Question 1

A company's international operating environment,both currently and as it is expected to be in the future,is the primary determinant of its organizational structure.

Accepted Answer

A) True 
 B)False

Question 2

Organizational structure

Accepted Answer

A)  Refers to the way that an organization formally arranges its various domestic and international units and activities,and the relationships among these organizational components.
B)  Helps to determine where formal power and authority will be located within the organization.
C)  Is primarily created and evolved by senior management.
D)  Refers to ways an organization arranges its various domestic and international units and activities,and the relationships among these.It helps determine where formal power will be located and is created and evolved by senior management.
E)  Helps determine direct investment plans for the entire fiscal within the organization. Organizational structure refers to the way an organization formally arranges its various domestic and international units and activities,and the relationships among these.It also helps determine where formal power and authority will be located and is primarily created and evolved by senior management.

Question 3

Regarding the structure of international companies:

Accepted Answer

A)  Managers have to consider the nature of their company's international operating environment,both currently and how it is expected to change in the future.
B)  Managers have to consider the nature of their competitors' international strategies,both currently and how they are expected to change in the future.
C)  Gains from increased specialization of labor may at times be nullified by the increased cost of coordination.
D)  Gains from increased specialization of labor may at times be doubled by the increased cost of coordination.
E)  Managers have to consider the nature of their company's international operating environment,both current and its expected change in future.They also should note that gains from increased specialization of labor may at times be nullified by the increased cost of coordination.

Question 4

As their overseas operations have increased in importance,companies have felt the need to:

Accepted Answer

A)  eliminate the international division.
B)  establish worldwide organizations based on product,function,region,or customer classes at the top level.
C)  lower production costs by setting up in-bond plants.
D)  to eliminate the international division and establish worldwide organizations based on product,function,region,or customer classes at the top level.
E)  increase production costs by setting up in-bond plants.

Question 5

Organizational change refers to the way that an organization formally arranges its various domestic and international units and activities,and the relationships among these various organizational components.

Accepted Answer

A) True 
 B)False

Question 6

The rapidly changing business environment caused by increased global competition,customer preference for custom-made rather than mass-produced products,and faster technological change is pressuring companies to make greater use of global product structures.

Accepted Answer

A) True 
 B)False

Question 7

Disadvantages of the regionalized organization structure include:

Accepted Answer

A)  the increased complexity of directing worldwide operations.
B)  its inappropriateness for use in global companies.
C)  its duplication of area and product specialists.
D)  each region must have its own product and functional specialists.
E)  the increased complexity of directing local operations.

Question 8

Subsidiary management morale is one element in determining where decisions would be made.

Accepted Answer

A) True 
 B)False

Question 9

All the reasons for making decisions at IC headquarters,at 100 percent owned subsidiary headquarters,or cooperatively do not apply in joint venture situations.

Accepted Answer

A) True 
 B)False

Question 10

As the 21stCentury evolves,it is expected that managers will make greater use of the dynamic network structure to integrate the smaller units into an operation better coordinated by a large central headquarters organization.

Accepted Answer

A) True 
 B)False

Question 11

A structure organized by more than one dimension at the top level is a matrix organization.

Accepted Answer

A) True 
 B)False

Question 12

The horizontal organization has been characterized as anti-organization because its designers try to remove the constraints imposed by the conventional organizational structure.

Accepted Answer

A) True 
 B)False

Question 13

The international division is a division in the organization that is responsible for all non-home country activities and reports to the domestic division.

Accepted Answer

A) True 
 B)False

Question 14

The increasing pace of change and intensity of competition in many markets of the world,as well as continued differences across many markets,are causing even large experienced companies to delegate at least some decision-making authority to subsidiary managers.

Accepted Answer

A) True 
 B)False

Question 15

The primary dimensions that need to be considered when designing the structure of an international company are:

Accepted Answer

A)  product and technical expertise,geographic expertise,and functional expertise.
B)  product and technical expertise,customer expertise,and functional expertise.
C)  geographical expertise,functional expertise,and customer expertise.
D)  product and technical expertise,geographic expertise,customer expertise,and functional expertise.
E)  product and technical expertise,geographic expertise,customer expertise,and social expertise.

Question 16

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 very low integrated product mix.

Question 17

Problems with the matrix structure include:

Accepted Answer

A)  two or more managers must agree on decisions,which can lead to slow decision making.
B)  special divisions often must be established to serve heterogeneous customer segments.
C)  global branding and production coordination are hindered.
D)  local branding and production coordination are hindered.
E)  special divisions often must be established to serve homogenous customer segments.

Question 18

For controls to be effective,all operating units of an IC must provide headquarters with timely,accurate and complete reports,including those dealing with financial,technological,market opportunity,and political and economic information.

Accepted Answer

A) True 
 B)False

Question 19

Changes in an international company's strategy may require changes in the organization's design,but not the reverse.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 11: Organizational Design and Control

The primary dimensions that need to be considered when designing the structure of an international company are:

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A structure organized by more than one dimension at the top level is a matrix organization.

Correct AnswerverifiedShow Answer

As the 21stCentury evolves,it is expected that managers will make greater use of the dynamic network structure to integrate the smaller units into an operation better coordinated by a large central headquarters organization.

Correct AnswerverifiedShow Answer

Changes in an international company's strategy may require changes in the organization's design,but not the reverse.

Correct AnswerverifiedShow Answer

Problems with the matrix structure include:

Correct AnswerverifiedShow Answer

A company's international operating environment,both currently and as it is expected to be in the future,is the primary determinant of its organizational structure.

Correct AnswerverifiedShow Answer

Disadvantages of the regionalized organization structure include:

Correct AnswerverifiedShow Answer

Regarding the structure of international companies:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The international division is a division in the organization that is responsible for all non-home country activities and reports to the domestic division.

Correct AnswerverifiedShow Answer

All the reasons for making decisions at IC headquarters,at 100 percent owned subsidiary headquarters,or cooperatively do not apply in joint venture situations.

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Organizational structure

Correct AnswerverifiedShow Answer

Organizational change refers to the way that an organization formally arranges its various domestic and international units and activities,and the relationships among these various organizational components.

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

The rapidly changing business environment caused by increased global competition,customer preference for custom-made rather than mass-produced products,and faster technological change is pressuring companies to make greater use of global product structures.

Correct AnswerverifiedShow Answer

As their overseas operations have increased in importance,companies have felt the need to:

Correct AnswerverifiedShow Answer

For controls to be effective,all operating units of an IC must provide headquarters with timely,accurate and complete reports,including those dealing with financial,technological,market opportunity,and political and economic information.

Correct AnswerverifiedShow Answer

The increasing pace of change and intensity of competition in many markets of the world,as well as continued differences across many markets,are causing even large experienced companies to delegate at least some decision-making authority to subsidiary managers.

Correct AnswerverifiedShow Answer

The horizontal organization has been characterized as anti-organization because its designers try to remove the constraints imposed by the conventional organizational structure.

Correct AnswerverifiedShow Answer

Subsidiary management morale is one element in determining where decisions would be made.

Correct AnswerverifiedShow Answer

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As the 21^stCentury evolves,it is expected that managers will make greater use of the dynamic network structure to integrate the smaller units into an operation better coordinated by a large central headquarters organization.

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