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 1 of 7 5/19/2013 11:50 PM 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. Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 2 of 7 5/19/2013 11:50 PM 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. Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 3 of 7 5/19/2013 11:50 PM 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 Correct Answer: False 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 Correct Answer: False 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 Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 4 of 7 5/19/2013 11:50 PM 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 Correct Answer: False 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 Correct Answer: False 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 Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 5 of 7 5/19/2013 11:50 PM 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? Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 6 of 7 5/19/2013 11:50 PM 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. E-mail Your Results My name is (first last): E-mail my results to: E-mail address: Send as: Me Instructor TA Other Help Copyright 1995 - 2013 Pearson Education . All rights reserved. Pearson Prentice Hall is an imprint of Pearson . Legal Notice | Privacy Policy | Permissions Your Results for "Chapter Quiz" http://wps.prenhall.com/wps/grader 7 of 7 5/19/2013 11:50 PM