1. A concern that management faces in designing the organizational structure is: A) finding the most effective way to departmentalize to take advantage of the efficiencies gained from the specialization of labor. B) coordinating the activities of those departments to enable the firm to meet its overall objectives. C) both a and b. D) none of the above. 2. An organizational structure composed of one or more superimposed organizational structures in an attempt to mesh product, regional, functional, and other expertise is known as a: A) matrix organization. B) hybrid organization. C) conglomerate organization. D) functional organization.
International Business Chapter – Organizational Design and Control Task – Choose the best answer A concern that management faces in designing the organizational structure is: A) finding the most effective way to departmentalize to take advantage of the efficiencies gained from the specialization of labor B) coordinating the activities of those departments to enable the firm to meet its overall objectives C) both "a" and "b" D) none of the above An organizational structure composed of one or more superimposed organizational structures in an attempt to mesh product, regional, functional, and other expertise is known as a: A) matrix organization B) hybrid organization C) conglomerate organization D) functional organization An organizational form in which product divisions have been defined as though they were distinct, independent businesses is known as: A) a matrix overlay B) a strategic business unit C) an independent business unit D) none of the above An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization is known as: A) a non-traditional corporation B) a virtual corporation C) an outsourcing corporation D) a horizontal corporation An Industry Week survey of senior executives in large manufacturing firms revealed that the primary strategy adopted by respondents to become more competitive globally was to: A) expand into the Asian markets B) change its organizational structure C) concentrate on core businesses D) adopt value chain strategies With less than 50 percent of the voting stock and even with no voting stock an IC can maintain control by: A) a management contract B) control of the finances C) control of the technology D) all of the above Companies that adopted the global organizational form felt that this organization would: A) permit them to obtain cheaper labor B) be more capable of developing strategies to confront new global competition C) enable them to get lower interest rates to finance expansion D) restrict the theft of technology Regionalized organization seems to be popular with companies that: A) operate in many diverse foreign regions B) favor licensing as a form of market entry C) manufacture products with a low technological content requiring strong marketing ability D) manufacture products incorporating high technology in industrialized regions The _ organization has evolved from management's attempt to mesh product and regional and functional expertise while maintaining clear lines of authority A) hybrid B) matrix C) global D) functional 10 All the reasons for making decisions at IC headquarters, at subsidiary headquarters, or cooperatively: A) not apply in joint venture situations B) apply equally in joint venture situations C) apply only to a corporate entity between two or more companies that are foreign to the area where the joint venture is located D) apply only to a corporate entity between an IC and local owners 11 Traits of companies with de-jobbed workers include all of the following except: A) that employees are encouraged to make important decisions and are given the information necessary to make such decisions B) that employees are trained to the point that they can understand business and financial issues which were previously reserved for owners or top executives C) that employees get a stake in the fruits of their labor - a share of profits D) that employees follow a defined hierarchical structure Task – Decide the statements are true (T) or False (F) Changes in an international company's strategy may require changes in the organization's design, but not the reverse Two of the concerns that management faces in designing the organizational structure for an international company are (1) finding the most effective way to take advantage of the specialization of labor geographic differences, and (2) coordinating the activities of departments to enable the firm to meet its overall objectives The initial choice of organizational structure after discarding the international division is usually a hybrid based on product and market factors either a global product or geographic factors Issues arising due to production coordination in regionalized organizations have resulted in hiring specialized product managers who have no line authority Advantages of the virtual corporation concept include that it allows a company to build competence from the ground up and to increase management's control over the corporation's activities Task – Answer the questions Why is organizational structure an important issue for international companies? ... company to build competence from the ground up and to increase management's control over the corporation's activities Task – Answer the questions Why is organizational structure an important issue... faces in designing the organizational structure for an international company are (1) finding the most effective way to take advantage of the specialization of labor geographic differences, and (2)... entity between an IC and local owners 11 Traits of companies with de-jobbed workers include all of the following except: A) that employees are encouraged to make important decisions and are given the