Question 1

Organizational structure refers to the totality of a firm's organization.

Accepted Answer

A) True 
 B)False

Question 2

Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control.

Accepted Answer

A)   vertical differentiation
B)   cultural division
C)   horizontal differentiation
D)   performance ambiguityE) B) and C)
F) C) and D)

Question 3

Explain organizational structure.

Accepted Answer

A firm's organizational structure refers...

Question 4

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n)  _____.

Accepted Answer

A)   localization strategy
B)   international strategy
C)   transnational strategy
D)   global strategyE) B) and C)
F) A) and C)

Question 5

A firm that needs greater flexibility should choose _____ for its decision-making.

Accepted Answer

A)   horizontal differentiation
B)   decentralization
C)   localization strategy
D)   control systemsE) B) and C)
F) A) and B)

Question 6

Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?

Accepted Answer

When firms initially expand abroad, they...

Question 7

Which of the following statements is true about a product divisional structure?

Accepted Answer

A)   In a product divisional structure, the responsibility for the financial control of the firm is typically decentralized.
B)   A product divisional structure tends to be organized on geography.
C)   In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions.
D)   In a product divisional structure, the responsibility for operating decisions is typically centralized.E) A) and B)
F) A) and C)

Question 8

In firms pursuing a(n)  _____, some operating decisions are relatively centralized, while others are relatively decentralized.

Accepted Answer

A)   global standardization strategy
B)   transnational strategy
C)   localization strategy
D)   international strategyE) All of the above
F) B) and C)

Question 9

A firm pursuing a(n)  _____ will have a strong incentive to decentralize decision-making.

Accepted Answer

A)   localization strategy
B)   transnational strategy
C)   global standardization strategy
D)   international strategyE) C) and D)
F) A) and D)

Question 10

Which of the following is more difficult for a leader?

Accepted Answer

A)   To change an established organizational culture
B)   To import an organizational culture
C)   To create an organizational culture from scratch in a new venture
D)   To export an organizational cultureE) A) and B)
F) A) and C)

Question 11

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

Accepted Answer

A) True 
 B)False

Question 12

Integration mechanisms are the:

Accepted Answer

A)   formal division of the organization into subunits.
B)   mechanisms that enable each subunit to operate independently.
C)   mechanisms for coordinating subunits.
D)   location of decision making responsibilities within a structure.E) B) and C)
F) A) and D)

Question 13

_____ control is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

Accepted Answer

A)   Personal
B)   Output
C)   Bureaucratic
D)   CulturalE) All of the above
F) A) and C)

Question 14

What type of control system uses a system of rules and procedures that directs the actions of subunits?

Accepted Answer

A)   Personal controls
B)   Bureaucratic controls
C)   Cultural controls
D)   Output controlsE) A) and D)
F) B) and C)

Question 15

Regardless of a firm's domestic structure, its international division tends to be:

Accepted Answer

A)   organized on economy.
B)   decentralized.
C)   organized on geography.
D)   centralized.E) A) and D)
F) A) and C)

Question 16

What are the basic principles for successful organizational change?

Accepted Answer

There are three basic principles for org...

Question 17

By centralizing decision making, a firm:

Accepted Answer

A)   allows managers to respond to environmental changes more quickly.
B)   runs the risk of not being able to respond to environmental changes quickly.
C)   can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.
D)   often has issues with duplication of activities that occurs when similar activities are carried on by various subunits within the organization.E) A) and B)
F) None of the above

Question 18

In a worldwide product divisional structure, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities.

Accepted Answer

A) True 
 B)False

Question 19

Which control system is most widely used by small firms?

Accepted Answer

A)   Personal
B)   Output
C)   Bureaucratic
D)   CulturalE) C) and D)
F) None of the above

Question 20

Firms pursuing a transnational strategy:

Accepted Answer

A)   have a low need for coordination.
B)   require very few integrating mechanisms.
C)   have a very high need for cultural controls.
D)   operate with a worldwide product division structure.E) A) and C)
F) A) and D)

Exam 14: The Organization of International Business

A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making.

Correct AnswerverifiedShow Answer

_____ control is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

Correct AnswerverifiedShow Answer

Regardless of a firm's domestic structure, its international division tends to be:

Correct AnswerverifiedShow Answer

Which of the following is more difficult for a leader?

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Firms pursuing a transnational strategy:

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By centralizing decision making, a firm:

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Integration mechanisms are the:

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A firm that needs greater flexibility should choose _____ for its decision-making.

Correct AnswerverifiedShow Answer

In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized.

Correct AnswerverifiedShow Answer

Which of the following statements is true about a product divisional structure?

Correct AnswerverifiedShow Answer

Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control.

Correct AnswerverifiedShow Answer

Explain organizational structure.

Correct AnswerverifiedA firm's organizational structure refers...View AnswerShow Answer

What are the basic principles for successful organizational change?

Correct AnswerverifiedThere are three basic principles for org...View AnswerShow Answer

Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?

Correct AnswerverifiedWhen firms initially expand abroad, they...View AnswerShow Answer

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____.

Correct AnswerverifiedShow Answer

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

Correct AnswerverifiedShow Answer

Which control system is most widely used by small firms?

Correct AnswerverifiedShow Answer

In a worldwide product divisional structure, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities.

Correct AnswerverifiedShow Answer

What type of control system uses a system of rules and procedures that directs the actions of subunits?

Correct AnswerverifiedShow Answer

Organizational structure refers to the totality of a firm's organization.

Correct AnswerverifiedShow Answer

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A firm's organizational structure refers...
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There are three basic principles for org...
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When firms initially expand abroad, they...
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