16. Which structure allows for some duplication of activities, which increases costs, but is still considered
to be very effective?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Functional area structure
17. This structure allows for duplication and might increase costs, but it, nevertheless, is considered
effective in creating competitive advantage for the firm.
a.
Product division structure
c.
Worldwide division structure
b.
International division structure
d.
None of the above
18. Which type of organizational structure is used by Frito-Lay?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
19. Which type of organizational structure is helpful for firms that have similar congruent product lines?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
20. Which type of organizational structure is helpful for services?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
21. Which type of organizational structure does the Guggenheim museum use?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
22. Which organizational structure is increasingly being replaced by the matrix structure?
a.
Functional division structure
c.
Worldwide regional division structure
b.
International division structure
d.
Product division structure
23. Whirlpool has adopted which type of organizational structure?
a.
International division structure
c.
Product division structure
b.
Worldwide regional division structure
d.
Matrix structure
24. The ____ structure works well for firms that have global brands, as well as for local brands.
a.
international division
c.
matrix
b.
product division
d.
multinational division
25. In a ____ structure, two dimensions are integrated such that each operational unit reports to both
region/country managers and product managers.
a.
region division structure
c.
international division structure
b.
matrix structure
d.
none of the above
26. Controlling international operations is a complex task. Which of the following actually helps to simply
the process?
a.
Using local units and a regional focus.
b.
Using different standards and measures in different countries for control purposes.
c.
Increasing the distance between headquarters and regional offices.
d.
None of the above.
27. What is the first step in establishing formal controls?
a.
Performance standards need to be established.
b.
Performance needs to be measured.
c.
Frequent contact between the home-country and regional offices needs to be established.
d.
Managers should be rotated to different assignments.
28. Which of the following is an example of a standard that may be used to measure performance?
a.
Sales
c.
Market share
b.
Profit
d.
All of the above
29. Which of the following is not an informal control?
a.
Addressing the discrepancy between last year’s sales and current sales
b.
Rotating managers to different assignments
c.
Training employees in a culture that is consistent with company goals
d.
Establishing frequent contact between the headquarters and regional offices
30. Which statement regarding the rotating of managers is true?
a.
Rotating managers to different assignments creates “brain drain” and should be avoided.
b.
Rotating managers to different areas makes it more likely that the manager will become a
competitor.
c.
Rotating managers to different assignments helps the company obtain the maximum
benefit from international experience.
d.
Rotating managers to different assignments is an effective formal control.
31. The adoption of the Internet will continue to be rapid in
a.
The United States
c.
China
b.
India
d.
All of the above
32. Companies with e-commerce capabilities turn away international orders
a.
Because of difficulty handling import and tax regulations
b.
Because of language barriers
c.
Because of language barriers
d.
all of the above
33. About ____ percent of companies with e-commerce capabilities turn away international orders because
they do not have the processes in place to fill them.
a.
90%
c.
50%
b.
10%
d.
80%
34. Which of the following is true about the future of distribution? Companies will
a.
Continue to adopt just-in-time inventory systems
b.
Coordinate inventory systems with suppliers
c.
Coordinate inventory systems with clients
d.
All of the above are true
35. Which of the following is a trend for new products?
a.
Shorter product life cycle
c.
Fewer competing products
b.
More inventions
d.
All of the above
36. New products will be introduced worldwide
a.
Only in high-income countries.
b.
Only in emerging markets.
c.
Only in developing countries.
d.
In all markets regardless of level of development.
COMPLETION
1. Firms need to consider organizational designs that fit with their external environment and with
company characteristics and ____________________.
2. In environments characterized by intense competition, where decisions must be made quickly to
counter competitive moves, a(n) ____________________ organization would allow for the most
immediate reaction.
3. Countries characterized by an unstable ____________________ environment need to be able to take
immediate action to adapt to the new environment and need an organizational structure that allows
them to react quickly.
4. Companies can organize their operations with a(n) ____________________ focus in countries that
share a language, religion, or that share other cultural similarities.
5. Companies operating in countries that have ample educated and qualified labor will have
organizational structures that all for more ____________________ control.
6. Companies operating in countries that are ____________________ their home country are likely to
opt for an organization that would integrate operations between the home and host countries.
7. A firm that considers internationalization a priority is likely to have an organizational structure with
_________________________ in charge of particular countries.
8. An organization that is ____________________ and centralized is likely to have a centralized
international organization.
9. When firms become involved in international business by exporting products overseas, they typically
assign responsibility for all international operations to a(n) _________________________.
10. A firm with an international division structure is primarily focused on ____________________
operations.
11. Under the ______________________________ structure, subsidiaries report directly to the single
division responsible for operations in the country or geographic region.
12. The ______________________________ structure is helpful for firms that have similar congruent
product lines, such as Frito-Lay, or for services.
13. The _________________________ structure is increasingly being replaced by the matrix structure.
14. The ____________________ structure takes into account the multiple dimensions involved in doing
business internationally such as functional, product, and region/country dimensions.
15. In a ____________________ structure, two dimensions are integrated such that each operational unit
reports to both region/country managers and product managers.
16. ____________________ are necessary to ensure that company international operations are in line with
company goals and objectives.
17. The first step in establishing formal controls involves establishing _________________________.
18. In establishing performance standards, the evaluation must include a continuous assessment of
____________________ intensity.
19. Rotating managers to different assignments is an example of a(n) ____________________ control.
ESSAY
1. How do factors in the firm’s environment affect its organizational design?
2. Discuss the advantages and disadvantages of the worldwide regional division structure.
3. Discuss the international factors that add to the complexity of the marketing control function
4. Describe the informal controls that an international company can use.
5. Describe projected changes in the 4p’s of marketing – refer to the “International Marketing: Future
Perspectives” section.