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TB Chapter05

Chapter 5 discusses global organization design, focusing on the motivations for international expansion, such as economies of scale and scope. It outlines various organizational structures, including global product and geographic structures, and highlights the importance of knowledge transfer and integration in multinational firms. The chapter also examines the transnational model, which balances global efficiency with local responsiveness.
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100% found this document useful (1 vote)
12 views15 pages

TB Chapter05

Chapter 5 discusses global organization design, focusing on the motivations for international expansion, such as economies of scale and scope. It outlines various organizational structures, including global product and geographic structures, and highlights the importance of knowledge transfer and integration in multinational firms. The chapter also examines the transnational model, which balances global efficiency with local responsiveness.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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CHAPTER 5—GLOBAL ORGANIZATION DESIGN

MULTIPLE CHOICE

1. Yum! Brands, which owns Pizza Hut, Taco Bell, KFC, and Long John Silver's, gets ____ of
its profits from overseas.
a. 15 percent
b. 33 percent
c. 55 percent
d. 70 percent
ANS: C PTS: 1 REF: pg. 210
NAT: AACSB Analytic | Environmental Influence

2. Building a global presence expands an organization's scale of operations, enabling it to realize:


a. economies of scale.
b. economies of scope.
c. factors of production.
d. its international development stage.
ANS: A PTS: 1 REF: pg. 212
NAT: AACSB Reflective Thinking | Environmental Influence

3. Which of the following is not a primary factor that motivates companies to expand
internationally?
a. Cheaper production factors
b. Smaller number of distribution channels
c. Economies of scale
d. Economies of scope
ANS: B PTS: 1 REF: pg. 212
NAT: AACSB Analytic | Environmental Influence

4. ____ refers to the number and variety of products and services a company offers, as well as
the number and variety of regions, countries, and markets it serves.
a. Economies of scale
b. Market potential
c. Scope
d. Development stage
ANS: C PTS: 1 REF: pg. 213
NAT: AACSB Reflective Thinking | Environmental Influence

5. One of the earliest, and still one of the most powerful, motivations for U.S. companies to
invest abroad relates to ____: obtaining raw materials, labor, and other resources at the lowest
possible cost.
a. factors of production
b. economies of scope
c. economies of scale
265
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ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
266 ● chapter five
d. technological factors
ANS: A PTS: 1 REF: pg. 213
NAT: AACSB Reflective Thinking | Environmental Influence

6. Which stage is export-oriented and in a competitive position?


a. Multinational
b. Global
c. Domestic
d. International
ANS: A PTS: 1 REF: pg. 214
NAT: AACSB Reflective Thinking | Environmental Influence

7. In the ____ stage of international evolution, explosion occurs as international operations take
off.
a. global
b. domestic
c. multinational
d. international
ANS: C PTS: 1 REF: pg. 215
NAT: AACSB Reflective Thinking | Operations Management

8. Which of these operates in truly global fashion, and the entire world is their marketplace?
a. Multidomestic firms
b. Domestic organizations
c. Governmental agencies
d. Global companies
ANS: D PTS: 1 REF: pg. 215
NAT: AACSB Analytic | Environmental Influence

9. In the ____ stage, an international division has replaced the export department, and specialists
are hired to handle sales, service, and warehousing abroad.
a. domestic
b. international
c. global
d. multinational
ANS: B PTS: 1 REF: pg. 215
NAT: AACSB Reflective Thinking | Environmental Influence

10. The worldwide geographic or product structures are most likely to appear during the ____
stage of international evolution.
a. domestic
b. international
c. multinational
d. global
ANS: C PTS: 1 REF: pg. 215
NAT: AACSB Reflective Thinking | Creation of Value

11. All of the following, except ____, are typical alliances used for global expansion.

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 267
a. wholly-owned subsidiaries
b. joint ventures
c. consortia
d. licensing
ANS: A PTS: 1 REF: pg. 216
NAT: AACSB Analytic | Creation of Value

12. ____ is a popular approach to sharing development and production costs and penetrating new
markets.
a. Consortia
b. Licensing
c. Joint ventures
d. Franchising
ANS: C PTS: 1 REF: pg. 216
NAT: AACSB Reflective Thinking | Creation of Value

13. ____ are groups of independent companies that join together to share skills, resources, costs,
and access to one another's markets.
a. Joint ventures
b. Franchising
c. Licensing
d. Consortia
ANS: D PTS: 1 REF: pg. 216
NAT: AACSB Reflective Thinking | Creation of Value

14. Which of the following means that product design, manufacturing, and marketing strategy
are standardized throughout the world?
a. Globalization strategy
b. Standardization strategy
c. Multidomestic strategy
d. Transnational strategy
ANS: A PTS: 1 REF: pg. 216
NAT: AACSB Analytic | Strategy

15. A ____ strategy would encourage production design, assembly, and marketing tailored to the
specific needs of each country.
a. focused
b. multidomestic
c. globalization
d. joint venture
ANS: B PTS: 1 REF: pg. 217
NAT: AACSB Reflective Thinking | Strategy

16. When a company such as Coca-Cola decides to use the same product design and advertising
strategy throughout the world, it is following the ____ strategy.
a. multidomestic
b. consortia
c. focused
d. globalization

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
268 ● chapter five

ANS: D PTS: 1 REF: pg. 217


NAT: AACSB Analytic | Strategy

Organization Chart 6.1

17. Reference Organization Chart 6.1. Comparing the structure that is diagramed to a global
geographic structure:
a. the firm shown above is not as far along in developing opportunities for multidomestic
strategy as the global geographic structure would be.
b. product managers differ in that in the chart above, the product heads are line managers
primarily accountable for their product domestically whereas in the global geographic
structure, product coordinators are staff advisors.
c. the structure shown is better than the global geographic structure.
d. the global geographic structure is more domestically oriented than the one above.
ANS: A PTS: 1 REF: pg. 218-219
NAT: AACSB Analytic | Strategy

18. Reference Organization Chart 6.1. This structure is:


a. global functional structure.
b. domestic hybrid.
c. global matrix.
d. global product division.
ANS: B PTS: 1 REF: pg. 218-219
NAT: AACSB Analytic | Strategy

19. Which of the following strategies should an organization pursue if the forces for national
responsiveness and the forces for global integration are high?
a. Export
b. Multidomestic
c. Globalization
d. Globalization and multidomestic
ANS: D PTS: 1 REF: pg. 218
NAT: AACSB Analytic | Strategy

Organization Chart 6.2

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 269

20. Reference Organization Chart 6.2. In this organization:


a. law, engineering, and finance are considered product groups.
b. because this organization is too complex, it would be better to return to a functional
structure.
c. global product heads provide the function of a full-time staff integrator.
d. global product heads are usually accountable for profit and loss of their product in
worldwide sales.
ANS: D PTS: 1 REF: pg. 220-221
NAT: AACSB Analytic | Strategy

21. Reference Organization Chart 6.2. This structure is:


a. Global geographic division structure
b. Global matrix structure
c. Global product division structure
d. Global functional structure
ANS: C PTS: 1 REF: pg. 220-221
NAT: AACSB Analytic | Strategy

22. The global product structure works best when a division handles products that:
a. are technologically dissimilar.
b. can be standardized for marketing worldwide.
c. obsolete in one country, but not in another.
d. cheap and easy to produce.
ANS: B PTS: 1 REF: pg. 220
NAT: AACSB Analytic | Environmental Influence

23. The global product structure:


a. utilizes country managers who are accountable for profit and loss of every product.
b. fits well with customization of production or marketing.
c. may result in competition among product divisions.
d. will insure that all countries are covered well.
ANS: C PTS: 1 REF: pg. 220
NAT: AACSB Reflective Thinking | Creation of Value

24. The global geographic division structure:


a. is most useful for new product lines.
b. works well for products with rapidly changing technologies.
c. works best if there are similar needs for the product across countries.
d. may cause product planning on a global scale to be challenging.

