INTB CH 11 (MC)

ALL OF THE ABOVE
-Refers to the way that an organization formally arranges its various domestic and international units and activities, and the relationships among these organizational components.
-Helps to determine where formal power and authority will be located within the organization.
– Is primarily created and evolved by senior management.
Organizational structure
-Refers to the way that an organization formally arranges its various domestic and international units and activities, and the relationships among these organizational components.
-Helps to determine where formal power and authority will be located within the organization.
-Is primarily created and evolved by senior management.
(. Two of A, B and C.)
Organizational design
ALL OF THE ABOVE
-product and technical expertise, geographic expertise, and functional expertise.
– product and technical expertise, customer expertise, and functional expertise.
– geographical expertise, functional expertise, and customer expertise
The primary dimensions that need to be considered when designing the structure of an international company are
effective way to departmentalize, coordinating activities
In designing the organizational structure, management know two concerns, __________ and __________ run counter to each other.
-Managers have to consider the nature of their company’s international operating environment, both currently and how it is expected to change in the future.
– Managers have to consider the nature of their competitors’ international strategies, both currently and how they are expected to change in the future.
– Gains from increased specialization of labor may at times be nullified by the increased cost of coordination.

(two of A,B, and C)
(Competitors’ international strategies are not explicitly mentioned in the text as being a key consideration in developing an organization’s strategy.)

Regarding the structure of international companies
. none of the following is correct

do not have international divisions.
– are large companies with numerous overseas manufacturing facilities.
-are organized on the basis of products and do not have other organizing dimensions in a pure organization.)

Global companies
-. process
-customer class
(Two of B, C and D)
According to the text, which of the following dimensions provide the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?
-national subsidiary.
-domestic or international.
-function.
(all of B, C and D.)
According to the text, which of the following dimensions provide the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?
be more capable of developing strategies to confront new global competition.
Companies that adopted the global organizational form felt that this organization would:
-. eliminate the international division.
-establish worldwide organizations based on product, function, region, or customer classes at the top level.
(Two of the above)
As their overseas operations have increased in importance, companies have felt the need to:
from international division to worldwide product division to global matrix
The international structural stages model suggests that a typical evolutional path for an international company’s structure would be:
-frequently represents a return to pre-export department times.
-has domestic product divisions responsible for the worldwide operations such as marketing
(Two of A, B, and C)
The use of a global product organization structure:
manufacture products with a low technological content requiring strong marketing ability
The regionalized organization seems to be popular with companies that
-seems to be popular with companies that have diverse products, each with different product requirements, competitive environments, and political risks.
-often encounters problems with global product planning.

( Two of the above.)

) The regionalized organization
none of the above

(-the increased complexity of directing worldwide operations.
– its inappropriateness for use in global companies.
– its duplication of area and product specialists.)

Disadvantages of the regionalized organization structure include
and highly integrated product mix.
The common characteristic of multinationals that are organized by function at the upper level is a narrow:
matrix overlay
An organization in which top level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is known as a:
hybrid organization
A structure organized by more than one dimension at the top level is known as a:
the firm acquiring a company with distinct products and distribution channels.
A hybrid organization may result from
matrix
The __________ organization has evolved from management’s attempt to mesh product and regional and functional expertise while maintaining clear lines of authority.
two or more managers must agree on decisions, which can lead to slow decision making.
Problems with the matrix structure include
Strategic business units
__________ are organizational forms in which product divisions are defined as though they were independent businesses
-significant reduction of middle management.
– the empowerment of employees.
(Two of the above.)
Reengineering is
– the need for frequent reorganization.
– the need for reducing the size of middle management.

( Two of B, C, and D)

According to the text, companies are now accepting
. It permits greater flexibility than is associated with more typical corporate structures.
The potential benefits of the virtual corporation concept include:
puts greater decision making responsibility in the hands of middle managers
The horizontal corporation
state that this approach to organizing helps to place more decision-making responsibility in the hands of middle managers and other skilled professionals.
Proponents of the horizontal corporation:
ALL OF THE ABOVE
– put plans into effect.
-. learn if plans are working as intended.
– make corrections
Control activities are the efforts to
-. affiliates
-subsidiaries
(two of the above)
Companies controlled by other companies through ownership of enough voting stock to elect board-of-directors majorities are known as
ALL OF THE ABOVE
-IC headquarters.
-subsidiary headquarters.
-cooperatively by IC and subsidiary
Where are decisions made?
-product and equipment.
-competence of subsidiary

(Two of the above)

Some of the variables that determine which decision is made where include:
IC headquarters
The decisions to standardize product and equipment with which to make it and to tailor it to fit each national market are most likely to be made by
-how well the executives know one another.
– IC management understanding host country conditions.
-the financial condition of the parent company.

(Two of B, C, and E.)

Reliance on subsidiary management can depend on items such as
more decisions are made at headquarters of parent company
In larger, older organizations
– affected by currency and political stability
-based on tax, labor supply, and market conditions
(Two of A, B and C)
A decision to move production factors from one country to another would be:
the highest rate of inflation.
It is sensible for an IC to direct or allocate as much profit as reasonably possible to subsidiaries in countries with:
. at the IC headquarters
Price and profit allocation decisions are usually best made:
apply equally in joint venture situations.
All the reasons for making decisions at IC headquarters, at subsidiary headquarters, or cooperatively:
-a management contract.
-control of the finances or technology.
-putting people from the IC in important executive positions.
Some methods for the IC to maintain control of less than fifty-percent owned organizations are:
-financial and technological.
-market opportunities.
-political and economic events.
The types of information an IC needs to have reported by subsidiaries include: