Question 1

Most strategic business units are organized based on __________________.

Accepted Answer

A)   geographic region
B)   functional area
C)   customer class
D)   product line
E)   country level

Question 2

Managers have to consider the nature of their company's international ______ environment and ______,both currently and how they might look in the future,when deciding on the IC's structure.

Accepted Answer

operating ; strategy
Explanation: Manage...

Question 3

Production coordination across regions presents challenges for companies with geographic region structures,so ICs often place specialized ______ managers on the headquarters staff to provide input to corporate decisions concerning products.

Accepted Answer

product
Explanation: Production coordina...

Question 4

An organization in which top-level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is called a hybrid organization.

Accepted Answer

A) True 
 B)False

Question 5

According to the text,which of the following is not typically associated with strategic business units?

Accepted Answer

A)   Clearly defined market
B)   Specialized production technology
C)   Specific competitors
D)   Size appropriate for control by a single nation
E)   Self-contained

Question 6

Reengineering is often accompanied by a significant ______ in middle management staff,restructuring of work processes across functional departments,and improvement in the speed and quality of strategy execution.

Accepted Answer

reduction
Explanation: Reengineering is ...

Question 7

The two main issues management must consider in designing an international company's structure are (1)______ to most effectively take advantage of efficiencies gained from specialization of labor and (2)______ the resulting departments' activities to meet the firm's overall objectives.

Accepted Answer

departmentalizing ; coordinating
Explana...

Question 8

A structure organized by more than one dimension at the top level is known as a

Accepted Answer

A)   hybrid organization.
B)   matrix organization.
C)   matrix overlay.
D)   network corporation.
E)   virtual corporation.

Question 9

The matrix overlay organizational form attempts to eliminate some of the problems of the matrix organization.

Accepted Answer

A) True 
 B)False

Question 10

The international structural stages model suggests that a typical evolutional path for an international company's structure would be

Accepted Answer

A)   from international division to geographical area division to worldwide product division.
B)   from international division to worldwide product division to geographical area division.
C)   from geographical area division to worldwide product division to global matrix.
D)   from functional division to horizontal company to virtual corporation.
E)   from international division to worldwide product division to global matrix.

Question 11

The common characteristic of multinationals that are organized by function at the upper level is a narrow

Accepted Answer

A)   and highly integrated product mix.
B)   and highly integrated customer list.
C)   variation of prices in the product mix.
D)   research and development effort.
E)   and highly concentrated regional focus.

Question 12

Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.

Accepted Answer

A) True 
 B)False

Question 13

An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization is known as a(n)

Accepted Answer

A)   modular network.
B)   horizontal corporation.
C)   strategic business unit.
D)   virtual corporation.
E)   global corporation.

Question 14

Headquarters is more likely to rely on subsidiary management if:

Accepted Answer

A)   subsidiary managers are from another country.
B)   conditions in the host country are very similar to those in the home country.
C)   the subsidiary is located far away from headquarters.
D)   the host country has similar institutions and politics to those in the home country.

Question 15

Regarding an IC's structures and systems

Accepted Answer

A)   management must avoid changing them over time, to avoid disrupting operations.
B)   they must be designed before a company can develop its strategy.
C)   they must be consistent with the organization's environmental context.
D)   they depend on the country in which the IC is headquartered.
E)   they must ensure that control is dispersed to subsidiaries to compete successfully across international markets.

Question 16

According to the text,when the IC headquarters decides which subsidiary would get to fill an order for a customer abroad,IC management would consider all of the following except:

Accepted Answer

A)   transportation costs.
B)   comparative tariff rates.
C)   size of the subsidiary.
D)   comparative order backlogs.
E)   governmental pressures.

Question 17

Organizations,like people,have ____________.In their youth,they are small,fast growing,and tend toward the entrepreneurial.However,as they age,they often become big,complex,and out of touch with their markets.

Accepted Answer

life cycles
Explanation: Organizations, ...

Question 18

According to the text,companies controlled by other companies,but less-than-majority owners may exercise control by a variety of means,both those involving stock ownership and those involving nonownership mechanisms,are known as:

Accepted Answer

A)   international companies.
B)   affiliates.
C)   virtual organizations.
D)   networked organizations.
E)   subsidiaries.

Question 19

According to the text,which of the following is not one of the developments that is encouraging managers to consider organizational designs such as reengineering,virtual corporations,and horizontal corporations?