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
270 ● chapter five

ANS: D PTS: 1 REF: pg. 222


NAT: AACSB Reflective Thinking | Creation of Value

25. The global matrix structure:


a. will increase horizontal coordination, but will decrease vertical coordination.
b. works best when there is pressure for decision making that balances the interests of both
product standardization and geographical localization.
c. commonly utilizes matrix bosses as functional and product heads.
d. is usually found in firms that have reached the "international stage" of international
evolution.
ANS: B PTS: 1 REF: pg. 224
NAT: AACSB Reflective Thinking | Creation of Value

26. ____ are typical in highly volatile environments.


a. Hybrid structures
b. Global geographic structures
c. Global matrix structures
d. Transnational structures
ANS: A PTS: 1 REF: pg. 225
NAT: AACSB Reflective Thinking | Environmental Influence

27. Which of the following is not a primary segment of the global organizational challenge?
a. The problem of transferring knowledge across a global firm
b. Greater complexity and differentiation
c. The need for integration
d. The need for KSAs
ANS: D PTS: 1 REF: pg. 226
NAT: AACSB Analytic | Environmental Influence

28. As organizations become more differentiated, with multiple products, divisions, departments,
and positions scattered across numerous countries, managers face a tremendous ____ challenge.
a. knowledge transfer
b. differentiation
c. integration
d. development
ANS: C PTS: 1 REF: pg. 228
NAT: AACSB Reflective Thinking | Creation of Value

29. All of the following are reasons why many organizations tap only a fraction of the potential
that is available from cross-border transfer of knowledge and innovation, except:
a. Barriers of language, cultural, and geographic distances.
b. Lack of trust among people at different locations.
c. Divisions sometimes view knowledge and innovation as power and want to hold onto it.
d. Economies of scope can increase a company's market power as compared to competitors.
ANS: D PTS: 1 REF: pg. 229

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 271
NAT: AACSB Analytic | Creation of Value

30. ____ teams are cross-border work groups made up of multiskilled, multinational members
whose activities span multiple countries.
a. Management
b. Global
c. Functional
d. Focus
ANS: B PTS: 1 REF: pg. 230
NAT: AACSB Reflective Thinking | Environmental Influence

31. In one survey, 70 percent of global companies reported that the most important function of
corporation headquarters was to:
a. make shareholders happy.
b. provide enterprise leadership.
c. provide extensive training.
d. develop new goals and visions for the company frequently.
ANS: B PTS: 1 REF: pg. 231
NAT: AACSB Reflective Thinking | Leadership Principles

32. Some organizations create formal ____ positions to coordinate information and activities
related to key customer accounts.
a. functional manager
b. transnational team
c. network coordinator
d. division network
ANS: C PTS: 1 REF: pg. 232
NAT: AACSB Reflective Thinking | Information Technologies

33. High ____ means that people accept inequality in power among institutions, organizations,
and people.
a. uncertainty avoidance
b. power distance
c. employee empowerment
d. integration
ANS: B PTS: 1 REF: pg. 233
NAT: AACSB Reflective Thinking | Creation of Value

34. The ____ model reflects the ultimate in both organizational complexity, with many diverse
units, and organizational coordination, with mechanisms for integrating the varied parts.
a. transformative
b. transnational
c. global
d. multidomestic
ANS: B PTS: 1 REF: pg. 237
NAT: AACSB Diversity | Environmental Influence

35. All of the following are characteristics that distinguish the transnational organization from
other global organization forms except:

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272 ● chapter five
a. assets and resources are dispersed worldwide into highly specialized operations that are
linked together through interdependent relationships.
b. structures are stable.
c. subsidiary managers initiate strategy and innovations that become strategy for the
corporation as a whole.
d. unification and coordination are achieved primarily through corporate culture, shared
vision and values, and management style rather than through formal structures and
systems.
ANS: B PTS: 1 REF: pg. 237 | pg. 239
NAT: AACSB Analytic | Environmental Influence

36. The transnational model is characterized by:


a. using shared vision and values to achieve coordination in this horizontal structure.
b. being one step short of the matrix in exploiting both global and local advantages for the
corporation as well as multiple interrelated competitive issues.
c. has a single headquarters and a single center of control for each country and for each
product line.
d. there is no single corporate headquarters, but there is a clear hierarchical responsibility.
ANS: A PTS: 1 REF: pg. 239
NAT: AACSB Analytic | Creation of Value

TRUE/FALSE

1. Four primary factors motivate companies to expand internationally: profitability, economies of


scale, economies of scope, and low-cost production factors.

ANS: F PTS: 1 REF: pg. 212


NAT: AACSB Diversity | Environmental Influence

2. Building a global presence expands an organization's scale of operations, enabling it to realize


economies of scale.

ANS: T PTS: 1 REF: pg. 212


NAT: AACSB Reflective Thinking | Environmental Influence

3. Having a presence in multiple countries provides marketing power and synergy compared to
the same size firm that has presence in fewer countries.

