Question 1. Structure must fit __________ or it will not work.
A. the environment
B. corporate traditions and history
C. cultural factors
D. strategy
Question 2.Which of the following is a major variable to take into account in organization design?
A. Size
B. Environment
C. Technology
D. all of the above
Question 3. An international division may be organized along what lines?
A. Vertical and horizontal
B. Functional, product, and geographic
C. Differentiated and integrated
D. Centralized and decentralized
Question 4. Within an international division structure, conflict may arise among divisions of the firms because:
A. the structure is not very efficient.
B. the structure creates diseconomies of scale.
C. more resources tend to be provided to the international division.
D. the international division is not sufficiently responsive to local cultural differences.
Question 5.The global __________ structure is designed on the basis of discrete skill areas.
A. horizontal
B. functional
C. decentralized
D. integrated
Question 6. Strategic business units (SBUs) are most often associated with what organizational stage?
A. Matrix
B. Functional
C. Global product
D. Geographic
Question 7. Regardless of the stage of internationalization, a firm's structural choices always involve which two opposing forces?
A. Strategy and operations
B. Integration and differentiation
C. Globalization and localization
D. Matrix and decentralization
Question 8.What is the downside of rationalization?
A. Too much emphasis on centralized decision making
B. Over-reliance on decentralized decision making
C. Use of the matrix structure
D. Lack of differentiation and specialization for local markets
Question 9.The purpose of Proctor and Gamble's new Four Pillars organizational structure was to enable it to:
A. think globally and act locally.
B. become more local and less global.
C. become more global and less local.
D. become completely global.
Question 10.The success of Levi Strauss turns on its ability to fashion a global strategy that does NOT:
A. create an organizational bureaucracy.
B. break up or threaten global alliances.
C. inhibit local initiative.
D. create excessive vulnerability to cultural threats.
Question 11.The bamboo network refers to:
A. the Chinese keiretsu.
B. the overseas Chinese global network.
C. the Chinese businesses operating in China.
D. all of the above.
Question 12. The network of alliances of the ethnic Chinese is based on __________: personal connections among families, business friends, and political associations.
A. guanxi
B. keiretsu
C. xiamen
D. kao
Question 13. When the ever-expanding transnational linkages of an MNC consist of different companies, subsidiaries, units of the firm, suppliers, or individuals, they result in:
A. profits.
B. financial surpluses.
C. matrix structures.
D. relational networks.
Question 14. The new organizational structure at Intel which allowed customizing a range of chips in a combination suitable for a particular target market is known as:
A. customization.
B. integration.
C. platformisation.
D. differentiation.
Question 15. Transnational structure, such as what ABB has, is less a matter of boxes on an organizational chart and more a matter of:
A. controls.
B. communication.
C. alliances.
D. changes.
Question 16. The logic of the new global Web may be that the location of __________ is unimportant.
A. markets
B. a firm's headquarters
C. technology
D. venture financing
Question 17. Two major variables in choosing the structure and design of an organization are the opportunities and need for:
A. globalization and localization.
B. localization and differentiation.
C. integration and rationalization.
D. rationalization and globalization.
Question 18. Contingency theory proposes that the best organizational structure is that which:
A. brings about operational efficiency.
B. brings about tight control of subsidiaries.
C. provides for balanced control.
D. allows the firm to carry out its strategic goals.
Question 19. All of the following are control mechanisms in multinational organizational structures EXCEPT:
A. output control.
B. virtual control.
C. bureaucratic control.
D. organization control.
Question 20. Which of the following is NOT recognized as a financial variable in MNC reports that complicates financial statements and performance evaluations?
A. Exchange rates
B. Inflation levels
C. Political systems
D. Transfer prices