MGMT 485 EXAM 3 WITH COMPLETE SOLUTIONS A+
GRADED
Historically, a firm reorganizes as it internationalizes to ________.
A) inhibit organizational change
B) curb competition
C) boost domestic competition
D) accommodate new strategies - ANSWER D accommodate new strategies
Usually, smaller firms start their international involvement by ________.
A) exporting
B) divesting
C) entering into a full-blown global joint venture
D) using foreign direct investment - ANSWER A exporting
Which of the following does NOT represent a typical way in which firms organize their
international activities?
A) domestic structure plus export department
B) matrix structure
C) domestic structure plus foreign subsidiary
D) regional structure - ANSWER regional structure
Smaller firms are most likely to reorganize into ________ during their internationalization.
A) domestic structure plus export department
B) domestic structure plus foreign subsidiary
C) global product structure
,D) global functional structure - ANSWER domestic structure plus export department
Sedona Inc. is an American firm that manufactures high-quality handbags, duffel bags,
and leather belts at its facility in Arizona. Sedona's products have been featured in
various fashion magazines and as a result, consumer demand has increased
significantly. Currently, Sedona is organized as a domestic structure plus export
department. Executives at Sedona believe the firm is ready to internationalize its
operations, and they are considering various organizational structures.
Which of the following best supports the argument that Sedona should reorganize into a
global functional structure?
A) Sedona has a highly decentralized system of management.
B) Sedona uses a variety of technologies for its numerous and varied product lines.
C) Sedona has only a few domestic competitors.
D) Sedona serves a narrow spectrum of customers and has a product line that uses
similar technology. - ANSWER D) Sedona serves a narrow spectrum of customers
technology
A(n) ________ permits managers to allocate and coordinate resources for foreign
activities under one roof, and thus enhances the firm's ability to respond, both reactively
and proactively, to market opportunities.
A) local division
B) international division
C) export department
D) domestic structure plus foreign subsidiary - ANSWER B) International Division
Sigma Inc. is designed on the basis of the company's business activities such as
production, finance, and marketing. Foreign operations at Sigma are integrated into the
activities and responsibilities of each division to achieve economies of scale and
operative specialization. In other words, Sigma has a(n) ________.
A) domestic structure with foreign subsidiary
B) domestic structure with export department
,C) global functional structure
D) international division structure - ANSWER C) Global Functional Structure
Which of the following refers to a self-contained business within a company with its own
functional departments and accounting systems?
A) buying center
B) supply chain
C) value chain
D) strategic business unit - ANSWER D) Strategic Business Unit
Which of the following forms of organization is particularly appropriate in a dynamic and
diverse environment?
A) the global functional structure
B) the global product structure
C) the domestic structure plus export department
D) the domestic structure plus foreign subsidiary - ANSWER B) The Global Product
Structure
With the geographic structure, the focus is on ________, since products can be adapted
to local requirements.
A) marketing
B) innovation
C) divesting
D) importing - ANSWER A) Marketing
Marketing-oriented companies, such as Nestlé and Unilever, which produce a range of
products that can be marketed through similar channels of distribution to similar
customers, will usually opt for the ________.
A) domestic structure plus foreign subsidiary
, B) global geographic structure
C) matrix structure
D) domestic structure plus export department - ANSWER B) Global Geographic
Structure
A ________ is a hybrid organization of overlapping responsibilities.
A) functional structure
B) divisional structure
C) product structure
D) matrix structure - ANSWER D) Matrix Structure
Which of the following is true about the matrix structure of organizational design?
A) The matrix structure is developed to combine geographic support for both global
integration and local responsiveness.
B) Regional managers are solely responsible for the operations and performance of the
countries within a given region.
C) In the matrix structure, communication problems, confusion, and conflict are
minimal.
D) Overlapping responsibilities are absent in a matrix structure. - ANSWER A) The
Matrix Structure is developed to Combine geographic support for both global
integration and local responsiveness
Which of the following refers to focusing on and specializing in specific markets?
A) integration
B) implementation
C) differentiation
D) globalization - ANSWER C) Differentiation
Which of the following refers to the coordination of specific markets?
