Deck 10: Marketing Organization,Implementation,and Control

Question 1

The functional structure works best when both products and customers are relatively large and different in nature.

Answer 1

False

Question 2

In decentralized systems,strategic decision making is concentrated at headquarters.

Answer 2

False

Question 3

Organizational matrices vary in terms of their areas of emphasis and the number of dimensions.

Answer 3

True

Question 4

Companies that market consumer products typically have product organizations with low degrees of decentralization.

Question 5

The content of budgets are more qualitative and judgmental in nature than that of long-range plans.

Question 6

Transnational structures need to build economies of scale without being locally adaptive.

Question 7

In virtual centers of excellence,the core individuals live and work around the world and keep in touch through electronic means and meetings.

Question 8

A contributor is a country organization with a distinctive competence,such as product development or regional expertise.

Question 9

Regional integration continues to play a major role in area restructuring.

Question 10

The basic functions of an organization include providing a route and locus of decision making and coordination.

Question 11

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.

Question 12

International divisions best serve firms with numerous products that vary significantly in terms of their environmental sensitivity.

Question 13

Given the size of emerging markets like China and India,a high level of localization precludes economies of scale.

Question 14

Implementers provide the opportunity to capture economies of scale and scope.

Question 15

The budget and planning process is the major control instrument in headquarters-subsidiary relationships.

Question 16

Country organizations should be treated exclusively as a source of demand.

Question 17

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.

Question 18

The choice of bureaucratic controls rather than cultural controls can be justified if the company enjoys a low turnover rate.

Question 19

Companies that market technologically sophisticated products display centralized organizations with worldwide product responsibilities.

Question 20

Global structures have grown out of competitive necessity.

Question 21

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

Question 22

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.

Question 23

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.

Question 24

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

Question 25

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.

Question 26

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.

Question 27

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

Question 28

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.

Question 29

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

Question 30

A(n)_____ structure combines two or more organizational dimensions simultaneously.

A) matrix
B) functional
C) area
D) mixed

Question 31

_____ 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

Question 32

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

Question 33

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

Question 34

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

Question 35

If subsidiaries are granted a high degree of autonomy,the result is termed _____.

A) bureaucratic structures
B) mechanistic organizations
C) decentralization
D) centralization

Question 36

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

Question 37

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

Question 38

_____ 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

Question 39

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

Question 40

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.

Question 41

Describe the different types of centers of excellence.

Question 42

_____ 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

Question 43

_____ 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

Question 44

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

Question 45

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

Question 46

Short-term financial guidelines in such areas as investment,cash,and personnel are called _____.

A) budgets
B) credits
C) plans
D) regulations

Question 47

_____ 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

Question 48

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

Question 49

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.

Question 50

_____ are formalized,long-range programs with more than a one-year horizon.

A) Tasks
B) Objectives
C) Plans
D) Schedules

Question 51

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.

Question 52

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.

Question 53

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

Question 54

Differentiate between bureaucratic and cultural controls.

Question 55

What are the three organizational designs that make up international organizational structures?

Question 56

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.

Question 57

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

Question 58

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