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Organizational structure

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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.

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Organizational design

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-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.)

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The primary dimensions that need to be considered when designing the structure of an international company are

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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

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In designing the organizational structure, management know two concerns, __________ and __________ run counter to each other.

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effective way to departmentalize, coordinating activities

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Regarding the structure of international companies

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-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.)

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Global companies

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. 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.)

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According to the text, which of the following dimensions provide the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?

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-. process -customer class (Two of B, C and D)

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According to the text, which of the following dimensions provide the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?

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-national subsidiary. -domestic or international. -function. (all of B, C and D.)

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Companies that adopted the global organizational form felt that this organization would:

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be more capable of developing strategies to confront new global competition.

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As their overseas operations have increased in importance, companies have felt the need to:

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-. eliminate the international division. -establish worldwide organizations based on product, function, region, or customer classes at the top level. (Two of the above)

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The international structural stages model suggests that a typical evolutional path for an international company's structure would be:

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from international division to worldwide product division to global matrix

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The use of a global product organization structure:

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-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)

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The regionalized organization seems to be popular with companies that

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manufacture products with a low technological content requiring strong marketing ability

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) The regionalized organization

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-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.)

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Disadvantages of the regionalized organization structure include

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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.)

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The common characteristic of multinationals that are organized by function at the upper level is a narrow:

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and highly integrated product mix.

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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:

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matrix overlay

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A structure organized by more than one dimension at the top level is known as a:

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hybrid organization

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A hybrid organization may result from

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the firm acquiring a company with distinct products and distribution channels.

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The __________ organization has evolved from management's attempt to mesh product and regional and functional expertise while maintaining clear lines of authority.

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matrix

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Problems with the matrix structure include

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two or more managers must agree on decisions, which can lead to slow decision making.

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__________ are organizational forms in which product divisions are defined as though they were independent businesses

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Strategic business units

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Reengineering is

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-significant reduction of middle management. - the empowerment of employees. (Two of the above.)

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According to the text, companies are now accepting

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- the need for frequent reorganization. - the need for reducing the size of middle management. ( Two of B, C, and D)

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The potential benefits of the virtual corporation concept include:

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. It permits greater flexibility than is associated with more typical corporate structures.

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The horizontal corporation

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puts greater decision making responsibility in the hands of middle managers

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Proponents of the horizontal corporation:

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state that this approach to organizing helps to place more decision-making responsibility in the hands of middle managers and other skilled professionals.

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Control activities are the efforts to

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ALL OF THE ABOVE - put plans into effect. -. learn if plans are working as intended. - make corrections

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Companies controlled by other companies through ownership of enough voting stock to elect board-of-directors majorities are known as

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-. affiliates -subsidiaries (two of the above)

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Where are decisions made?

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ALL OF THE ABOVE -IC headquarters. -subsidiary headquarters. -cooperatively by IC and subsidiary

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Some of the variables that determine which decision is made where include:

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-product and equipment. -competence of subsidiary (Two of the above)

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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

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IC headquarters

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Reliance on subsidiary management can depend on items such as

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-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.)

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In larger, older organizations

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more decisions are made at headquarters of parent company

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A decision to move production factors from one country to another would be:

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- affected by currency and political stability -based on tax, labor supply, and market conditions (Two of A, B and C)

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It is sensible for an IC to direct or allocate as much profit as reasonably possible to subsidiaries in countries with:

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the highest rate of inflation.

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Price and profit allocation decisions are usually best made:

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. at the IC headquarters

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All the reasons for making decisions at IC headquarters, at subsidiary headquarters, or cooperatively:

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apply equally in joint venture situations.

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Some methods for the IC to maintain control of less than fifty-percent owned organizations are:

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-a management contract. -control of the finances or technology. -putting people from the IC in important executive positions.

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The types of information an IC needs to have reported by subsidiaries include:

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-financial and technological. -market opportunities. -political and economic events.

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