Chapter 17: Organizing and Controlling International Marketing Operations and
Perspectives for the Future
TRUE/FALSE
1. In environments characterized by intense competition, where decisions must be made quickly to
counter competitive moves, a centralized organization would allow for the most immediate reaction.
2. Even in a highly competitive international environment, centralization helps firms avoid duplication
and lower costs.
3. Research and development will benefit from centralization.
4. Companies operating in countries characterized by an unstable political environment need a
decentralized organizational structure.
5. Companies operating in countries where government polices are unstable need a decentralized
organizational structure, which allows them to react quickly.
6. Companies operating in countries that are similar to their home country are likely to use similar
strategies.
7. Companies operating in countries that are similar to their home country are likely to opt for an
organization that would integrate operations between the home and host countries.
8. Companies can use a regional focus in especially if, in the region where they operate, countries share a
language and culture.
9. Companies operating in countries that have ample educated and qualified labor are likely to use a
centralized organizational structure.
10. A firm that considers internationalization a priority is likely to have an organizational structure with an
international division that oversees international operations.
11. Companies are likely to maintain their organizational structure when they go international.
12. A company with an organization structure based on product lines is likely to maintain this structure for
its international operations.
13. An organization structure based on product lines is likely to change its structure for its international
operations.
14. Firms with an international division structure have three main divisions – the domestic division, the
regional division, and the international division.
15. A firm with an international division structure is still primarily focused on domestic operations.
16. In a worldwide regional division structure, subsidiaries report directly to the single division
responsible for operations in the country or geographic region.
17. A particular disadvantage of the worldwide regional division structure is that it cannot respond as
quickly as other organizational structures to country-specific changes.
18. Frito-Lay has a matrix structure.
19. The worldwide regional division structure is helpful for firms that have similar congruent product
lines.
20. According to the text, tech companies are likely to use a product division structure.
21. Increasingly, the worldwide regional division structure is being replaced by the matrix structure.
22. Whirlpool changed from a product division structure to a matrix structure.
23. The matrix structure works especially well for firms that have global brands as well as local brands.
24. Unilever uses a matrix structure.
25. Local units and a regional focus often help to simplify management, communication, and evaluation
processes.
26. In controlling international marketing operations, standards and measures instituted for evaluation
purposes are often not comparable across countries.
27. Subsidiaries often fight to retain autonomy in decision making and performance evaluation, while the
headquarters may resist input from the subsidiaries in the planning and evaluation process.
28. The first step in establishing formal controls involves establishing performance standards.
29. In establishing performance standards, it is recommended that an evaluation occur once every three to
five years.
30. Lessons learned from the company’s experience in other parts of the world are often used to address
discrepancies. However, lessons learned from other companies can often be misleading and should not
be used to address discrepancies.
31. In examining discrepancies between standards and performance, both the local adaptation strategy and
the focus on innovation need to be coordinated with the headquarters.
32. Frequent contact between the home-country headquarters and the regional office leads to inefficiencies
and a lack of empowerment.
33. Rotating managers to different assignments often causes frustration for the manager and does not
allow him/her time to develop regional expertise.
34. Moving expatriates from one subsidiary to another will offer valuable exchange in information to be
used as input into the control function.
35. A third of all people using the Internet are in the United States.
36. The adoption of the Internet will increase in both high-income and in emerging markets.
37. China, Brazil, India, and many countries in Latin America anticipate significant increases in the
adoption of the Internet.
38. Most companies with e-commerce capabilities turn away international orders.
39. International firms must be prepared for rapid new product introductions simultaneously in world
markets, regardless of the markets’ levels of development.
40. Entertainment will cease to be important when communicating with consumers in all retailing
environments: Consumers will expect excellent service instead.
MULTIPLE CHOICE
1. Which of the following is a factor that affects organizational design?
a.
Competitive environment
b.
Environmental stability
c.
Availability of local qualified labor
d.
Each of the above affects organizational design.
2. Under which conditions is a firm likely to use a decentralized organizational structure?
a.
When a firm enters the international market through exporting.
b.
When government policies are unstable.
c.
When the firm operates in an area with a poorly educated work force.
d.
All of the above are true.
3. Which of the following activities do not benefit from centralization?
a.
Finance
b.
Research
c.
Coordination
d.
All of the above benefit from centralization
4. Companies operating in countries that are similar to their home-country are likely to use an
organizational structure that
a.
is centralized.
b.
is decentralized.
c.
integrates operations between the home and host countries.
d.
uses a worldwide regional division structure.
5. Which type of focus is likely to be used when companies operate in countries that share language,
religion or other cultural similarities?
a.
Hierarchical focus
c.
Regional focus
b.
Centralized focus
d.
Product focus
6. A firm that considers internationalization a priority is likely to have an organizational structure with
a.
regional divisions
c.
export divisions
b.
international divisions
d.
product divisions
7. Which type of international organizational structure is a firm likely to use if its domestic operations are
hierarchical and centralized?
a.
Matrix structure
c.
Centralized structure
b.
Decentralized structure
d.
Worldwide regional structure
8. Which format works particularly well for firms that have global brands as well as local brands?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
9. Unilever needs to coordinate marketing activities worldwide involving its global brands and needs to
focus on the local market for its local brands. Which type of organizational structure should it use?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
10. According to the text, which of the following is not a formal structure used by multinational
companies?
a.
International divisions
c.
Worldwide area divisions
b.
Worldwide functional divisions
d.
Worldwide export divisions
11. Firms with an international division structure have two main divisions. What are those divisions?
a.
Export and import
c.
Product and regional
b.
Domestic and international
d.
Functional and regional
12. At which level is the firm with an international division structure typically focused?
a.
Domestic
c.
Global
b.
Regional
d.
Production
13. Under which model do subsidiaries report directly to the single division responsible for operations in
the country or geographic region?
a.
International division structure
c.
Product structure
b.
Worldwide regional division structure
d.
Matrix structure
14. While the ____ structure allows for some duplication of activities and thus might increase costs, this
organization is considered by managers to be very effective in creating competitive advantage for the
firm.
a.
International division
c.
Product
b.
Worldwide regional division
d.
Matrix
15. Which type of structure is better equipped to immediately process and respond to country-specific
information?
a.
International division structure
c.
Worldwide regional division structure
b.
Product division structure
d.
Functional area structure