Accepted Answer

A)   Faster technological change.
B)   Increased diversity of cultures and countries.
C)   A growing customer preference for custom-made rather than mass-produced products.
D)   Pressure to maintain alignment between the organization and its global and hypercompetitive environment.
E)   The rapidly changing business environment caused by increased global competition.

Question 20

The international division structure

Accepted Answer

A)   is usually adopted before a firm begins expanding into international markets.
B)   usually has the international division reporting to the domestic division.
C)   is only used during the early stages of internationalization; large multinationals change their structure to global, regional, or matrix structures.
D)   is the most inefficient of the structures.
E)   usually has the international division responsible for all overseas activity.

Exam 10: Organizational Design and Control

According to the text,which of the following is not typically associated with strategic business units?

Correct AnswerverifiedShow Answer

The international structural stages model suggests that a typical evolutional path for an international company's structure would be

Correct AnswerverifiedShow Answer

An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization is known as a(n)

Correct AnswerverifiedShow Answer

Headquarters is more likely to rely on subsidiary management if:

Correct AnswerverifiedShow Answer

Reengineering is often accompanied by a significant ______ in middle management staff,restructuring of work processes across functional departments,and improvement in the speed and quality of strategy execution.

Correct AnswerverifiedreductionExplanation: Reengineering is ...View AnswerShow Answer

The two main issues management must consider in designing an international company's structure are (1)______ to most effectively take advantage of efficiencies gained from specialization of labor and (2)______ the resulting departments' activities to meet the firm's overall objectives.

Correct Answerverifieddepartmentalizing ; coordinatingExplana...View AnswerShow Answer

Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.

Correct AnswerverifiedShow Answer

The matrix overlay organizational form attempts to eliminate some of the problems of the matrix organization.

Correct AnswerverifiedShow Answer

Organizations,like people,have ____________.In their youth,they are small,fast growing,and tend toward the entrepreneurial.However,as they age,they often become big,complex,and out of touch with their markets.

Correct Answerverifiedlife cyclesExplanation: Organizations, ...View AnswerShow Answer

The common characteristic of multinationals that are organized by function at the upper level is a narrow

Correct AnswerverifiedShow Answer

According to the text,which of the following is not one of the developments that is encouraging managers to consider organizational designs such as reengineering,virtual corporations,and horizontal corporations?

Correct AnswerverifiedShow Answer

A structure organized by more than one dimension at the top level is known as a

Correct AnswerverifiedShow Answer

Production coordination across regions presents challenges for companies with geographic region structures,so ICs often place specialized ______ managers on the headquarters staff to provide input to corporate decisions concerning products.

Correct AnswerverifiedproductExplanation: Production coordina...View AnswerShow Answer

According to the text,when the IC headquarters decides which subsidiary would get to fill an order for a customer abroad,IC management would consider all of the following except:

Correct AnswerverifiedShow Answer

Most strategic business units are organized based on __________________.

Correct AnswerverifiedShow Answer

According to the text,companies controlled by other companies,but less-than-majority owners may exercise control by a variety of means,both those involving stock ownership and those involving nonownership mechanisms,are known as:

Correct AnswerverifiedShow Answer

Managers have to consider the nature of their company's international ______ environment and ______,both currently and how they might look in the future,when deciding on the IC's structure.

Correct Answerverifiedoperating ; strategyExplanation: Manage...View AnswerShow Answer

Regarding an IC's structures and systems

Correct AnswerverifiedShow Answer

An organization in which top-level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is called a hybrid organization.

Correct AnswerverifiedShow Answer

The international division structure

Correct AnswerverifiedShow Answer

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reduction
Explanation: Reengineering is ...
View Answer

The two main issues management must consider in designing an international company's structure are (1) to most effectively take advantage of efficiencies gained from specialization of labor and (2) the resulting departments' activities to meet the firm's overall objectives.

Correct Answer
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departmentalizing ; coordinating
Explana...
View Answer

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life cycles
Explanation: Organizations, ...
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product
Explanation: Production coordina...
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Managers have to consider the nature of their company's international environment and ,both currently and how they might look in the future,when deciding on the IC's structure.

Correct Answer
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operating ; strategy
Explanation: Manage...
View Answer

Correct Answer
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Correct Answer
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