Question 1

The implied lack of coordination between domestic operations and foreign operations,which are isolated from each other in separate parts of the structural hierarchy,is a problem encountered with a(n) :

Accepted Answer

A)  global matrix structure.
B)  international division structure.
C)  worldwide product division structure.
D)  worldwide area structure.E) A) and C)
F) C) and D)

Question 2

The worldwide product division structure facilitates local responsiveness.

Accepted Answer

A) True 
 B)False

Question 3

In a worldwide area structure,each area tends to be a self-contained,largely autonomous entity with its own set of value creation activities.

Accepted Answer

A) True 
 B)False

Question 4

What are the two conditions with regard to firm architecture and strategy that are necessary for a firm to succeed?

Accepted Answer

The fit between strategy and firm archit...

Question 5

The need for coordination between subunits is lowest in firms pursuing a(n) :

Accepted Answer

A)  localization strategy.
B)  international strategy.
C)  global strategy.
D)  transnational strategy.E) None of the above
F) A) and B)

Question 6

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 strategy.E) B) and C)
F) A) and B)

Question 7

Discuss the relationship between a firm's control systems and a firm's incentive system.Why is this relationship important?

Accepted Answer

The relationships between a firm's contr...

Question 8

A company using _____ achieves control by comparing actual performance against targets and intervening selectively to take corrective action.

Accepted Answer

A)  personal control
B)  output control
C)  bureaucratic control
D)  cultural controlE) None of the above
F) A) and C)

Question 9

In the classic global matrix structure,horizontal differentiation proceeds along two dimensions.These dimensions are:

Accepted Answer

A)  hierarchy and overall strategy.
B)  target returns and sales potential.
C)  marketing strategy and sales potential.
D)  product division and geographic area.E) A) and C)
F) A) and B)

Question 10

By centralizing decision making,a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Accepted Answer

A) True 
 B)False

Question 11

Firms traditionally have tried to achieve coordination by adopting:

Accepted Answer

A)  informal integrating mechanisms.
B)  formal integrating mechanisms.
C)  vertical differentiation.
D)  horizontal differentiation.E) A) and B)
F) All of the above

Question 12

What are the three challenges related to strategy and structure that firms must accomplish if they are to achieve superior profitability?

Accepted Answer

Superior enterprise profitability requir...

Question 13

Behavioral scientists have long argued that people are willing to give more to their jobs when they have a greater degree of individual freedom and control over their work.This suggests that:

Accepted Answer

A)  motivational research favors decentralization.
B)  centralization can facilitate coordination.
C)  centralization can ensure that decisions are consistent with organizational objectives.
D)  decentralization permits total flexibility with no control.E) None of the above
F) B) and C)

Question 14

What is horizontal differentiation?

Accepted Answer

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

Question 15

Control through a system of rules and procedures that directs the actions of subunits is:

Accepted Answer

A)  personal control.
B)  bureaucratic control.
C)  output control.
D)  cultural control.E) C) and D)
F) B) and D)

Question 16

Due to the high level of interdependence,the costs of controlling _____ firms are higher than the costs of controlling firms that pursue other strategies.

Accepted Answer

A)  localized
B)  transnational
C)  international
D)  globalE) A) and B)
F) B) and C)

Question 17

These refer to abstract ideas about what a group believes to be good,right,and desirable.

Accepted Answer

A)  Values
B)  Norms
C)  Thoughts
D)  IdeasE) A) and D)
F) A) and C)

Question 18

Discuss the type of firm that uses the worldwide product division structure.What are the main strengths and weaknesses with this type of structure?

Accepted Answer

Firms that adopt the worldwide product d...

Question 19

According to the text,superior enterprise profitability requires all of the following conditions to be fulfilled except:

Accepted Answer

A)  the different elements of a firm's organizational architecture must be internally consistent.
B)  the organizational architecture must match the strategy of the firm.
C)  the strategy and architecture of the firm must not only be consistent with each other,but also consistent with the competitive environment of the firm.
D)  the firm's formal organizational structure must revolve around the indigenous population in each subunit.E) A) and C)
F) A) and B)

Question 20

Discuss the location of decision-making in a firm that is following a transnational strategy.

Accepted Answer

Decision-making in a firm pursuing a tra...

Exam 13: The Organization of International Business

Behavioral scientists have long argued that people are willing to give more to their jobs when they have a greater degree of individual freedom and control over their work.This suggests that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The implied lack of coordination between domestic operations and foreign operations,which are isolated from each other in separate parts of the structural hierarchy,is a problem encountered with a(n) :

Correct AnswerverifiedShow Answer

Firms traditionally have tried to achieve coordination by adopting:

Correct AnswerverifiedShow Answer

In a worldwide area structure,each area tends to be a self-contained,largely autonomous entity with its own set of value creation activities.

Correct AnswerverifiedShow Answer

What are the two conditions with regard to firm architecture and strategy that are necessary for a firm to succeed?

Correct AnswerverifiedThe fit between strategy and firm archit...View AnswerShow Answer

Due to the high level of interdependence,the costs of controlling _____ firms are higher than the costs of controlling firms that pursue other strategies.

Correct AnswerverifiedShow Answer

The worldwide product division structure facilitates local responsiveness.

Correct AnswerverifiedShow Answer

By centralizing decision making,a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Correct AnswerverifiedShow Answer

In the classic global matrix structure,horizontal differentiation proceeds along two dimensions.These dimensions are:

Correct AnswerverifiedShow Answer

Control through a system of rules and procedures that directs the actions of subunits is:

Correct AnswerverifiedShow Answer

The need for coordination between subunits is lowest in firms pursuing a(n) :

Correct AnswerverifiedShow Answer

Discuss the location of decision-making in a firm that is following a transnational strategy.

Correct AnswerverifiedDecision-making in a firm pursuing a tra...View AnswerShow Answer

Discuss the relationship between a firm's control systems and a firm's incentive system.Why is this relationship important?

Correct AnswerverifiedThe relationships between a firm's contr...View AnswerShow Answer

What is horizontal differentiation?

Correct AnswerverifiedShow Answer

According to the text,superior enterprise profitability requires all of the following conditions to be fulfilled except:

Correct AnswerverifiedShow Answer

A company using _____ achieves control by comparing actual performance against targets and intervening selectively to take corrective action.

Correct AnswerverifiedShow Answer

What are the three challenges related to strategy and structure that firms must accomplish if they are to achieve superior profitability?

Correct AnswerverifiedSuperior enterprise profitability requir...View AnswerShow Answer

These refer to abstract ideas about what a group believes to be good,right,and desirable.

Correct AnswerverifiedShow Answer

Discuss the type of firm that uses the worldwide product division structure.What are the main strengths and weaknesses with this type of structure?

Correct AnswerverifiedFirms that adopt the worldwide product d...View AnswerShow Answer

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The fit between strategy and firm archit...
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Decision-making in a firm pursuing a tra...
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The relationships between a firm's contr...
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Superior enterprise profitability requir...
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Firms that adopt the worldwide product d...
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