GRADED
Historically, a firm reorganizes as it internationalizes to ________.
A) inhibit organizational change
B) curb competition
C) boost domestic competition
D) accommodate new strategies - ANSWER D accommodate new strategies
Usually, smaller firms start their international involvement by ________.
A) exporting
B) divesting
C) entering into a full-blown global joint venture
D) using foreign direct investment - ANSWER A exporting
Which of the following does NOT represent a typical way in which firms organize their
international activities?
A) domestic structure plus export department
B) matrix structure
C) domestic structure plus foreign subsidiary
D) regional structure - ANSWER regional structure
Smaller firms are most likely to reorganize into ________ during their internationalization.
A) domestic structure plus export department
B) domestic structure plus foreign subsidiary
C) global product structure
,D) global functional structure - ANSWER domestic structure plus export department
Sedona Inc. is an American firm that manufactures high-quality handbags, duffel bags,
and leather belts at its facility in Arizona. Sedona's products have been featured in
various fashion magazines and as a result, consumer demand has increased
significantly. Currently, Sedona is organized as a domestic structure plus export
department. Executives at Sedona believe the firm is ready to internationalize its
operations, and they are considering various organizational structures.
Which of the following best supports the argument that Sedona should reorganize into a
global functional structure?
A) Sedona has a highly decentralized system of management.
B) Sedona uses a variety of technologies for its numerous and varied product lines.
C) Sedona has only a few domestic competitors.
D) Sedona serves a narrow spectrum of customers and has a product line that uses
similar technology. - ANSWER D) Sedona serves a narrow spectrum of customers
technology
A(n) ________ permits managers to allocate and coordinate resources for foreign
activities under one roof, and thus enhances the firm's ability to respond, both reactively
and proactively, to market opportunities.
A) local division
B) international division
C) export department
D) domestic structure plus foreign subsidiary - ANSWER B) International Division
Sigma Inc. is designed on the basis of the company's business activities such as
production, finance, and marketing. Foreign operations at Sigma are integrated into the
activities and responsibilities of each division to achieve economies of scale and
operative specialization. In other words, Sigma has a(n) ________.
A) domestic structure with foreign subsidiary
B) domestic structure with export department
,C) global functional structure
D) international division structure - ANSWER C) Global Functional Structure
Which of the following refers to a self-contained business within a company with its own
functional departments and accounting systems?
A) buying center
B) supply chain
C) value chain
D) strategic business unit - ANSWER D) Strategic Business Unit
Which of the following forms of organization is particularly appropriate in a dynamic and
diverse environment?
A) the global functional structure
B) the global product structure
C) the domestic structure plus export department
D) the domestic structure plus foreign subsidiary - ANSWER B) The Global Product
Structure
With the geographic structure, the focus is on ________, since products can be adapted
to local requirements.
A) marketing
B) innovation
C) divesting
D) importing - ANSWER A) Marketing
Marketing-oriented companies, such as Nestlé and Unilever, which produce a range of
products that can be marketed through similar channels of distribution to similar
customers, will usually opt for the ________.
A) domestic structure plus foreign subsidiary
, B) global geographic structure
C) matrix structure
D) domestic structure plus export department - ANSWER B) Global Geographic
Structure
A ________ is a hybrid organization of overlapping responsibilities.
A) functional structure
B) divisional structure
C) product structure
D) matrix structure - ANSWER D) Matrix Structure
Which of the following is true about the matrix structure of organizational design?
A) The matrix structure is developed to combine geographic support for both global
integration and local responsiveness.
B) Regional managers are solely responsible for the operations and performance of the
countries within a given region.
C) In the matrix structure, communication problems, confusion, and conflict are
minimal.
D) Overlapping responsibilities are absent in a matrix structure. - ANSWER A) The
Matrix Structure is developed to Combine geographic support for both global
integration and local responsiveness
Which of the following refers to focusing on and specializing in specific markets?
A) integration
B) implementation
C) differentiation
D) globalization - ANSWER C) Differentiation
Which of the following refers to the coordination of specific markets?
