Question 1

Production coordination poses difficult problems in many regionalized organizations,which has led many companies to assign many specialized product managers who have line authority.

Accepted Answer

False

Question 2

The initial choice of organizational structure after discarding the international division is usually a hybrid based on product and market factors.

Accepted Answer

False

Question 3

Organizational change refers to the way that an organization formally arranges its various domestic and international units and activities,and the relationships among these various organizational components.

Accepted Answer

Organizational change refers to the process through which a company or organization changes its structure, strategies, operational methods, technologies, or organizational culture to effect change within the organization and adapt to new market conditions or internal pressures. The definition provided describes organizational structure, not organizational change.

Question 4

The regionalized organization appears to be popular with companies that manufacture products with a rather low technological content.

Accepted Answer

Regionalized organization is popular with companies that manufacture products with a low technological content because the production process can be standardized and easily replicated in different regions, while also being able to tailor products to local markets.

Question 5

Most companies establish worldwide organizations based on product,region,function,or customer classes.

Accepted Answer

This statement is true. Companies often organize their operations and management structures based on different factors such as the nature of their products or services, geographic regions they operate in, particular functions or departments within the organization, or specific customer groups they serve. This helps them to better coordinate and streamline their operations, allocate resources effectively, and tailor their strategies to different market conditions and customer requirements.

Question 6

Changes in an international company's strategy may require changes in the organization's design,but not the reverse.

Accepted Answer

Changes in an organization's design can also necessitate changes in its strategy, as the structure of an organization can influence its ability to execute strategies effectively.

Question 7

The type of structure that simplifies the task of directing worldwide operations because every country in the world is clearly under the control of someone who is in contact with headquarters is global product.

Accepted Answer

The type of structure described is actually a global area structure, where every region or area in the world is under the control of someone who is in contact with headquarters. Global product structure, on the other hand, organizes the company based on its product lines or divisions.

Question 8

coordinating the activities of departments to enable the firm to meet its overall objectives.

Accepted Answer

The answer of coordinating the activities of departments to enable...

Question 9

Both multinational and global companies use regionalized organizations.

Accepted Answer

Both multinational and global companies use regionalized organizations in order to better adapt and operate within different regions and cultures around the world.

Question 10

Organizational structure deals with how an international business should be organized in order to ensure that its worldwide business activities are integrated.

Accepted Answer

Organizational structure is designed to ensure that an international business's activities are coordinated and integrated across all locations and divisions. This helps to minimize duplication of efforts, improve communication and decision-making, and enhance overall efficiency and effectiveness.

Question 11

A company's organizational structure helps to determine where formal power and authority will be located within the organization.

Accepted Answer

Organizational structure outlines the formal reporting relationships, roles and responsibilities, and decision-making processes within an organization. It helps to establish lines of authority and communication and determine where final decision-making power will reside.

Question 12

The international division is a division in the organization that is responsible for all non-home country activities and reports to the domestic division.

Accepted Answer

The international division is a separate division that is responsible for all international activities and does not report to the domestic division.

Question 13

The product global corporate form eliminates the duplication of product and area specialists.

Accepted Answer

The product global corporate form organizes a company's activities around specific products or product groups, but it does not necessarily eliminate the duplication of product and area specialists. In fact, it can lead to duplication as both product divisions and geographic or functional areas may have specialists focused on similar tasks.

Question 14

In designing an international organization,it is essential that the structures and systems being implemented are not merely consistent with each other,but also with the strategy the company and its competitors are using.

Accepted Answer

The answer of In designing an international organization,it is essential...

Question 15

Few international companies are organized by function at the top level.

Accepted Answer

Many international companies are organized by geographic region or product line at the top level, rather than by function. This allows for more efficient decision-making and management of diverse operations across multiple countries and markets.

Question 16

A company's international operating environment,both currently and as it is expected to be in the future,is the primary determinant of its organizational structure.

Accepted Answer

While the international operating environment influences a company's organizational structure, it is not the primary determinant. Other factors such as company size, strategy, technology, and culture also play crucial roles in shaping organizational structure.

Question 17

The disadvantage of an organization divided into geographic regions is that each region must have its own product and functional specialists.

Accepted Answer

Because each region has its own unique characteristics and customer needs, it is necessary to have specialists who understand and can cater to those specific requirements. This can lead to redundancy and inefficiency in terms of resources and personnel.

Question 18

An evolving structure for an international organization over time is normal,as the company's involvement in foreign markets increases over time.

Accepted Answer

As a company's involvement in foreign markets increases, it is normal for the company's organizational structure to evolve and adapt to the changing needs and challenges of operating in international markets. This may involve creating new departments or teams focused on international operations, establishing new reporting relationships, and changing the overall organizational structure of the company to better support global activities.

Question 19

Global firms that organize by function at the top level have functional managers that report directly to the area heads.

Accepted Answer

In organizations that organize by function at the top level, functional managers typically report directly to the CEO or the highest-ranking person in the organization, not to area heads. Area heads or regional managers are more common in organizations structured by geographic region.

Question 20

A structure organized by more than one dimension at the top level is a matrix organization.

Accepted Answer

The answer of A structure organized by more than one...

Quiz 11: Organizational Design and Control