International Management Test Review 8

Your Results for: "Chapter Quiz"
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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
Location on
Site:
Chapter 8 > Chapter Quiz
Date/Time
Submitted:
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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