Question 1

Which of the following is true of a strong corporate culture?

Accepted Answer

A)   Almost all managers share a relatively consistent set of values and norms that have a clear impact on the way work is performed.
B)   A strong culture leads to high performance.
C)   Outsiders see firms with a strong culture as being autocratic and inflexible.
D)   A strong culture is always a good culture.E) All of the above
F) A) and D)

Question 2

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n)  _____.

Accepted Answer

A)   control system
B)   process
C)   integrating mechanism
D)   incentiveE) C) and D)
F) A) and B)

Question 3

Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.

Accepted Answer

A) True 
 B)False

Question 4

The worldwide product division structure facilitates local responsiveness.

Accepted Answer

A) True 
 B)False

Question 5

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

Accepted Answer

A) True 
 B)False

Question 6

_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Accepted Answer

A)   Global learning
B)   Liaison roles
C)   Knowledge network
D)   Matrix StructuresE) A) and B)
F) A) and D)

Question 7

Which of the following is a problem that arises due to an international division structure?

Accepted Answer

A)   In an international division structure, a firm's international division tends to be organized on products.
B)   The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters.
C)   The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.
D)   The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions.E) B) and C)
F) All of the above

Question 8

Discuss the characteristics of a firm that is pursuing an international strategy.

Accepted Answer

Firms pursuing an international strategy...

Question 9

It is difficult to ascertain accountability in the global matrix structure.

Accepted Answer

A) True 
 B)False

Question 10

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 strategyE) C) and D)
F) A) and D)

Question 11

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Accepted Answer

A)   Cultural controls
B)   Control systems
C)   Output controls
D)   IncentivesE) None of the above
F) B) and C)

Question 12

In a _____ all roles are viewed as integrating roles.

Accepted Answer

A)   worldwide area structure
B)   process structure
C)   worldwide product division structure
D)   global matrix structureE) A) and B)
F) All of the above

Question 13

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

Accepted Answer

A)   integrating mechanism
B)   vertical differentiation
C)   knowledge network
D)   horizontal differentiationE) C) and D)
F) B) and D)

Question 14

Refreezing an organization should happen quickly.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an argument favoring centralization?

Accepted Answer

A)   It permits greater flexibility.
B)   Motivational research favors it.
C)   It can avoid the duplication of activities.
D)   It gives top management time to focus on critical issues by delegating routine issues to lower-level managers.E) A) and B)
F) A) and C)

Question 16

To unfreeze the established culture of an organization, the company:

Accepted Answer

A)   must take bold steps such as shaking up the management structure in order to implement change.
B)   is best served by taking incremental steps.
C)   should employ the existing structural organization to integrate changes.
D)   implement a rewards or incentive program.E) B) and C)
F) A) and D)

Question 17

Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms.

Accepted Answer

A) True 
 B)False

Question 18

A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Accepted Answer

A)   worldwide product division structure
B)   global matrix structure
C)   worldwide area structure
D)   performance structureE) None of the above
F) All of the above

Question 19

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Accepted Answer

A) True 
 B)False

Question 20

The norms and values systems that are shared among the employees of a company are referred to as _____.

Accepted Answer

A)   processes
B)   control systems
C)   incentives
D)   organizational cultureE) A) and B)
F) A) and C)

Exam 14: The Organization of International Business

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _____.

Correct AnswerverifiedShow Answer

It is difficult to ascertain accountability in the global matrix structure.

Correct AnswerverifiedShow Answer

Discuss the characteristics of a firm that is pursuing an international strategy.

Correct AnswerverifiedFirms pursuing an international strategy...View AnswerShow Answer

Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms.

Correct AnswerverifiedShow Answer

Which of the following is an argument favoring centralization?

Correct AnswerverifiedShow Answer

Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.

Correct AnswerverifiedShow Answer

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

Correct AnswerverifiedShow Answer

The norms and values systems that are shared among the employees of a company are referred to as _____.

Correct AnswerverifiedShow Answer

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

Correct AnswerverifiedShow Answer

_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Correct AnswerverifiedShow Answer

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Correct AnswerverifiedShow Answer

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Correct AnswerverifiedShow Answer

The worldwide product division structure facilitates local responsiveness.

Correct AnswerverifiedShow Answer

Refreezing an organization should happen quickly.

Correct AnswerverifiedShow Answer

Which of the following is a problem that arises due to an international division structure?

Correct AnswerverifiedShow Answer

Which of the following is true of a strong corporate culture?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To unfreeze the established culture of an organization, the company:

Correct AnswerverifiedShow Answer

In a _____ all roles are viewed as integrating roles.

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A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Correct AnswerverifiedShow Answer

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Firms pursuing an international strategy...
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