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The transnational model requires that managers be flexible in determining structural needs based on the benefits to be gained. Some functions, products, and geographic regions by their nature may need more central control and coordination than others. In addition, coordination and control mechanisms will change over time to meet new needs or competitive threats.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

53. In a transnational structure, managers have a strategic role only for their division.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: In traditional structures, managers have a strategic role only for their division. In a transnational structure, various centers and subsidiaries can shape the company from the bottom up by developing creative responses and initiating programs in response to local needs, then dispersing those innovations worldwide.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

54. In traditional structures, various centers and subsidiaries can shape the company from the bottom up by developing creative responses.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: In traditional structures, managers have a strategic role only for their division. In a transnational structure, various centers and subsidiaries can shape the company from the bottom up by developing creative responses and initiating programs in response to local needs, then dispersing those innovations worldwide.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

55. In a transnational company, unification and coordination are achieved primarily through formal structures and systems rather than through shared vision and values.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: In a transnational company, unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style, rather than through formal structures and systems.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

56. Discuss in detail the three primary factors that motivate companies to expand internationally.

ANSWER:   In general, three primary factors motivate companies to expand internationally: economies of scale, economies of scope, and low-cost production factors.
Economies of Scale—Building a global presence expands an organization’s scale of operations, enabling it to realize economies of scale. The trend toward large organizations was initially sparked by the Industrial Revolution, which created pressure in many industries for larger factories that could seize the benefits of economies of scale offered by new technologies and production methods. Through large-volume production, these industrial giants were able to achieve the lowest possible cost per unit of production. However, for many companies, domestic markets no longer provide the high level of sales needed to maintain enough volume to achieve scale economies.
Economies of Scope—A second factor is the enhanced potential for exploiting economies of scope. Scope refers to the number and variety of products and services a company offers as well as the number and variety of regions, countries, and markets it serves.
Low-Cost Production Factors—The third major force motivating global expansion relates to factors of production. One of the earliest, and still one of the most powerful, motivations for U.S. companies to invest abroad is the opportunity to obtain raw materials, labor, and other resources at the lowest possible cost. Organizations have long turned overseas to secure raw materials that were scarce or unavailable in their home country.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-01 – 06-01
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Understand

 

57. Describe the four stages of international development.

ANSWER:   The four stages of international development are the domestic stage, the international stage, the multinational stage, and the global stage.
In stage one, the domestic stage, the company is domestically oriented, but managers are aware of the global environment and may want to consider initial foreign involvement to expand production volume and realize economies of scale. Market potential is limited and is primarily in the home country. The structure of the company is domestic, typically functional or divisional, and initial foreign sales is handled through an export department. The details of freight forwarding, customs problems, and foreign exchange are handled by outsiders.
In stage two, the international stage, the company takes exports seriously and begins to think multidomestically. Multidomestic means competitive issues in each country are independent of other countries; the company deals with each country individually. The concern is with international competitive positioning compared with other firms in the industry. At this point, an international division has replaced the export department, and specialists are hired to handle sales, service, and warehousing abroad. Multiple countries are identified as a potential market.
In stage three, the multinational stage, the company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries. The organization obtains a large percentage of revenues from sales outside the home country. Explosive growth occurs as international operations take off, and the company has business units scattered around the world along with suppliers, manufacturers, and distributors.

The fourth and ultimate stage is the global stage, which means the company transcends any single country. The business is not merely a collection of domestic industries; rather, subsidiaries are interlinked to the point where competitive position in one country significantly influences activities in other countries. Truly global companies no longer think of themselves as having a single home country and, indeed, have been called stateless corporations. This represents a new and dramatic evolution from the multinational company of the 1960s and 1970s. At this stage, ownership, control, and top management tend to be dispersed among several nationalities.

POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Remember

 

58. What is a joint venture? Explain why companies seek joint ventures.

ANSWER:   A joint venture is a separate entity created with two or more active firms as sponsors. This is a popular approach to sharing development and production costs and penetrating new markets. Joint ventures may be with either customers or competitors. For example, competing firms Sprint, Deutsche Telecom, and Telecom France cooperate with each other and with several smaller firms in a joint venture that serves the telecommunication needs of global corporations in 65 countries.
Companies often seek joint ventures to achieve production cost savings through economies of scale, to share complementary technological strengths, to distribute new products and services through another country’s distribution channels, or to take advantage of a partner’s knowledge of local markets.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-02 – 06-02
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Entering the Global Arena
KEYWORDS:   Bloom’s: Understand

 

59. Why are functional structures used less frequently worldwide?

ANSWER:   Although functional structures are often used domestically, they are less frequently used to manage a worldwide business. Lines of functional hierarchy running around the world would extend too long, so some form of product or geographic structure is used to subdivide the organization into smaller units. Firms typically start with an international department and, depending on their strategy, later use product or geographic division structures or a matrix.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-04 – 06-04
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Understand

 

60. What is a global product structure?

ANSWER:   In a global product structure, the product divisions take responsibility for global operations in their specific product area. This is one of the most commonly used structures through which managers attempt to achieve global goals because it provides a fairly straightforward way to effectively manage a variety of businesses and products around the world. Managers in each product division can focus on organizing for international operations as they see fit and directing employees’ energy toward their own division’s unique set of global problems or opportunities. In addition, the structure provides top managers at headquarters with a broad perspective on competition, enabling the entire corporation to respond more rapidly to a changing global environment.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-05 – 06-05
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Designing Structure to Fit Global Strategy
KEYWORDS:   Bloom’s: Remember

 

61. What are global teams? What are the two types of global teams?

ANSWER:   Global teams, also called transnational teams, are cross-border work groups made up of multiskilled, multinational members whose activities span multiple countries. Typically, teams are of two types: intercultural teams, whose members come from different countries and meet face to face, and virtual global teams, whose members remain in separate locations around the world and conduct their work electronically.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Remember

 

62. Discuss in detail the role of country managers.

ANSWER:   A country manager for an international firm has to coordinate all the various functional activities located within the country to meet the problems, opportunities, needs, and trends in the local market, enabling the organization to achieve multinational flexibility and rapid response. The country manager in Venezuela for a global consumer products firm such as Colgate-Palmolive would coordinate everything that goes on in that country, from manufacturing to HR to marketing, to ensure that activities meet the language, cultural, government, and legal requirements of Venezuela. The country manager in Ireland or Canada would do the same for those countries. Country managers also help with the transfer of ideas, trends, products, and technologies that arise in one country and might have significance on a broader scale.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

63. Discuss the benefits of inter-unit coordination.

ANSWER:   Benefits that result from inter-unit collaboration include the following:
Cost savings—Collaboration can produce real, measurable results in the way of cost savings from the sharing of best practices across global divisions.
Better decision making—By sharing information and advice across divisions, managers can make better business decisions that support their own unit as well as the organization as a whole.
Greater revenues—By sharing expertise and products among various divisions, organizations can reap increased revenues.
Increased innovation—The sharing of ideas and technological innovations across units stimulates creativity and the development of new products and services.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-06 – 06-06
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   Additional Global Coordination Mechanisms
KEYWORDS:   Bloom’s: Understand

 

64. Discuss the challenges addressed by the transnational model of organization.

ANSWER:   The units of a transnational organization network are far-flung. Achieving coordination, a sense of participation and involvement by subsidiaries, and a sharing of information, knowledge, new technology, and customers is a tremendous challenge. In addition, some subsidiaries become so large that they no longer fit a narrow strategic role defined by headquarters. While being part of a larger organization, individual units need some autonomy for themselves and the ability to have an impact on other parts of the organization. The transnational model addresses these challenges by creating an integrated network of individual operations that are linked together to achieve the multidimensional goals of the overall organization.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

65. List the characteristics that distinguish the transnational organization from other global organization forms such as the matrix.

ANSWER:   The following characteristics distinguish the transnational organization from other global organization forms such as the matrix:
1. Assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships.
2. Structures are flexible and ever-changing. The transnational operates on a principle of flexible centralization.
3. Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole.
4. Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style, rather than through formal structures and systems.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.06-07 – 06-07
NATIONAL STANDARDS:   United States – AACSB: Analytic
TOPICS:   The Transnational Model of Organization
KEYWORDS:   Bloom’s: Understand

 

 

Additional information

Add Review

Your email address will not be published. Required fields are marked *