ANS: T PTS: 1 REF: pg. 213


NAT: AACSB Analytic | Creation of Value

4. The second stage of international evolution, "International Stage," will usually be structured
with a domestic structure with an export department.

ANS: F PTS: 1 REF: pg. 214


NAT: AACSB Analytic | Creation of Value

5. A company typically shifts its interest from domestic activity to exporting in the 3rd stage
(multinational) of international development.

ANS: F PTS: 1 REF: pg. 214


NAT: AACSB Analytic | Creation of Value

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ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 273

6. The international stage of international development means that exports are taken seriously
and that the company deals with the competitive issues of each country separately.

ANS: T PTS: 1 REF: pg. 214


NAT: AACSB Reflective Thinking | Creation of Value

7. Stage two is the global stage which means the company takes exports seriously and begins to
think multidomestically.

ANS: F PTS: 1 REF: pg. 215


NAT: AACSB Reflective Thinking | Environmental Influence

8. Truly global companies no longer think if themselves as having a single home country and
have been called stateless corporations.

ANS: T PTS: 1 REF: pg. 215


NAT: AACSB Reflective Thinking | Environmental Influence

9. A joint venture is a separate entity created with two or more active firms as sponsors.

ANS: T PTS: 1 REF: pg. 216


NAT: AACSB Reflective Thinking | Creation of Value

10. Managers and organizations all over the world are very reluctant to cooperate to achieve
competitive advantage on a global scale.

ANS: F PTS: 1 REF: pg. 216


NAT: AACSB Analytic | Individual Dynamics

11. The globalization strategy means that product design, manufacturing, and marketing strategy
are standardized throughout the world, whereas a multidomestic strategy means that competition
in each country is handled independently of competition in other countries.

ANS: T PTS: 1 REF: pg. 216-217


NAT: AACSB Analytic | Strategy

12. In parts of Mexico, laundry detergent is used to wash dishes, not clothes, pointing out the
need for a multidomestic strategy.

ANS: T PTS: 1 REF: pg. 217


NAT: AACSB Analytic | Strategy

13. If the forces for national responsiveness and the forces for global integration are high, then a
multidomestic strategy with a global geographic structure would be the best fit.

ANS: F PTS: 1 REF: pg. 218


NAT: AACSB Analytic | Environmental Influence

14. In many instances, companies will need to respond to both global and local opportunities
simultaneously, in which case the global matrix structure can be used.

ANS: T PTS: 1 REF: pg. 219

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ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
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274 ● chapter five
NAT: AACSB Reflective Thinking | Environmental Influence

15. As companies begin to explore international opportunities, they typically start with an
international division that grows into an export department.

ANS: F PTS: 1 REF: pg. 219


NAT: AACSB Analytic | Creation of Value

16. Functional structures are found more frequently in a worldwide business than in a domestic
business.

ANS: F PTS: 1 REF: pg. 220


NAT: AACSB Analytic | Creation of Value

17. With a global geographic division structure, each division's manager is responsible for
planning, organizing, and controlling all functions for the production and distribution of its
products for any market around the world.

ANS: F PTS: 1 REF: pg. 220


NAT: AACSB Analytic | Creation of Value

18. The product-based structure works best when a division handles products that are
technologically similar and can be standardized for marketing around the world.

ANS: T PTS: 1 REF: pg. 220


NAT: AACSB Reflective Thinking | Creation of Value

19. The global geographic structure divides the world into geographical regions, with each
geographical division reporting to the CEO.

ANS: T PTS: 1 REF: pg. 221


NAT: AACSB Reflective Thinking | Creation of Value

20. To meet new competitive threats, many manufacturing firms are emphasizing the ability to
customize their products to meet specific needs, which requires a greater emphasis on global
responsiveness.

ANS: F PTS: 1 REF: pg. 222


NAT: AACSB Analytic | Creation of Value

21. The global product division structure works best when pressure for decision-making balances
the interests of both product standardization and geographical localization and when coordination
to share resources is important.

ANS: F PTS: 1 REF: pg. 224


NAT: AACSB Analytic | Creation of Value

22. Hybrid structures are typical in highly volatile environments.

ANS: T PTS: 1 REF: pg. 225


NAT: AACSB Reflective Thinking | Environmental Influence

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ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 275
23. Innovation refers to the quality of collaboration across organizational units.

