Chapter 10: Marketing Organization, Implementation, and Control
TRUE/FALSE
1. The basic functions of an organization include providing a route and locus of decision making and
coordination.
2. The share of international operations in the sales and profits of a corporation is so huge in the initial
stages of international involvement that organizational adjustment takes place immediately.
3. International divisions best serve firms with numerous products that vary significantly in terms of their
environmental sensitivity.
4. Global structures have grown out of competitive necessity.
5. An approach to organizational structure that gives worldwide responsibility to strategic business units
for the marketing of their product lines is known as product differentiation.
6. Regional integration continues to play a major role in area restructuring.
7. The functional structure works best when both products and customers are relatively large and
different in nature.
8. Organizational matrices vary in terms of their areas of emphasis and the number of dimensions.
9. Transnational structures need to build economies of scale without being locally adaptive.
10. Given the size of emerging markets like China and India, a high level of localization precludes
economies of scale.
11. In decentralized systems, strategic decision making is concentrated at headquarters.
12. Companies that market consumer products typically have product organizations with low degrees of
decentralization.
13. Companies that market technologically sophisticated products display centralized organizations with
worldwide product responsibilities.
14. In virtual centers of excellence, the core individuals live and work around the world and keep in touch
through electronic means and meetings.
15. Country organizations should be treated exclusively as a source of demand.
16. Implementers provide the opportunity to capture economies of scale and scope.
17. A contributor is a country organization with a distinctive competence, such as product development or
regional expertise.
18. The budget and planning process is the major control instrument in headquarters-subsidiary
relationships.
19. The content of budgets are more qualitative and judgmental in nature than that of long-range plans.
20. The choice of bureaucratic controls rather than cultural controls can be justified if the company enjoys
a low turnover rate.
MULTIPLE CHOICE
1. Which of the following is true about the early stages of international involvement in firms with little or
no formal organization?
a.
All transactions are subject to a single standardized procedure.
b.
Domestic operations assume responsibility for international marketing activities.
c.
Consolidation of information and authority over international sales is undertaken.
d.
The share of international operations in the sales of the corporation is initially high.
2. The _____ centralizes in one entity, with or without separate incorporation, and accepts all of the
responsibility for worldwide activities.
a.
export department structure
b.
global division
c.
international division
d.
hybrid structure
3. Which of the following is true about international divisions?
a.
The international division centralizes in several entities, without separate incorporation,
and accepts all of the responsibility for international activities.
b.
To avoid situations in which the international division is at a disadvantage in competing
for production and related services, corporations need to coordinate between domestic and
international operations.
c.
The international division best serves firms with several products that vary significantly in
terms of their environmental sensitivity, and when international sales and profits are quite
significant compared with those of the domestic divisions.
d.
The international division concentrates solely on manufacturing functions in order to take
advantage of the economies of scale.
4. Which of the following global structures improves cost efficiency through centralization of
manufacturing facilities?
a.
Global functional structure
b.
Global customer structure
c.
Global product structure
d.
Global mixed structure
5. Which of the following is an approach to organizational structure that gives worldwide responsibility
to strategic business units for marketing their product lines?
a.
Area structure
b.
Functional structure
c.
Mixed structure
d.
Product structure
6. All-Techno Inc., a leading Florida-based software firm, has branches all over the world. Its operations
are mainly divided into three regions comprising Europe, Asia, and the U.S. These divisions are
responsible for all the manufacturing and marketing activities in their respective areas. What kind of
organizational structure is being adopted by All-Techno?
a.
Product structure
b.
Functional structure
c.
Area structure
d.
Customer structure
7. If market conditions with respect to product acceptance and operating conditions vary dramatically,
the _____ approach is the one to choose.
a.
functional
b.
customer
c.
product
d.
area
8. An approach to organizational structure that is based on which consumer groups are served is referred
to as a(n) _____.
a.
functional structure
b.
area structure
c.
customer structure
d.
product structure
9. A(n) _____ structure combines two or more organizational dimensions simultaneously.
a.
matrix
b.
functional
c.
area
d.
mixed
10. Which approach to organizational structure refers to a business driven by a worldwide business unit
and implemented by a geographic unit?
a.
Mixed structure
b.
Matrix structure
c.
Functional structure
d.
Shell structure
11. Which of the following best describes matrix structures?
a.
It is a structure in which product divisions are responsible for all manufacturing and
marketing worldwide.
b.
It is a structure in which geographic divisions are responsible for all manufacturing and
marketing in their respective areas.
c.
It is a structure driven by a worldwide business unit and implemented by a geographic
unit.
d.
It is a structure that combines two or more organizational dimensions simultaneously.
12. If subsidiaries are granted a high degree of autonomy, the result is termed _____.
a.
bureaucratic structures
b.
mechanistic organizations
c.
decentralization
d.
centralization
13. A firm is said to be _____ when it maintains tight controls and its strategic decision making is
concentrated at headquarters.
a.
glocalized
b.
cross-subsidized
c.
centralized
d.
decentralized
14. Allowing maximum flexibility at the country-market level takes advantage of the fact that subsidiary
management:
a.
will eventually move into a black hole situation.
b.
knows its market and can react to changes quickly.
c.
can reinvent solutions that have already been discovered.
d.
will eventually let headquarters make all decisions.
15. Marketers faced with global competitive threats and opportunities have adopted global strategy
formulation which requires some degree of centralization. This has resulted in _____.
a.
coordinated decentralization
b.
centralized coordination
c.
national autonomy
d.
central control
16. The organizational structure and locus of decision making in multinational corporations are
determined by a number of factors. Which of the following is NOT one of those factors?
a.
