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Installing a matrix structure is the most effective way to transition from an organization based on multiple regional divisions to one able to manage both geographic and product diversity.

A) True
B) False

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Historically,many large Japanese companies used a centralized hub configuration.The 2011 earthquake in Japan resulted in a significant cost to Canon by inhibiting its production process.In response,the CEO of Canon announced in the 2011 annual report that they will have three headquarters,instead of one.These will be based in each of the US,Europe,and Japan.What are the challenges that the company will face during this transition?

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Canon will face some challenges as it tr...

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Briefly discuss the development and diffusion of knowledge in the decentralized federation,the coordinated federation and the centralized hub,respectively.

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Decentralized federation:
-national subs...

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Which of the following is not a core characteristic of the decentralized federation structure?


A) Most key assets and resources are decentralized.
B) Subsidiaries are highly autonomous.
C) Corporate management regards subsidiaries as largely independent national operations.
D) Reporting and oversight conflicts prevail.

E) B) and C)
F) C) and D)

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A transnational organization integrates its dispersed assets,resources,and capabilities through flexible processes involving centralization,formalization and rationalization.

A) True
B) False

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Describe why the formal structure is not able to capture and manage the complexity of the strategic tasks facing most MNEs?

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First,the emphasis on making either/or c...

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Name and briefly describe three organizational characteristics that distinguish the transnational organization from multinational,international or global organizations.

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In a transnational organization,
1.decis...

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Which of the following strategy-structure combinations cannot be paired?


A) Coordinated federation and multinational strategy.
B) Decentralized federation and international strategy.
C) Centralized hub and global strategy.
D) Integrated network and transnational strategy.

E) None of the above
F) A) and B)

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The implied distribution of roles and responsibilities requires the development of rather sophisticated and subtle decision-making machinery based on three interdependent management processes.Discuss the three interdependent management process.

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The first is a focused and constrained escalation process that allows top management to intervene directly in key decision content.This carefully managed form of centralization may be appropriate for major resource allocation commitments,for example.The second is a process in which management structures individual roles and administrative systems to influence specific decisions.This formalization process is typically used for decisions involving repetitive or routine activities such as setting transfer prices.The third is a self-regulatory capability in which top management's role is to establish a broad culture and set of relationships that provide a supportive organizational context for delegated decisions.This is a sophisticated management process driven by socialization and is most useful in decisions that require the effective use of the large amounts of information,knowledge,and expertise that resides in the dispersed activities of the transnational organization.

Which of the following is not a characteristic of the companies with centralized hub structure?


A) Most of the key assets and resources are concentrated in the home country.
B) Tight strategic and operational controls are maintained over the subsidiaries.
C) Most of the manufacturing and product development is executed by the subsidiaries.
D) Corporate management regards its subsidiaries as delivery pipelines to the global market.

E) A) and B)
F) A) and C)

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Companies that pursue a multinational strategy are inclined to adopt the decentralized federation organizational model.

A) True
B) False

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Which of the following describes the preferred sequencing of changes associated with implementing the typically more effective emerging change process model?


A) Change in individual attitudes and mentalities; then, change in interpersonal relationships and processes; and finally, change in the formal structure and responsibilities
B) Change in the formal structure and responsibilities; then, change in interpersonal relationships and processes; and finally, change in individual attitudes and mentalities
C) Change in interpersonal relationships and processes; then, change in the formal structure and responsibilities; and finally, change in individual attitudes and mentalities.
D) Change in individual attitudes and mentalities; then, change in the formal structure and responsibilities; and finally, change in interpersonal relationships and processes

E) A) and B)
F) B) and D)

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The key strategic capability associated with the coordinated federation organizational model is global-scale efficiency.

A) True
B) False

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Which of the following strategic approach and strategic capabilities cannot be paired?


A) Transnational strategy and national responsiveness
B) Transnational strategy and learning
C) Transnational strategy and global efficiency
D) Global strategy and national responsiveness

E) C) and D)
F) None of the above

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D

The CEO of SemChem Co.was considering how to reorganize the company following the management team's decision to create four new product divisions,while maintaining SemChem's existing three regional divisions.A consultant has recommended a solution that centers on driving the change by restructuring the organization around a matrix.Briefly describe the matrix structure and discuss some practical difficulties associated with this organizational structure?

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The company is currently using a divisio...

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Which of the following is not characteristic of companies with a transnational strategy?


A) Multiple diverse perspectives are developed and legitimized.
B) Physical assets and management capabilities are internationally distributed, yet interdependent.
C) Integrative processes are flexible and robust.
D) Knowledge is developed centrally and adapted locally.

E) B) and C)
F) A) and B)

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The transnational organization recognizes that there is a single static management model which it can apply universally.

A) True
B) False

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In a transnational organization,the asset and capability configuration can be described as dispersed,specialized and interdependent.

A) True
B) False

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In a transnational organization,knowledge is developed at the headquarters and transferred to foreign units.

A) True
B) False

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In the transnational organization,capable managers situated in the national subsidiaries act as the primary source for sensing and analysing worldwide opportunities and threats.

A) True
B) False

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True

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