ANS: F PTS: 1 REF: pg. 228


NAT: AACSB Reflective Thinking | Creation of Value

24. The "not-invented-here" syndrome makes some managers reluctant to tap into the know-how
and expertise of other units.

ANS: T PTS: 1 REF: pg. 229


NAT: AACSB Analytic | Individual Dynamics

25. A transnational team is a work group made up of multinational members whose activities
span multiple countries.

ANS: T PTS: 1 REF: pg. 230


NAT: AACSB Reflective Thinking | Group Dynamics

26. Functional managers coordinate across functions, whereas country managers coordinate
among countries.

ANS: F PTS: 1 REF: pg. 231-232


NAT: AACSB Analytic | Individual Dynamics

27. Network coordinators would enable a manufacturing organization to provide knowledge and
integrated solutions across multiple business, divisions, and countries for a large customer.

ANS: T PTS: 1 REF: pg. 232


NAT: AACSB Reflective Thinking | Information Technologies

28. High uncertainty avoidance means that people accept inequality in power among institutions,
organizations, and people.

ANS: F PTS: 1 REF: pg. 233


NAT: AACSB Analytic | Creation of Value

29. Low uncertainty avoidance means that people have a high tolerance for the unstructured, the
unclear, and the unpredictable.

ANS: T PTS: 1 REF: pg. 233


NAT: AACSB Analytic | Creation of Value

30. Many large international companies are moving toward a multidomestic model of
organization.

ANS: F PTS: 1 REF: pg. 236


NAT: AACSB Reflective Thinking | Environmental Influence

31. The transnational model reflects the ultimate in both organizational complexity, with many
diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

ANS: T PTS: 1 REF: pg. 237


NAT: AACSB Analytic | Creation of Value

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
276 ● chapter five

32. The management philosophy of transnational model is based on interdependence rather than
either full divisional independence or total dependence of these units on headquarters for decision
making and control.

ANS: T PTS: 1 REF: pg. 237


NAT: AACSB Reflective Thinking | Creation of Value

ESSAY

Case 6.0

It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its
functions such as product development, sales, and engine/transmissions under their own
executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a
structure that would avoid costly duplication in different parts of the world and that would foster
Ford's developing models such as its Mondeo (Europe) and Contour (U.S.) which could sell
worldwide with few modifications. Trotman wanted a company that was strong internationally in
product development, manufacturing, and purchasing that could take advantage of where Ford's
strength was around the world.

The company had been organized geographically into three relatively independent divisions--
Ford North America, Ford of Europe, and Ford Asia/Pacific. The new product cited above, the
Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination
time between the sometimes-conflicting European and North American divisions. Elimination of
duplication was a goal of the new structure.

Simultaneously a new "program team facility" was being constructed so that all of Ford's new
product development would be by teams. The new coupe Mustang was borne from an
experimental cross-functional team that designed the product in less than three years compared to
Ford's normal four to five year development cycle. Trotman emphasized that he wanted to change
the process, not just the structure, by which new products were developed. Ford apparently found
the team process convincing because the Mustang was developed on a budget about 30% lower
than comparable project budgets.

SOURCE: "Ford to Realign With a System of Global Chiefs," The Wall Street Journal, March
31, 1994, pages A3-A4.

1. Reference Case 6.0. Identify the strategy given in our textbook that Ford appeared to be
adopting. Describe advantages and disadvantages of that strategy for Ford. Why do you think
CEO Trotman moved to that strategy?

PTS: 1 REF: pg. 218 NAT: AACSB Analytic | Strategy

2. Reference Case 6.0. Draw out an organization chart showing the structure that Ford had been
using; place in your chart the functional departments and geographic departments that are
mentioned in the case. Then, in contrast, draw out an organization chart showing the relationships
proposed in this case; again place in your chart the functional departments and geographic
departments that are mentioned in the case. Label each organization chart.

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 277
PTS: 1 REF: pg. 223
NAT: AACSB Reflective Thinking | Creation of Value

3. Reference Case 6.0. Describe how Ford's proposed structural changes are rather different from
the usual progression resulting from international development. Describe how Ford's proposed
structural changes parallel the new designs for domestic and global advantage.

