Question 1

What are the changes necessitating new structural designs for organizations?

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Question 2

What are direct and indirect coordinating mechanisms?

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Question 3

Briefly describe the problems faced by headquarter managers attempting to maintain efficient coordination of activities across countries.

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Question 4

Two major variables in choosing the structure and design of an organization are the opportunities and need for differentiation and integration.

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Question 5

The global functional structure typical of the transnational company creates a complex coordination and control system,as it attempts to combine the capabilities and resources of a multinational corporation.

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Question 6

To address the globalization-localization dilemma,firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability.

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The statement is true as firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability to effectively balance the benefits of globalization and localization.

Question 7

What are the major variables that should be taken into account when designing a firm's organizational structure?

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Question 8

List the typical ways in which firms organize their international activities.

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Question 9

Why is it difficult for managers to evaluate and compare performance across subsidiaries? How can managers overcome these difficulties?

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Question 10

Intel's "Platformisation" refers to customizing a range of chips in a combination suitable for a particular target market,as a response for the increasing need for speedy adaptation to the market.

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Question 11

Briefly describe the characteristics of the global geographic structure.

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Question 12

In general,decentralized decision making is common for functions such as finance,and research and development that are organized for the entire corporation,whereas other functions such as production,marketing,and sales are more appropriately centralized.

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The statement is the opposite of the reality. Decentralized decision making is more appropriate for functions such as production, marketing, and sales, which require local knowledge and adaptation to specific markets, while centralization may be more suitable for functions that need to maintain consistency across the entire corporation, such as finance, human resources, and legal.

Question 13

Variables such as transfer pricing and exchange-rate fluctuations do not influence profitability patterns.

Accepted Answer

Transfer pricing and exchange-rate fluctuations can both have significant impacts on profitability patterns. Transfer pricing refers to the way that companies value and transfer goods and assets between different parts of their organization, which can affect the profits of each unit. Exchange-rate fluctuations can impact the costs of inputs and the prices of outputs for companies that operate internationally, which can also affect profitability.

Question 14

Describe the organizational structure and characteristics of transnational corporations.

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Question 15

The organizational structure for global e-businesses,in particular for physical products,typically involves a network of virtual e-exchanges and "bricks and mortar" services,whether those services are in-house or outsourced.

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This statement is true. Global e-businesses that deal with physical products typically have an organizational structure that includes a network of virtual e-exchanges and physical services, which can be either in-house or outsourced.

Question 16

Why are global companies increasingly abandoning rigid structures? How are they adapting to the changing global environment?

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Question 17

Direct mechanisms that provide the basis for the overall guidance and management of foreign operations include the design of appropriate structures and the use of effective staffing practices.

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The design of appropriate structures and the use of effective staffing practices are direct mechanisms that provide the basis for the overall guidance and management of foreign operations.

Question 18

What are the major challenges presented by information systems in less-developed countries?

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Question 19

The MIS adequacy in foreign affiliates is a sticky problem for headquarters managers in their attempt to maintain efficient coordination of activities and consolidation of results.

Accepted Answer

This statement is true. Maintaining adequate management information systems in foreign affiliates can be challenging for headquarters managers as they strive to ensure effective coordination and consolidation of results across the organization.

Question 20

By transitioning to formats such as interorganizational networks,companies are abandoning traditional structures and switching to more rigid organizational structures.

Accepted Answer

The statement is false. Companies are abandoning traditional structures and transitioning to more flexible and collaborative organizational structures, such as interorganizational networks.

Quiz 8: Organization Structure and Control Systems