BPL 5100 Chapter 9 Test Questions and Answers
Role of Information technology - Answer-Facilitate better control
- Easy to share information
- Easy to monitor
- Better coordination of resources
More difficult to HIDE problems
EX: SAP, Enterprise Information system
Localization strategy - An...
Role of Information technology - Answer-Facilitate better control
- Easy to share information
- Easy to monitor
- Better coordination of resources
More difficult to HIDE problems
EX: SAP, Enterprise Information system
Localization strategy - Answer-Best structure is Global Area(NA/SA/EU/PAC). This
structure is used by AVON.
International strategy - Answer-International-Division Structure. Medium need for
integration.
Standardization strategy - Answer-No export involved. need for integration is high.
Transnational Strategy - Answer-Global Matrix Structure. Need for integration is very
high. Need for coordination is high.
Growth - Answer-1- Grow from year to year in Size, by going through mergers and
acquisition.
2- Maximize growth rate by organizing the slower B.U into one division the remainder
business will grow faster.
What did Ms. Jung from Avon want to change? - Answer-AVON want to eliminate cost
cutting and they need to do some organizational restructuring. After restructuring profit
went back up.
What is AVON's GOAL? - Answer-Match organization structure to cost cutting.
Improvement of overall performance of the company, not one division.
Multi-division structure: Benefits
Stronger Pursuit of internal efficiency. - Answer-Since business is only working on 1
type of product they can become better at it. Over time these business units can be
more profitable.
Multi-division structure: Problems
Divisional-Corporate authority relationship"Agency theory" - Answer-Agent is Division
and Principle is Corporation. Divisions help Corporation achieve their goal. Ex: AVON
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