Global Marketing Management, 8e (Keegan)
Chapter 14 Global Organization and Leadership: Managing the Global Marketing Effort
1) Global business leaders must be capable of articulating a coherent global vision and strategy
that integrates local responsiveness, global efficiency and leverage.
2) The challenge of leaders is to direct the efforts and creativity of everyone in the company
toward personal goals.
3) The use of self-directed teams to respond to competitive advantage is decreasing due to better
communications through technology.
4) One critical value vital to global companies today is to have the proper mind set for both
leadership and the organization.
5) For organizational effectiveness, the composition of the board of directors of an organization
should have a majority of home-country nationals.
6) The choice of location for board meetings is not critical.
7) A key issue in global organization is how to achieve balance between autonomy and
integration.
8) A geographically dispersed company cannot limit its knowledge to product, function, and the
home territory.
9) As a company’s international business grows, the complexity of coordinating and directing
this activity extends beyond the scope of a single person.
10) In a geographic structure, the corporate headquarters retains responsibility for worldwide
planning and control.
11) A country subsidiary is a major structural device employed today to enable a corporation to
acquire geographic knowledge.
12) Product managers with a worldwide responsibility typically achieve competence in technical
knowledge and know-how on a global basis.
13) As foreign product diversification increases, the likelihood that product divisions will
operate on a worldwide basis decreases.
14) Today, successful firms are sourcing product from emerging markets and also looking for
customers and new business and product innovations to use globally.
15) Planning, control and budgeting are three independent functions of a market audit.
16) Most companies typically ignore the previous year’s actual performance and concentrate on
industry averages when evaluating performance.
17) A major responsibility of staff specialists is to ensure that lessons learned in more advanced
markets are applied to the management of their products in smaller, less developed markets.
18) A marketing plan or a budget must be prepared with respect to the level of competition in a
target market.
19) The more entrenched the market competition, the easier it is to achieve market share.
20) Because market share is hard to obtain, it should not be considered in a marketing audit.
21) Which of the following characteristics of a great company distinguishes it from an ordinary
company?
A) It keeps its purpose and mission limited.
B) It views itself only as a money-making machine.
C) It sees itself as a key social institution.
D) It always adapts a product-centric marketing approach.
22) Which of the following is most likely a key organizational design characteristic suitable for
global marketing?
A) a flat organizational structure
B) a top-bottom one-way communication hierarchy
C) a multilayered internal structure
D) a hierarchy with a strong control over subordinates
23) Which of the following is a factor contributing to the establishment of an international
division for an organization?
A) the need for foreign subsidiaries to be bound within the guidelines of the headquarters
B) the need for a single organization unit with complete authority to take decisions
C) the top management’s commitment to head global operations by a single executive
D) the top management’s decisions to only respond to situations in the global market
24) Which of the following statements is true about regional management centers?
A) The scale of regional management must exceed the scale of operations in the region.
B) These centers reduce the number of management levels within an organization.
C) The center can coordinate within a region on pricing and sourcing.
D) Executives in regional centers do not have any role in the planning and control of each
country’s operations.
25) Under which of the following conditions will an international organization move toward an
integrated structure?
A) when it has a limited percentage of its total business in foreign countries
B) when it has worldwide product diversity and a large-scale foreign business
C) when it has low product diversity contributing a large portion of its foreign business
D) when it has a limited number of product divisions in the foreign countries
26) Which of the following is a distinctive characteristic of multidivisional structured
organizations in the United States?
A) These organizations have a close relationship with the different organizations part of the
supply chain.
B) Executives at the corporate headquarters are committed to single business units.
C) Corporate headquarters are least concerned about strategic planning and the allocation of
resources among business units.
D) Profit responsibility for operating decisions is assigned to managers of individual business
units.
27) According to Bartlett, which of the following was the first stage of development for
successful organizations that avoided the myth of the ideal organizational structure?
A) transitioning from ethnocentric and polycentric to geocentric orientation
B) building channels of communication between managers in various parts of the world
C) developing organization norms and values to support decision making
D) moving from international division to a worldwide product division
28) Which of the following is a typical problem caused by global markets to managers
responsible for marketing control?
A) Differences in market practices create communication problems.
B) Intermediaries reduce the number of levels in the control system.
C) Managers typically lose marketing control to the executives in global headquarters.
D) The size of the area under a manager’s control reduces significantly.
29) ________ is defined as the process by which managers ensure that resources are used
effectively and efficiently in the accomplishment of organizational objectives.
A) Review
B) Monitor
C) Control
D) Accommodation
30) The ________ structure involves the assignment of operational responsibility of the different
areas of the world to line managers.
A) ethnocentric
B) geographic
C) integrated
D) rationalistic
31) Which of the following statements is true of the geographic structure?
A) The geographic structure assigns operational responsibility for geographic areas of the world
to the corporate headquarters.
B) The most common appearance of this structure is in companies with closely related product
lines that are sold in similar end-use markets around the world.
C) The line managers of the regional centers are given responsibility for worldwide planning and
control.
D) Each area of the world–including the “home” or base market–is considered organizationally
different and unique.
32) Which of the following statements is true of a full marketing audit?
A) It can only be conducted by the company’s own finance team once a year.
B) It utilizes a set of random questions.
C) It is formal and systematic.
D) It is only conducted once in 5 years.
33) Which of the following is typically the first step in conducting an audit?
A) creating a report
B) presenting the findings
C) analyzing information
D) gathering data
34) ________ planning refers to the selection of opportunities defined in terms of products and
markets, and the commitment of resources, both human and financial, to achieve these
objectives.
A) Strategic
B) Operational
C) Functional
D) Accommodative
35) Out of the different types of mechanisms that are available to help headquarters acquire
control over a subsidiary, which of the following helps shift the perception of self-interest from
subsidiary autonomy to global business performance?
A) data management mechanisms
B) managers’ management mechanisms
C) conflict resolution mechanisms
D) session management mechanism
36) Which of the following is essential when a company management decides to develop a
global strategy?
A) creating autonomous subsidiaries limiting the influence of the headquarters
B) changing the balance of power from the headquarters to the global subsidiaries
C) restricting subsidiaries from providing inputs into the strategic planning process
D) shifting the control of the subsidiary operations from subsidiary to headquarters
37) How does competition influence market planning and budgeting?
A) Market planning and budgeting must be prepared in light of the competitive level in the
market.
B) Planning and budgeting is not affected for companies with minor positions in foreign markets
competing against entrenched companies in the same market.
C) Competitive moves are not important as a variable in international market planning and
budgeting.
D) The more competitive a target market is, the easier it is to prepare market planning and
budgeting.
38) Which of the following statements is true about the indicative planning method?
A) Subsidiaries are in no way bound by the guidance provided by the headquarters.
B) The potential of a target market is estimated completely by an organization’s headquarters.
C) An organization’s headquarters does the planning and budgeting for the subsidiaries.
D) Planning is done only using the global data and not market specific information.
39) Which of the following is most likely a reason for the success of the indicative planning
method?
A) combining a global perspective with country-specific marketing plans
B) the need for the headquarters to understand a target market in depth
C) the restriction on operating subsidiaries to follow global guidelines
D) using standard procedures for different target markets
40) Which of the following provides a comparison of a company’s performance with that of other
competitors within the market?
A) a marketing audit
B) a global marketing audit
C) a measure of market share
D) a company’s hierarchical flatness
41) Which of the following is an informal control method in global marketing?
A) transfer of people
B) measuring share of market
C) indicative planning method
D) marketing audit
42) What is the purpose of a global marketing audit?
43) Explain any two factors that influence marketing plans and budgets.