INB 300 Chapter 12

Which of the following is a disadvantage of adopting a global standardization strategy?
It sacrifices local responsiveness.
Frolik Foods Inc., a fast food franchise in the United States, opens a new outlet in Germany. The franchise develops recipes in the U.S. and then transfers them to its outlets in Germany. Which of the following strategies is being used by Frolik Foods?
Home replication strategy
Unlike a transnational strategy, a global standardization strategy involves:
the development and retention of knowledge at the center and key locations.
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a localization strategy?
Knowledge is developed and retained within each subsidiary.
_____ can be defined as the structures, processes, and systems that actively develop, leverage, and transfer knowledge.
Knowledge management
Multinational enterprises that engage in a _____ strategy promote global learning and diffusion of innovations in multiple ways.
transnational
In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:
develop learning and innovative capabilities to leverage multinational presence as an asset.
Asset Sports, a sports equipment manufacturing company based in India, specializes in cricket equipment. It establishes a new manufacturing plant in Brazil that specializes in soccer equipment. Based on the integration-responsiveness framework, the strategy adopted by Asset Sports is called a(n) _____.
localization strategy
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a transnational strategy?
Knowledge is developed jointly and shared worldwide.
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a global standardization strategy?
Knowledge is mostly developed and retained at the center and key locations.
Formal structures are easier to observe and imitate than informal structures.
true
Which of the following is a disadvantage of a global product division structure?
It results in the suffering of local responsiveness.
In the context of organizational cultures, which of the following is true of a wolf culture?
It centers on relentless pursuit with highly motivated employees working overtime.
The two sets of pressures that multinational enterprises (MNEs) confront are _____.
cost reduction and local responsiveness
TrinkCan Inc., a soft drink company in Wales, establishes new branches in England, Australia, and the United States. To minimize its costs, the company uses similar packaging, distribution, and promotion across all the countries. According to the integration-responsiveness framework, which of the following strategies is used by TrinkCan?
Global standardization strategy
Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive.
true
Burger Mart, a fast food franchise in the U.S. is famous for its unique recipes that are a combination of a variety of spices. Their products are very popular in the U.S. They open a new outlet in Germany. They do not change their menu or their recipes as their menu and products are already popular in the U.S. Based on the integration-responsiveness framework, the strategy used by Burger Mart is a(n) _____.
home replication strategy
Managers need to actively develop learning and innovation capabilities to leverage multinational presence.
true
Centralized research and development guarantees persistent heterogeneity in the solutions generated by a company.
false
Which of the following is true of a localization strategy?
It is effective when pressures for cost reductions are low.
A hallmark of transnational multinational enterprises is a high degree of interdependence and extensive and bi-directional flows of knowledge.
true
Which of the following statements is true of a geographic area structure?
It encourages the fragmentation of the multinational enterprises into fiefdoms.
Formally, organizational charts specify the scope of responsibilities for various parties.
true
Widget Corp., a manufacturing firm in Lithuania, exports its manufactured tools to Wales. To protect its domestic firms, the Government of Wales imposes a 20 percent tax on the tools imported from Widget Corp. Therefore, Widget Corp. is subject to:
formal institutional frameworks erected by the host-country government.
The global matrix structure supports the goal of the transnational strategy, but in practice it is often difficult to deliver because:
managers have to deal with two bosses who are often in conflict.
Companies following a localization strategy differ from companies following a home replication strategy in that the companies following a localization strategy:
develop and retain knowledge within each subsidiary.
The global standardization strategy maximizes local responsiveness.
false
Tacit knowledge is non-codifiable, and its acquisition and transfer require hands-on practice.
true
Which of the following is an effect of adopting a local responsiveness strategy?
Costs of products and services are increased.
_____ means reacting to different consumer preferences and host-country demands.
local responsiveness
Global product division structure, which is the opposite of the geographic area structure, supports the transnational strategy.
false
Which of the following is a disadvantage of adopting a home replication strategy?
It often lacks local responsiveness.
From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm homogeneity.
false
Which of the following is an advantage of adopting a home replication strategy?
It is relatively easy to implement.
Which of the following statements is true of a global product division structure?
It is highly responsive to cost reduction pressures.
From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm heterogeneity. _____ virtually guarantees that there will be persistent heterogeneity in the solutions generated.
Decentralized R&D work performed by different teams around the world
Which of the following is a leading problem with the international division organizational structure?
It does not give sufficient voice to foreign subsidiary managers relative to the heads of domestic divisions.
Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:
have an understanding of the informal workings of multinational enterprises.
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?
Knowledge is developed at the center and transferred to subsidiaries.
Altonland Inc., a pharmaceutical company based in the United States, generally appoints a U.S. national as the head of its foreign subsidiaries for the first few years after a subsidiary is established. The company has been following this practice from the time it started its overseas operations. The given scenario illustrates:
the informal rules of the game.