Deck 7: Functional Integration

Question 1

Businesses are organized around functions as a way to benefit from specialization.

Answer 1

True

Question 2

Outsourcing is a major function of international companies.

Answer 2

False

Question 3

Most of the strategic decisions of companies are centered on the various functions.

Answer 3

True

Question 4

By coordinating and integrating the various functions companies are able to improve their competitive advantage.

Question 5

The best way to link geographically dispersed international operations is by hiring more foreign born employees.

Question 6

Scheduling and layout decisions are made under the administrative function.

Question 7

Investment decision is part of the finance function.

Question 8

One of the key marketing functions is to choose the target market.

Question 9

Customer relations management attempts to attract customers by offering discounts and rebates.

Question 10

Human resources management recognizes the importance of offering bonuses to all employees.

Question 11

The key resource of a company is its people.

Question 12

Expatriates are employees who are recruited from colleges and universities.

Question 13

Management information system is an assembly of components that is designed to collect retrieve, process, store, and disseminate information.

Question 14

Product innovations are mostly a result of luck.

Question 15

A bulk of the R&D spending in the United States comes from the government.

Question 16

Functional integration implies that

A) Marketing and other functions require equal funding allocations
B) Marketing strategies are developed in conjunction with and through the coordination of other functions
C) Marketing and selling functions have to be coordinated
D) Production and operations management requires the assistance of human resource department

Question 17

In a highly competitive global economy it is critical that international companies

A) Emphasize interdependent customer groupings to achieve functional integration
B) Direct their efforts to be in many international markets
C) Establish large regional bases to gain competitive advantage
D) None of the above

Question 18

Research has shown that some functions are naturally linked to one another and these are

A) Marketing, selling, and administration
B) Finance, personnel, and MIS
C) R&D, manufacturing, and marketing
D) Human resources, payroll, and outsourcing

Question 19

International functional coordination results in

A) Fewer subsidiary operations
B) Fewer expatriate personnel
C) Improved geographic planning
D) Improved linkages among geographically dispersed units and their varied functions

Question 20

Some of the activities associated with production and operations management include

A) Sourcing of materials, design and technology, and quality control
B) Logistics, investment decisions, and preparing income statement
C) Recruiting, training, and assigning staff to various subsidiaries
D) Research, data analysis, and strategic planning

Question 21

A company's finance department handles the following activities

A) Financing or sourcing of funds
B) Investments or allocation of funds
C) Working capital management or the best possible mix of current assets
D) All of the above

Question 22

The focus of customer relations management is

A) Manage the relationship between customers and retailers
B) Manage the relationship between the company and its customers
C) Manage the relationship between the company and its suppliers
D) Manage the relationship between the company and its banks

Question 23

The following activities are associated with human resource management

A) Administration and purchasing
B) Budgeting and planning
C) Recruiting and training
D) Planning and decision making

Question 24

Expatriates are assigned to overseas operations in order to

A) To safeguard against theft of intellectual property rights
B) To learn a new language
C) To understand and learn about another culture
D) As an incentive to remain within the company

Question 25

Accounting systems are necessary because

A) They provide training for accounting graduates to pass the CPA exam
B) They provide reasonable judgments of a company's financial health
C) They prepare the ledger accounts
D) They prepare the budgets

Question 26

The various components of management information systems include

A) Computer hardware and software
B) Telecommunication systems
C) Statistical packages
D) All of the above

Question 27

The following countries invest heavily in R&D

A) France, Germany, and Italy
B) Cuba, North Korea, and Russia
C) China, Japan, and the United States
D) Brazil, India, and Singapore

Question 28

Expenditures in research and development by international companies result in

A) Sending telecommunication satellites to orbit the earth
B) Preparing for travel to the outer galaxies
C) Product and process innovations
D) Improved training and development of personnel

Question 29

The following international companies are known for their product and process innovations

A) General Electric and Toyota
B) Reliance Corporation and the Tata group of companies
C) Citigroup and JP Morgan Chase
D) Carrefour and Wal-Mart

Question 30

For international companies functional integration is essential for

A) Improving their HRM functions
B) Gaining competitive advantage
C) Developing an efficient MIS system
D) For an effective outsourcing strategy

Question 31

Why are international companies organized into functions?

Question 32

List the key functions in an international company.

Question 33

How are the various functions linked?

Question 34

Why is functional integration and coordination important for companies to be successful?

Question 35

Which of the eight functions would be most essential for a small exporting company?