INB 300 Chapter 12 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Which of the following is a disadvantage of adopting a global standardization strategy?
answer
It sacrifices local responsiveness.
question
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?
answer
Home replication strategy
question
Unlike a transnational strategy, a global standardization strategy involves:
answer
the development and retention of knowledge at the center and key locations.
question
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a localization strategy?
answer
Knowledge is developed and retained within each subsidiary.
question
_____ can be defined as the structures, processes, and systems that actively develop, leverage, and transfer knowledge.
answer
Knowledge management
question
Multinational enterprises that engage in a _____ strategy promote global learning and diffusion of innovations in multiple ways.
answer
transnational
question
In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:
answer
develop learning and innovative capabilities to leverage multinational presence as an asset.
question
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) _____.
answer
localization strategy
question
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a transnational strategy?
answer
Knowledge is developed jointly and shared worldwide.
question
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a global standardization strategy?
answer
Knowledge is mostly developed and retained at the center and key locations.
question
Formal structures are easier to observe and imitate than informal structures.
answer
true
question
Which of the following is a disadvantage of a global product division structure?
answer
It results in the suffering of local responsiveness.
question
In the context of organizational cultures, which of the following is true of a wolf culture?
answer
It centers on relentless pursuit with highly motivated employees working overtime.
question
The two sets of pressures that multinational enterprises (MNEs) confront are _____.
answer
cost reduction and local responsiveness
question
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?
answer
Global standardization strategy
question
Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive.
answer
true
question
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) _____.
answer
home replication strategy
question
Managers need to actively develop learning and innovation capabilities to leverage multinational presence.
answer
true
question
Centralized research and development guarantees persistent heterogeneity in the solutions generated by a company.
answer
false
question
Which of the following is true of a localization strategy?
answer
It is effective when pressures for cost reductions are low.
question
A hallmark of transnational multinational enterprises is a high degree of interdependence and extensive and bi-directional flows of knowledge.
answer
true
question
Which of the following statements is true of a geographic area structure?
answer
It encourages the fragmentation of the multinational enterprises into fiefdoms.
question
Formally, organizational charts specify the scope of responsibilities for various parties.
answer
true
question
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:
answer
formal institutional frameworks erected by the host-country government.
question
The global matrix structure supports the goal of the transnational strategy, but in practice it is often difficult to deliver because:
answer
managers have to deal with two bosses who are often in conflict.
question
Companies following a localization strategy differ from companies following a home replication strategy in that the companies following a localization strategy:
answer
develop and retain knowledge within each subsidiary.
question
The global standardization strategy maximizes local responsiveness.
answer
false
question
Tacit knowledge is non-codifiable, and its acquisition and transfer require hands-on practice.
answer
true
question
Which of the following is an effect of adopting a local responsiveness strategy?
answer
Costs of products and services are increased.
question
_____ means reacting to different consumer preferences and host-country demands.
answer
local responsiveness
question
Global product division structure, which is the opposite of the geographic area structure, supports the transnational strategy.
answer
false
question
Which of the following is a disadvantage of adopting a home replication strategy?
answer
It often lacks local responsiveness.
question
From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm homogeneity.
answer
false
question
Which of the following is an advantage of adopting a home replication strategy?
answer
It is relatively easy to implement.
question
Which of the following statements is true of a global product division structure?
answer
It is highly responsive to cost reduction pressures.
question
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.
answer
Decentralized R&D work performed by different teams around the world
question
Which of the following is a leading problem with the international division organizational structure?
answer
It does not give sufficient voice to foreign subsidiary managers relative to the heads of domestic divisions.
question
Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:
answer
have an understanding of the informal workings of multinational enterprises.
question
In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?
answer
Knowledge is developed at the center and transferred to subsidiaries.
question
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:
answer
the informal rules of the game.
