Question 1

The main advantages of ________________ structures are a global vision and the ability to leverage resources across regions.
A) product-based
B) geographic-based
C) functional-based
D) none of the above

Accepted Answer

A

Question 2

What provides the appropriate linkage between different task units within the organization?
A) coordination
B) development
C) control
D) orientation

Accepted Answer

Coordination ensures that different task units within the organization work together effectively and efficiently. It provides the appropriate linkage between different units, allowing them to achieve their individual and collective goals. Development, control, and orientation are all important functions within an organization, but they do not necessarily provide the necessary linkage between different units.

Question 3

Which of the following is not a product of global structure?
A) related divisional format
B) international division format
C) cluster format
D) unrelated holding company format

Accepted Answer

B

Question 4

Advances in communication technology and the decline in _____________ have made global products more attractive by making it possible to establish multinational teams consisting of individuals who are physically apart.
A) raw materials costs
B) terrorism
C) travel costs
D) labor costs

Accepted Answer

The question mentions that "advances in communication technology" have "made it possible to establish multinational teams consisting of individuals who are physically apart." This suggests that travel costs are no longer a significant barrier to working with people in different parts of the world.

Question 5

Which structure makes it easy to dispose of non-core assets while strengthening core ones?
A) mixed product
B) cluster format
C) matrix design
D) holding company format

Accepted Answer

The holding company format is designed to manage a group of companies, which allows for the easy disposal of non-core assets while strengthening the core ones. This is because each subsidiary operates independently, making it simpler to sell off non-core assets without affecting the overall functioning of the holding company.

Question 6

This role is where subsidiaries operate in less strategically important markets but have competence to maintain local operations.
A) strategic Leader
B) implementer
C) contributor
D) black hole

Accepted Answer

The role of an "implementer" is characterized by subsidiaries that operate in markets of lesser strategic importance and possess the competence necessary to maintain local operations effectively. These subsidiaries focus on implementing the parent company's strategies and adapting them to local conditions without playing a major role in strategic development.

Question 7

Which of these is not a MNE design?
A) global functional
B) technological
C) global geographical
D) none of the above

Accepted Answer

Technological is not a recognized design or structure for multinational enterprises (MNEs). MNE designs typically refer to how companies organize their international operations, such as global functional or global geographical structures, rather than focusing on technology as a primary organizational design.

Question 8

Subsidiary strategy can be______________________.
A) autonomous
B) receptive
C) active
D) all of the above

Accepted Answer

Subsidiary strategy can be autonomous, in which the subsidiary has significant decision-making power and operates independently. It can also be receptive, in which the subsidiary takes direction and follows the lead of the parent company. Additionally, it can be active, in which the subsidiary plays an active role in developing and implementing strategic initiatives. Therefore, all of the above options are correct.

Question 9

Which of the following was one of the first to shift to global structures?
A) Nestlé
B) Royal Dutch/Shell
C) Unilever
D) all of the above

Accepted Answer

According to the text, all three companies (Nestlé, Royal Dutch/Shell, and Unilever) were among the first to shift to global structures.

Question 10

What subsidiary strategies play a key role in balancing integration and local responsiveness?
A) autonomous, receptive, active
B) multi-domestic, global, transnational
C) strategic leader, contribution, implementer
D) design, knowledge, structure

Accepted Answer

Autonomous, receptive, and active strategies balance integration and local responsiveness by allowing subsidiaries to operate independently while still contributing to the overall goals of the organization.

Question 11

_____________designs are unique in that they contain simultaneous, intersecting differentiation bases, with many employees reporting to two or more supervisors simultaneously.
A) Strategic
B) Global
C) Matrix
D) None of the above

Accepted Answer

Matrix designs are unique in that they have two intersecting differentiation bases, such as product and function, or geography and function. This means that employees may report to two or more supervisors simultaneously. Strategic and global designs may not necessarily have this intersection of bases, and the statement is not true for all organizations using those designs.

Question 12

The main objective of organizational design is
A) to help employees find information.
B) to provide, maintain and develop the organizational structure that works best towards the achievement of the company's strategic goals.
C) to help prospective customers choose what company to do business with.
D) to determine what areas of interest the company should pursue.

Accepted Answer

Organizational design is the process of aligning the structure, processes, and roles within an organization to achieve its strategic goals most effectively. Therefore, the main objective of organizational design is to provide, maintain and develop the structure that works best towards the achievement of the company's strategic goals. The other options are not related to the main objective of organizational design.

