and answers (100% correct and verified) graded a+ \\ pass!!
A company wants to gain market share but does not want to establish operations in
other countries nor tailor its products to the other countries.
Which entry strategy should the company use to meet this goal under these conditions?
Export
Transnational
Joint venture
Multidomestic -answer-Export
A car company wants to expand internationally but encounters much international
competition to reduce cost while responding to local needs.
Which strategy should the company use to meet this goal under these conditions?
Export
Web
Communication
Transnational -answer-Transnational
An employee feels empowered to make decisions to solve customer problems
independent of seeking manager approval and uses flexibility to meet customer needs.
Which decision-making structure is being used by this employee?
Matrix
Functional
Decentralized
Centralized -answer-Decentralized
What is functional departmentalization? -answer-organizing work and workers into
separate units responsible for particular business functions or areas of expertise
(marketing, finance, production, sales, etc)
What is product departmentalization? -answer-organizing work and workers into
separate units responsible for producing particular products or services
,What is process departmentalization? -answer-organizing the process of the work into
separate units that are responsible for particular steps (lumber cutting, shipping,
furniture finishing, etc)
What is customer departmentalization? -answer-organizing work and workers into
separate units responsible for particular kinds of customers (wholesale, retail, etc)
Geographic Departmentalization -answer-organizing work and workers into separate
units responsible for doing business in particular geographic areas
Functional/departmental structure -answer-Within a functional/departmental structure,
employees are divided into departments related to a functional area of the business,
such as marketing, production, human resources, information technology, and customer
service.
Divisional structure -answer-In a divisional structure, employees are divided into
departments based on different markets the company serves, product areas, and/or
geographic regions.
matrix structure -answer-A matrix structure simultaneously uses functional and
divisional structures in combination. Firms that engage in projects of limited duration
often use a matrix structure in which employees can be put on different teams to
maximize creativity and idea flow.
Teams Structure -answer-A team's structure is composed of people with
complementary skills working together for a common purpose. This structure is less
hierarchical, with shared leadership and objectives.
centralized organization -answer-A structure in which top-level managers delegate little
authority to lower levels
De-Centralized Organization -answer-when workers make decisions; associated with a
flexible structure; a flexible organizational structure is more effective than a formal
structure
A conglomerate company in the United States wants to conduct business in a foreign
country with another major corporation but recently found out that resources are limited
if both companies produced the same products at the same speed.
How should these companies cooperate to reduce costs?
Exporting
Partnering
Licensing
Acquisition -answer-Partnering
A multinational company plans on setting up a greenfield venture in a foreign country.
,What is a potential implication for the company?
The company will need to share costs with the other entity.
The company will be seen as an insider who would hire locals.
The company should work in a sound regulatory environment.
The company will gain a quick entry into a new market. -answer-The company will be
seen as an insider who would hire locals.
A company wishes to make a foreign direct investment into a country.
Which investment should be used by the company?
Purchase of a plant in the host country
Purchase of a noncontrolling investment in a host country company
Purchase of a bond in the host country's bond market
Purchase of stock in a host country company -answer-Purchase of a plant in the host
country
A company wishes to expand into a new country with its current products. The company
is looking to keep the entry costs low.
Which method of entry should the company use to enter the country?
Acquisition
Greenfield venture
Strategic alliance
Licensing -answer-Licensing
When expanding internationally to a country with a lower average income, a company
made efforts to reduce the price of its product, even though it eliminated some of the
benefits the product has in other markets. This allowed for greater sales in the new
market.
Which strategy is being used by this company?
Standardization
Multibrand
Global
Adaptation -answer-Adaptation
A company owner is considering manufacturing using a global standardization strategy
to achieve economies of scale.
Why is this strategy effective?
It improves manufacturing processes.
It manufactures the same product for all markets.
It decreases shipping costs.
It ensures product safety is maintained. -answer-It manufactures the same product for
all markets.
, A company decides to focus on economies of scale to decrease production costs and
increase revenues.
Why is this strategy effective?
Manufacturing in large quantities keeps costs low.
Ordering in small quantities ensures that shipping costs stay low.
Manufacturing in small quantities minimizes operational costs.
Ordering in large quantities takes advantage of bulk pricing. -answer-Manufacturing in
large quantities keeps costs low.
A company is expanding internationally through the purchase of other companies and
decides to use the multibrand strategy.
Why is this strategy appropriate?
It competes with many companies using a different strategy for each competitor.
It has increased revenues by having customers make purchases from two entities.
It eliminates excess inventory from the parent company.
It has a purchased company with a recognizable brand in its market. -answer-It has a
purchased company with a recognizable brand in its market.
Which business challenge stems from exporting small amounts of goods through e-
commerce companies?
Time commitment with customs officials
Obeying legal restrictions
Getting products to market quickly
Reducing cultural barriers -answer-Obeying legal restrictions
A company has decided that a foreign direct investment should be made during the next
quarter to strengthen the organization.
Which method should be used for this purpose?
Exporting
Establishing a joint venture with another company
Licensing
Establishing a greenfield venture -answer-Establishing a greenfield venture
An individual is considering entering the global market via a franchise.
Which outcome should be expected by the individual if this approach is used?
Limited access to the franchiser's brand and trademarks
Low access to advertising and product training
Limited name recognition
Majority of financial risk -answer-Majority of financial risk