Question 1

Which of the following is suggested by the research on monitoring systems by Ueno and Sekaran?

Accepted Answer

A)   U.S. firms use long-term evaluations to a greater extent than Japanese firms.
B)   Japanese firms build slack into budget calculations more often than U.S. firms do.
C)   U.S. firms use communication and coordination processes more extensively than Japanese firms.
D)   Japanese managers are more likely to use formal communication procedures than U.S. managers.

Question 2

Which of the following terms refers to the control of foreign operations through the use of reports, budgets, and financial controls?

Accepted Answer

A)   direct controls
B)   internal analysis
C)   indirect controls
D)   resource management

Question 3

With a transnational strategy, the need for complex integrating mechanisms is ________, and in an international strategy, the need is ________.

Accepted Answer

A)   very high; very low
B)   very low; high
C)   very high; medium
D)   medium; very high

Question 4

Can a firm's organizational structure become too complicated? Why or why not?

Accepted Answer

There seems to be a contingency relation...

Question 5

Which of the following structures represents the most common way that small firms enter the global market?

Accepted Answer

A)   domestic structure plus export department
B)   domestic structure plus foreign subsidiary
C)   international division
D)   matrix structure

Question 6

All of the following are characteristics of a firm with transnational capability EXCEPT ________.

Accepted Answer

A)   local flexibility
B)   global integration
C)   centralized vertical structure
D)   ability to manage across borders

Question 7

In which of the following are a firm's foreign operations integrated into the activities and responsibilities of each department to gain functional specialization and economies of scale?

Accepted Answer

A)   matrix structure
B)   international division
C)   global divisional structure
D)   global functional structure

Question 8

Contingency theory proposes that the best organizational structure is that which ________.

Accepted Answer

A)   enables a firm to globalize quickly
B)   leads to a high-efficiency work system
C)   provides for balanced control of subsidiaries
D)   allows the firm to carry out its strategic goals

Question 9

Which of the following is a major structural changes occurring within many emerging market companies, such as Lenovo and Mittal Steel?

Accepted Answer

A)   expanding family ownerships
B)   establishing foreign franchises
C)   simplifying traditional hierarchies
D)   decreasing the powers of subsidiaries

Question 10

Which of the following forms of organization is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?

Accepted Answer

A)   global functional structure
B)   global product structure
C)   global geographic structure
D)   global market structure

Question 11

Which of the following is a financial variable in MNC reports that complicates financial statements and performance evaluations?

Accepted Answer

A)   global structures
B)   inflation levels
C)   sales quotas
D)   political systems

Question 12

What is the most common form of organizing foreign operations?

Accepted Answer

A)   global functional structure
B)   global geographic structure
C)   global product structure
D)   matrix structure

Question 13

A firm that uses an international division structure may experience conflict among all of its divisions because ________.

Accepted Answer

A)   the structure type is not very efficient
B)   the international division fails to respond to cultural differences
C)   more resources tend to be provided to the international division
D)   fewer resources tend to be provided to the international division

Question 14

Marketing-oriented companies like Nestle and Unilever are more likely to use a ________ structure because products can be adapted to local requirements.

Accepted Answer

A)   global functional
B)   global geographic
C)   matrix
D)   domestic

Question 15

An international division with an integrated global structure can be organized along all of the following lines EXCEPT ________.

Accepted Answer

A)   functional lines
B)   product lines
C)   geographic lines
D)   cultural lines

Question 16

Describe the organizational structure and characteristics of transnational corporations.

Accepted Answer

A transnational corporation has the abil...

Question 17

Which of the following organizational structures is typical of most transnational companies?

Accepted Answer

A)   matrix structure
B)   international division
C)   global product structure
D)   global functional structure

Question 18

Which of the following is NOT one of proctor & Gamble's Four Pillars?

Accepted Answer

A)   Global Business Units
B)   Global Business Services
C)   International Technology Units
D)   Market Development Organizations

Question 19

Which of the following is the LEAST relevant variable to consider in organizational design?

Accepted Answer

A)   corporate strategy
B)   business size
C)   labor market
D)   business practices

Question 20

What led Samsung to reorganize in 2009?

Accepted Answer

A)   failed joint ventures
B)   foreign trade restrictions
C)   global economic conditions
D)   emerging market competition

Exam 8: Organization Structure and Control Systems

Which of the following forms of organization is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?

Correct AnswerverifiedShow Answer

A firm that uses an international division structure may experience conflict among all of its divisions because ________.

Correct AnswerverifiedShow Answer

In which of the following are a firm's foreign operations integrated into the activities and responsibilities of each department to gain functional specialization and economies of scale?

Correct AnswerverifiedShow Answer

Describe the organizational structure and characteristics of transnational corporations.

Correct AnswerverifiedA transnational corporation has the abil...View AnswerShow Answer

Can a firm's organizational structure become too complicated? Why or why not?

Correct AnswerverifiedThere seems to be a contingency relation...View AnswerShow Answer

All of the following are characteristics of a firm with transnational capability EXCEPT ________.

Correct AnswerverifiedShow Answer

Contingency theory proposes that the best organizational structure is that which ________.

Correct AnswerverifiedShow Answer

What led Samsung to reorganize in 2009?

Correct AnswerverifiedShow Answer

Which of the following is the LEAST relevant variable to consider in organizational design?

Correct AnswerverifiedShow Answer

With a transnational strategy, the need for complex integrating mechanisms is ________, and in an international strategy, the need is ________.

Correct AnswerverifiedShow Answer

Which of the following is a financial variable in MNC reports that complicates financial statements and performance evaluations?

Correct AnswerverifiedShow Answer

Which of the following is suggested by the research on monitoring systems by Ueno and Sekaran?

Correct AnswerverifiedShow Answer

What is the most common form of organizing foreign operations?

Correct AnswerverifiedShow Answer

Which of the following structures represents the most common way that small firms enter the global market?

Correct AnswerverifiedShow Answer

Which of the following is a major structural changes occurring within many emerging market companies, such as Lenovo and Mittal Steel?

Correct AnswerverifiedShow Answer

Marketing-oriented companies like Nestle and Unilever are more likely to use a ________ structure because products can be adapted to local requirements.

Correct AnswerverifiedShow Answer

An international division with an integrated global structure can be organized along all of the following lines EXCEPT ________.

Correct AnswerverifiedShow Answer

Which of the following terms refers to the control of foreign operations through the use of reports, budgets, and financial controls?

Correct AnswerverifiedShow Answer

Which of the following organizational structures is typical of most transnational companies?

Correct AnswerverifiedShow Answer

Which of the following is NOT one of proctor & Gamble's Four Pillars?

Correct AnswerverifiedShow Answer

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A transnational corporation has the abil...
View Answer

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There seems to be a contingency relation...
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With a transnational strategy, the need for complex integrating mechanisms is , and in an international strategy, the need is .

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