Question 13

MNEs operate in what kind of environment?
A) relaxed and stable
B) diverse and rapidly changing
C) global
D) generalized

Accepted Answer

MNEs operate in a diverse and rapidly changing environment due to their global operations, competition, and constant developments in technology, politics, economy, and culture across different countries and regions.

Question 14

This type of strategy indicates relative standardization across national markets, allowing strategic and operational control.
A) global
B) multi-domestic
C) receptive
D) transnational

Accepted Answer

The global strategy involves standardization of products, advertising, and other marketing activities across various country markets. This allows for strategic and operational control from a central location, typically the firm's headquarters. In contrast, a multi-domestic strategy involves tailoring products and marketing to specific national markets, while a receptive strategy involves adapting to local market conditions without significant coordination from the headquarters. Finally, a transnational strategy involves combining the benefits of global and multi-domestic strategies, while overcoming their drawbacks, by seeking worldwide efficiencies and local responsiveness.

Question 15

This type of strategy is one where the subsidiary performs most activities of the value chain independently of headquarters, selling most of its output in the local market.
A) autonomous
B) active
C) transnational
D) receptive

Accepted Answer

The answer of This type of strategy is one where...

Question 16

Global matrix structures are
A) transnational
B) involving combinations of products and functions.
C) not 2k compatible.
D) all of the above

Accepted Answer

The answer of Global matrix structures are
A) transnational
B) involving combinations...

Question 17

Subsidiary strategy can be
A) autonomous
B) receptive
C) active
D) all of the above

Accepted Answer

Subsidiary strategy can be autonomous, where the subsidiary has a great deal of freedom in decision-making and operates independently; receptive, where the subsidiary follows the direction and guidance of the parent company and has limited decision-making power; or active, where the subsidiary is actively involved in the development of strategic plans and initiatives alongside the parent company. Therefore, all of the above options are possible subsidiary strategies.

Question 18

This type of strategy is one where many activities are located locally but carried out in close coordination with other subsidiaries.
A) global
B) receptive
C) multi-domestic
D) active

Accepted Answer

The answer of This type of strategy is one where...

Question 19

The three basic types of product structure include
A) duplication, organization resources, and functional specialization.
B) the related divisional format, the cluster format, and the unrelated holding company.
C) economic realities, business prospects, and regional integration.
D) none of the above

Accepted Answer

The three basic types of product structure are the related divisional format (grouping products based on similarity and relatedness), the cluster format (grouping products based on their market or customer base), and the unrelated holding company (diversification into unrelated industries). Options A and C do not accurately describe the types of product structure.

Question 20

An example of a _________________, is when corporate management develops resources and capabilities to make it more responsive to the local environment.
A) black hole
B) implementer subsidiary
C) contributor subsidiary
D) highly competent national subsidiary

Accepted Answer

The answer of An example of a _________________, is when...

Quiz 11: Mne Organization Structure and Design

The main advantages of ________________ structures are a global vision and the ability to leverage resources across regions.

What provides the appropriate linkage between different task units within the organization?

Which of the following is not a product of global structure?

Advances in communication technology and the decline in _____________ have made global products more attractive by making it possible to establish multinational teams consisting of individuals who are physically apart.

Which structure makes it easy to dispose of non-core assets while strengthening core ones?

This role is where subsidiaries operate in less strategically important markets but have competence to maintain local operations.

Which of these is not a MNE design?

Subsidiary strategy can be______________________.

Which of the following was one of the first to shift to global structures?

What subsidiary strategies play a key role in balancing integration and local responsiveness?

_____________designs are unique in that they contain simultaneous, intersecting differentiation bases, with many employees reporting to two or more supervisors simultaneously.

The main objective of organizational design is

MNEs operate in what kind of environment?

This type of strategy indicates relative standardization across national markets, allowing strategic and operational control.

This type of strategy is one where the subsidiary performs most activities of the value chain independently of headquarters, selling most of its output in the local market.

Global matrix structures are

Subsidiary strategy can be

This type of strategy is one where many activities are located locally but carried out in close coordination with other subsidiaries.

The three basic types of product structure include

An example of a _________________, is when corporate management develops resources and capabilities to make it more responsive to the local environment.