The degree of involvement in international operations
b.
The demographic characteristics of customers in each region
c.
The business in which the firm is engaged
d.
The human resource capability of the firm
17. _____ refers to the organizational approach that provides clear global strategic direction along with the
flexibility to adapt to local opportunities and requirements.
a.
Globalization
b.
Glocalization
c.
Decentralization
d.
Segmentation
18. Companies that have adopted the glocalization approach incorporate all of the following dimensions
EXCEPT:
a.
the development and communication of a clear corporate vision.
b.
the effective management of human resource tools to broaden individual perspectives.
c.
the integration of individual thinking and activities into the broad corporate agenda.
d.
the policy of reinventing solutions that have already been discovered.
19. _____ centers of excellence are individuals who are internationally recognized for their expertise in a
function or an area.
a.
Concentrated
b.
Strategic
c.
Charismatic
d.
Virtual
20. Which of the following is true about centers of excellence?
a.
Charismatic centers of excellence aim to build through an expert a capability in the firm
that has been lacking.
b.
Focused centers of excellence consider all areas of expertise and give equal importance to
each one of them.
c.
In virtual centers of excellence, the core individuals live and work near the firm, and avoid
all forms of electronic means to communicate.
d.
In virtual centers of excellence, all forms of knowledge are kept confidential within the
firm.
21. Which of the following statements is true about promoting global internal cooperation?
a.
Global business entities believe that wherever the individual participants may be, relying
solely on technology brings about the desired results.
b.
Global business entities require that intellectual capital be kept confidential within the
organization.
c.
To promote internal cooperation in the case of a new program, final direction comes from
local-country managers who also develop the global strategy.
d.
A method to promote internal cooperation for global strategy implementation is the use of
international teams or councils.
22. _____ refer(s) to integrating a company’s information assets into a single, globally accessible system
that allows more efficient collaboration and the formation of virtual teams.
a.
Intranets
b.
E-commerce
c.
E-info system
d.
Internet
23. Which of the following is true of intranets?
a.
It enhances knowledge capital, which can be constantly updated and upgraded.
b.
There is a time lag between an idea and the information needed to assess and implement it
c.
It provides teamwork-enabling online communication at high costs.
d.
It is low on technological feasibility which allows managers to make to-the-minute
decisions anywhere in the world.
24. The role of a(n) _____ can be played by a highly competent national subsidiary located in a
strategically critical market.
a.
contributor
b.
black hole
c.
implementer
d.
strategic leader
25. CruzAuto Inc., a leading American automobile manufacturer, has a joint venture with an Italian
automobile firm to manufacture automobiles which are designed specifically for the Italian market.
The Italian management team therefore plays the role of a(n) _____ in CruzAuto’s global planning.
a.
implementer
b.
strategic leader
c.
contributor
d.
dodger
26. A _____ is a country organization with a distinctive competence, such as product development or
regional expertise.
a.
shell corporation
b.
contributor
c.
contender
d.
dodger
27. A country organization that exists in a smaller, less-established markets in which corporate
commitment to market development is lower is called a(n) _____.
a.
contributor
b.
strategic leader
c.
shell corporation
d.
implementer
28. TechPro Inc., a leading laptop manufacturing company, manufactures all of its products at its branch
in San Diego. It has other branches located in India, China, and Singapore where corporate
commitment to market development is lower. TechPro configures the laptops before selling them to
customers in these regions. Which of the following roles do the country organizations in these regions
play?
a.
Implementers
b.
Contributors
c.
Strategic leaders
d.
Dodgers
29. Which of the following is true about the role of country organizations?
a.
The role of strategic leader can be played by a highly competent national subsidiary
located in a minor, less relevant market.
b.
Implementers provide the opportunity to capture economies of scale and scope that are the
basis of a global strategy.
c.
International marketers prefer to be in black hole situations.
d.
A contributor is a country organization with ordinary competencies similar to the other
country organizations.
30. Which of the following is a “black hole” situation?
a.
A situation in which international direct investors are accused of draining resources from
their host countries
b.
An organization with tight controls and whose strategic decision making is concentrated at
headquarters
c.
A situation in international marketing when the market has been read incorrectly
d.
A situation where the government of a country permits all the activities of a foreign
company in that country
31. _____ controls consist of a limited and explicit set of regulations and rules that outline desired levels
of performance.
a.
Bureaucratic
b.
Contributor
c.
Implementer
d.
Cultural
32. _____ are less formal than other controls and are the result of shared beliefs and expectations among
the members of an organization.
a.
Bureaucratic controls
b.
Centralized organizations
c.
Cultural controls
d.
Differentiation strategies
33. Short-term financial guidelines in such areas as investment, cash, and personnel are called _____.
a.
budgets
b.
credits
c.
plans
d.
regulations
34. _____ are formalized, long-range programs with more than a one-year horizon.
a.
Tasks
b.
Objectives
c.
Plans
d.
Schedules
35. Which of the following is true about controls?
a.
The content of long-range plans is more qualitative and judgmental in nature than that of
budgets.
b.
Bureaucratic controls are less formal than other controls and are the result of shared
beliefs and expectations among the members of an organization.
c.
The choice of bureaucratic controls rather than cultural controls can be justified if the
company enjoys a low turnover rate.
d.
Cultural controls consist of a limited and explicit set of regulations and rules that outline
desired levels of performance.
ESSAY
1. What are the three organizational designs that make up international organizational structures?
ANS:
2. Describe the different types of centers of excellence.
3. Differentiate between bureaucratic and cultural controls.
ANS:
