Deck 10: Strategizing, Structuring, and Learning

Question 1

Localization strategy is an extension of the home replication strategy.

Answer 1

True

Question 2

An international division serves as a means of coordination with the rest of the firm.

Answer 2

False

Question 3

Knowledge management not only depends on IT, but also on informal social relationships within the MNE.

Answer 3

True

Question 4

The Porter five forces are not helpful in understanding MNE structure.

Question 5

The "not invented here" syndrome causes managers to accept ideas invented elsewhere.

Question 6

The text recommended that firms avoid simplifying both product and geographic scope by downsizing and downscoping.

Question 7

In a transnational MNE, the role of subsidiaries is to adapt and leverage parent company competencies.

Question 8

Home replication strategy emphasizes the home country replication of international based competencies.

Question 9

No one argues that knowledge management is the defining feature of MNEs.

Question 10

Customer-focused dimensions cut across all three existing mainstream dimensions.

Question 11

It is obviously a lot easier to imitate an intangible philosophy or mentality than to imitate a tangible structure.

Question 12

Global product division structure is the same as the geographic area structure.

Question 13

Transnational strategy supposedly is a trade off between being cost efficient and locally responsive but is really locally responsive.

Question 14

Transnational strategy aims to capture "the best of both worlds" by endeavoring to be both cost efficient and locally responsive.

Question 15

MNEs often must rely on a great deal of informal integrating mechanisms.

Question 16

Overall, the micro, informal interpersonal relationships among managers of various units may create a micro-macro link.

Question 17

Strategy drives structure: a misfit, such as combining a global strategy with a geographic area structure, may have grave performance consequences.

Question 18

Many MNEs have phased out the geographical area structure.

Question 19

European MNE's are more likely than Japanese MNE to appoint host-country or third country nationals as head of a foreign subsidiary.

Question 20

It is hard to distinguish between subsidiary initiative and empire building.

Question 21

In which of the following structures are foreign subsidiary managers not given sufficient voice relative to domestic managers?
a. International division structure.
b. Geographic area structure.
c. Global product division structure.
d. Global matrix structure.
e. Flexible matrix structure.

Question 22

The most appropriate structure for a multidomestic strategy is a:
a. International division structure.
b. Geographic area structure.
c. Global product division structure.
d. Global matrix structure.
e. Flexible matrix structure.

Question 23

Pressures for cost reductions and local responsiveness include:
a. The framework of how to simultaneously deal with these two sets of pressures.
b. Host country demands and expectations.
c. Being locally responsive makes local customers and governments happy but increase costs.
d. All of the above.
e. None of the above.

Question 24

Which of the following is a key idea regarding the reciprocal relationship between strategies and structures within MNEs?
a. The fit between strategies and structures is crucial.
b. The relationship is two way.
c. Strategies and structures are not static.
d. All of the above.
e. A good strategy cancels the effect of a bad structure.

Question 25

Four strategic choices for MNEs do not include:
a. Home replication.
b. Domestic.
c. Multidomestic.
d. Transnational.
e. Global.

Question 26

This structure is commonly used in professional service firms:
a. Global account structure.
b. An industry sector structure.
c. Solutions-based structure.
d. All of the above.
e. None of the above.

Question 27

Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?
a. Better motivates subsidiary-level managers and employees through empowerment.
b. Reduces corporate level overload of responsibilities.
c. Better motivates subsidiary level managers.
d. Sufficient power for corporate-level managers to initiate necessary actions.
e. All of the above.

Question 28

The structure that is typically set up when firms initially expand abroad is a:
a. International division structure.
b. Geographic area structure.
c. Global product division structure.
d. Global matrix structure.
e. Flexible matrix structure.

Question 29

Unique to international competition are the pressures for local responsiveness, which are reflected in:
a. Consumer preferences.
b. Distribution channels.
c. Host country demands.
d. A through C above.
e. Shareholder demands.

Question 30

Multidomestic strategy involves all of the following except:
a. Focuses on a number of foreign countries/regions.
b. Each foreign country is regarded as a stand-alone "domestic" market.
c. Is effective when there are clear differences among national and regional markets.
d. A multidomestic strategy has high costs.
e. Global standardization strategy is the same as a multidomestic strategy.

Question 31

This structure is often used to supply customers often other MNEs) in a coordinated and consistent way across various countries.
a. Global account structure.
b. An industry sector structure.
c. Solutions-based structure.
d. All of the above.
e. None of the above.

Question 32

Which of the following is not true of the global matrix structure?
a. Is often used to alleviate the disadvantages associated with the geographic area structure.
b. Is often used to alleviate the disadvantages associated with the global product division structures.
c. Often used for sharing and coordinating responsibilities between product divisions and geographic areas.
d. This structure benefits front-line managers who now have only one boss - either a country manager or a product division manager.
e. The matrix structure may add layers of management.

Question 33

Which of the following is a solution rather than a problem in knowledge management?
a. Open innovation.
b. Knowledge leakage.
c. Not invented here syndrome.
d. All of the above.
e. None of the above.

Question 34

Which of the following is not an argument in favor of centralization in knowledge management but instead is an argument in favor of decentralization?
a. Capability to facilitate corporate-wide coordination.
b. Consistency in decision-making.
c. Permits greater speed, flexibility, and innovation.
d. Sufficient power for corporate-level managers to initiate necessary actions.
e. None of the above.

Question 35

Which of the following is a customer-focused dimension?
a. Global account structure.
b. An industry sector structure.
c. Solutions-based structure.
d. All of the above.
e. None of the above.

Question 36

Which are not true in regards to institution-based considerations?
a. Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments.
b. Host-country governments often encourage, or coerce MNEs into undertaking certain activities.
c. Strategists weigh the informal, backlash against activities which result in domestic job losses.
d. Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks.
e. To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary.

Question 37

Which is true of globalized R&D?
a. Is often known as innovation-avoidance expense.
b. One way to access such a high technology and research-rich cluster is to avoid FDI.
c. R&D work performed by different locations and teams around the world virtually guarantees failure.
d. For large firms, there are actually diminishing returns for R&D.
e. Global virtual teams, which do not meet face to face, may overcome communication and relationship barriers.

Question 38

Which is not one of the suggestions for international managersthat can be drawn from this chapter?
a. Create a common structure for all MNEs.
b. Understand the nature and evolution of your industry.
c. Actively develop learning and innovation capabilities.
d. Masterthe external rules of the game.
e. Understand and be prepared to change the internal rules of the game.

Question 39

The type of knowledge that is codifiable that is, it can be written down and transferred without losing much of its richness) is called:
a. Explicit.
b. Implicit.
c. Tacit.
d. Lucid.
e. Clear.

Question 40

Knowledge management uses "centers of excellence" in which type of MNE?
a. Home replication.
b. Local multidomestic).
c. Global.
d. Transnational.
e. All of the above.

Question 41

Mega Global Corporation has centralized all of its global operations. The firm's manager in Lower Slobovia would like to see more decentralization. Her complaint: "We are the experts on what needs to be done in this country but we have to get approval from people who have no idea as to what is going on here. That makes neither sense nor dollars." Evaluate her statement.

Question 42

Suppose you are the leader of a nation which currently has few capabilities other than a well-educated populace that could contribute to economic growth. However, you think you have a bright idea. You are going to encourage MNEs from around the world to locate their headquarters in your country. What might attract them and how might that pay off if you are successful?

Question 43

Normally when a firm first expands overseas, it may use an international division and later use a different organizational structure. Under what circumstances might such a firm wish to shift back to the use of an international division?

Question 44

To what extent should a firm be committed to a particular strategy versus making frequent changes in the strategy? If a strategy is likely to be changed, what is the point in having one?

Question 45

Global R&D has pros and cons for the firm that uses that approach. However, suppose you are the leader of the country where that firm is based. How might you view having R&D being conducted by a global team in a matter that is vital to the nation's economic health/and or security?