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69) The need for coordination between subunits is greatest in firms pursuing
A) a localization strategy.
B) an international strategy.
C) a global strategy.
D) a transnational strategy.
70) ________ refers to giving a person in each subunit responsibility for coordinating with another
subunit on a regular basis.
A) Global learning
B) Liaison roles
C) Knowledge network
D) Matrix structures
71) ________ is valuable because it can be used as a nonbureaucratic conduit for information
flows within a multinational enterprise.
A) A liaison network
B) A matrix structure
C) An organizational structure
D) A knowledge network
72) Which control system is most widely used by small firms?
A) personal
B) output
C) bureaucratic
D) cultural
73) ________ control is achieved by comparing actual performance against targets and
intervening selectively to take corrective action.
A) Personal
B) Output
C) Bureaucratic
D) Cultural
74) There is low interdependence, performance ambiguity, and costs of control in firms pursuing
A) a localization strategy.
B) an international strategy.
C) a transnational strategy.
D) a global strategy.
75) Which of the following is true of a strong corporate culture?
A) Almost all managers share a relatively consistent set of values and norms that have a clear
impact on the way work is performed.
B) A strong culture leads to high performance.
C) Outsiders see firms with a strong culture as being autocratic and inflexible.
D) A strong culture is always a good culture.
76) ________ refers to the location of decision-making responsibilities within a structure.
A) Vertical differentiation
B) Integrating mechanisms
C) Horizontal integration
D) Horizontal differentiation
77) What type of control system achieves control through a system of rules and procedures that
directs the actions of subunits?
A) personal controls
B) bureaucratic controls
C) cultural controls
D) output controls
78) Which of the following is a potential drawback of the worldwide area structure?
A) This structure discourages division of the organization into autonomous entities.
B) This structure makes it difficult to decentralize decisions regarding operations authority.
C) This structure makes it difficult to realize location and experience curve economies.
D) This structure reduces local responsiveness.
79) The establishment of integrating mechanisms that coordinate subunits is a dimension of
A) horizontal differentiation.
B) organizational culture.
C) vertical differentiation.
D) organizational structure.
80) In Firm A, each division is a self-contained, largely autonomous entity with full responsibility
for its own value creation activities. What type of structure does Firm A employ?
A) worldwide product division structure
B) global matrix structure
C) worldwide area structure
D) knowledge network structure
81) In the ________, the philosophy is that responsibility for operating decisions pertaining to a
particular product should be shared by the product division and the various areas of the firm.
A) worldwide product division structure
B) classic global matrix structure
C) worldwide area structure
D) knowledge network structure
82) When the need to integrate subunits is very high and complex, firms may
A) use direct contact between subunit managers.
B) give a person in each subunit responsibility for coordinating with another subunit on a regular
basis.
C) institute a matrix structure, in which all roles are viewed as integrating roles.
D) use temporary or permanent teams composed of individuals from the subunits that need to
achieve coordination.
83) ________ is achieved by comparing actual performance against targets and intervening
selectively to take corrective action.
A) Personal control
B) Cultural control
C) Bureaucratic control
D) Output control
84) ________ exists when the causes of a subunit's poor performance are not clear.
A) Performance ambiguity
B) Vertical differentiation
C) Output controls
D) Horizontal differentiation
85) Which of the following is a disadvantage of a worldwide area structure?
A) Firms that use this structure tend to have a high degree of diversification.
B) Decision making is centralized and subsidiaries cannot customize to local marketing needs.
C) The structure encourages fragmentation of the organization into highly autonomous entities.
D) It does not facilitate local responsiveness.
86) All of the following are strategies that multinational firms pursue except a ________ strategy.
A) localization
B) domestic
C) transnational
D) global
87) Firms pursuing ________ attempt to create value by transferring core competencies from
home to foreign subsidiaries.
A) a localization strategy
B) an international strategy
C) a transnational strategy
D) a global strategy
88) A firm that operates with matrix-type structures in which both product divisions and
geographic areas have significant influence would use which of the following strategies?
A) international strategy
B) transnational strategy
C) global strategy
D) localization strategy