PTS: 1 REF: pg. 230


NAT: AACSB Analytic | Environmental Influence

4. Reference Case 6.0. In a general sense, what do you see as the primary differences between
horizontal corporations and functionally organized corporations? Apply your observations to the
Ford case and comment on any difficulties you might see in Ford being able to adopt the
philosophy and behavior of a horizontal corporation as they made the structural change CEO
Trotman outlined.

PTS: 1 REF: pg. 230-232 NAT: AACSB Analytic | Creation of Value

5. Why has globalization and global experience in management become so important to


organizations?

PTS: 1 REF: pg. 210 NAT: AACSB Analytic | Leadership Principles

6. Discuss each of the motivations for global expansion.

PTS: 1 REF: pg. 211


NAT: AACSB Reflective Thinking | Motivation Concepts

7. Select any organization with which you are familiar--your college, the Toyota dealership down
the road, a corporation where you work, etc. Analyze the global forces that influence the
organization you selected. How should the organization respond to those global forces in order to
gain international competitive advantage?

PTS: 1 REF: pg. 212


NAT: AACSB Analytic | Environmental Influence

8. Describe the stages of international evolution in terms of their strategic orientation.

PTS: 1 REF: pg. 214 NAT: AACSB Reflective Thinking | Strategy

9. What are the international strategic alliances that companies can choose from to expand
globally? Discuss and give an example of each.

PTS: 1 REF: pg. 215


NAT: AACSB Reflective Thinking | Creation of Value

10. Which type of international strategic alliance, if any, would you recommend for a business
that wanted to gain entry into China? Explain the reasons behind your choice.

PTS: 1 REF: pg. 216 NAT: AACSB Analytic | Creation of Value

11. Compare and contrast the typical alliances: licensing, joint ventures, and consortia.

PTS: 1 REF: pg. 216 NAT: AACSB Reflective Thinking | Strategy

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
278 ● chapter five

12. Compare and contrast the globalization strategy and the multidomestic strategy. Give an
example of effective use of each strategy.

PTS: 1 REF: pg. 216-217 NAT: AACSB Analytic | Strategy

13. When should a company begin using an international division? What problems are likely to
be solved? As the company progresses in its international development, what problems will likely
not be solved by this structure?

PTS: 1 REF: pg. 219 NAT: AACSB Analytic | Creation of Value

14. Under what conditions should an organization consider a global geographic structure as
opposed to a global product structure?

PTS: 1 REF: pg. 220-221


NAT: AACSB Reflective Thinking | Environmental Influence

15. Discuss the global geographic division structure.

PTS: 1 REF: pg. 221


NAT: AACSB Reflective Thinking | Environmental Influence

16. Compare and contrast the global product division structure and global matrix structure. Draw
a diagram of each.

PTS: 1 REF: pg. 220 | pg. 223


NAT: AACSB Reflective Thinking | Environmental Influence

17. Discuss the global matrix structure. Give an example.

PTS: 1 REF: pg. 223


NAT: AACSB Reflective Thinking | Environmental Influence

18. What are the three primary segments of the global organizational challenge? Discuss each.

PTS: 1 REF: pg. 226-228


NAT: AACSB Reflective Thinking | Environmental Influence

19. List the reasons why most organizations tap only a fraction of the potential that is available
from the cross-border transfer of knowledge.

PTS: 1 REF: pg. 229


NAT: AACSB Reflective Thinking | Creation of Value

20. The most advanced and competitive use of global teams involves simultaneous contributions
in three strategic areas. List these three areas.

PTS: 1 REF: pg. 230 NAT: AACSB Reflective Thinking | Strategy

21. List the benefits that result from interunit collaboration.

PTS: 1 REF: pg. 232

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.
GLOBAL ORGANIZATION DESIGN ● 279
NAT: AACSB Reflective Thinking | Creation of Value

22. Discuss the national value systems.

PTS: 1 REF: pg. 233


NAT: AACSB Reflective Thinking | Creation of Value

23. Discuss the three primary approaches to coordination and control as represented by Japanese,
American, and European companies.

PTS: 1 REF: pg. 235-236


NAT: AACSB Diversity | Environmental Influence

24. List and discuss the characteristics that distinguish the transnational organization from other
global organization forms.

PTS: 1 REF: pg. 237-240 NAT: AACSB Analytic | Creation of Value

© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be dif-
ferent from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
.

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