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135.
Rather than building competence from the ground up and incurring high startup costs that
could limit future production decisions, ____________ form a network of dynamic
relationships that allows them to take advantage of the competencies of other
organizations in order to respond rapidly to changing circumstances.
136.
The virtual corporation form of organization can have disadvantages, including the
potential to ______ management's control over the corporation's activities and leave the
corporation vulnerable to the opportunistic actions of partners, including cost increases,
unintended "borrowing" of technical and other knowledge, and departure from the
relationship at inappropriate times.
137.
A form of organization characterized by lateral decision processes, horizontal networks,
and a strong corporatewide business philosophy is a ______________ corporation.
138.
The horizontal organization has been characterized as "anti______" because its designers
are seeking to remove the constraints imposed by the more conventional organizational
structures. Employees worldwide create, build, and market the company's products
through a carefully cultivated system of interrelationships.
139.
The objective of the ____________ form of organizational structure is to substitute
cooperation and coordination, which are in everyone's interest, for strict control and
supervision.
140.
In the future, managers in many ICs can expect to make greater use of the ______ network
structure that breaks down the major functions of the firm into smaller companies
coordinated by a downsized headquarters organization.
141.
Organizations, like people, have ____________. In their youth, they are small, fast growing,
and tend toward the entrepreneurial. However, as they age, they often become big,
complex, and out of touch with their markets.
142.
Every successful company uses __________ to put its plans into effect: evaluate, correct,
and reward.
143.
Companies controlled by other companies through ownership of enough voting stock to
elect majorities on the board of directors are ___________.
144.
Companies controlled by other companies, but where less-than-majority owners may
exercise control by a variety of means, both those involving stock ownership and those
involving nonownership mechanisms are ___________.
145.
Companies in which the parent firm has 100 percent ownership are known as
__________________.
146.
In firms without a global product policy, operations managers in the headquarters typically
have preferred to ______ the product, or at least the production process, in as many
overseas plants as possible.
147.
The less familiar or the more different from home headquarters perceives conditions in the
host country to be, the more likely headquarters is to rely on ______ management.
148.
Pricing that is established for transactions between members of the enterprise is called
__________ pricing.
149.
Even if an IC has less than 50 percent of the voting stock and no voting stock, it can still
exercise ______ over a subsidiary's decisions and activities.
10-102
150.
In addition to market opportunities, the information that the headquarters of an IC needs
to have reported to it by all operating units includes _____________________________.
Essay Questions
10-103
151.
What is organizational design and why is it an important topic for managers of
international companies to understand?
152.
What are the four primary dimensions that need to be considered when designing the
structure of an international company and why are they important?
153.
Describe the global product form, explain why a company might adopt this form, and
identify the disadvantages of this structure?
10-106
154.
Explain why and where decisions are made among ICs and their subsidiary units.
155.
What are the types of information that an international company needs to have reported to
it by its units around the world, and why is each type important for the IC and its control
efforts?
