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One reason why multinationals should worry about organizational design is correct answers new competition. The basic issue (s) that need to be considered for organizational design are Control. Division of work. Coordination. All of the above correct answers All of the above A pe...

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MGMT 4660: Exam 3 || with 100% Errorless Solutions.
One reason why multinationals should worry about organizational design is correct answers new
competition.

The basic issue (s) that need to be considered for organizational design are

Control.

Division of work.

Coordination.

All of the above correct answers All of the above

A permanent unit of the organization designed to focus the efforts of different subunits on
particular problems is a correct answers team

One of the major reasons why companies choose a functional structure is because correct
answers It helps achieve efficiency.

In the evolution of a firm's internationalization, most companies never reach a correct answers
metanational state.

According to the text, which of the following is NOT a key criterion used in picking an alliance
partner? correct answers Pick a partner who provides financial security.

An agreement not legally binding between companies to cooperate on any value-chain activity is
a (an) correct answers Informal international joint venture.

Which of the following describes the situation where companies stay in a strategic alliance
despite strong evidence that the alliance won't work? correct answers Escalation of commitment

Which management structure is popular in developing countries? correct answers Rotating

__________ means that companies rely on each other to contribute to the relationship. correct
answers Mutual dependency

In regards to organizing multinational business, Yahoo and Amazon are

the most likely models.

three-tiered, mixing global and local functions.

both of the above. correct answers Both of the above

, An Internet host that allows users to send encrypted data so that those outside the connection
cannot see the information is a correct answers a secure server

Cost reduction, technology and efficiencies are considered to be the ________ of e-commerce.
correct answers attractions

Multinational e-commerce enablers exist because correct answers Many companies including
very large ones, do not have the internal resources or abilities to conduct all e-commerce
functions.

The internet has enabled the emergence of a new form of multinational, known as correct
answers Born-globals

The Basic Functional Structure works best when organization has: correct answers Few products
Few locations
Few types of customers
A stable environment
Routine technology

The Basic Structures: Product correct answers Departments or subunits based on different
product groups
Product is sufficiently unique to require focused functional efforts on one type of product or
service

Basic Structures: Geographic correct answers Departments or subunits based on geographic
regions
Culture of a particular region is sufficiently unique to require product adaptation
EX: McDonalds in India
McDonalds in California
McDonalds in South Korea
McDonalds in Spain
McDonalds in Morocco

Why are the product and geographic structures usually less efficient than the functional
organization? correct answers Functional tasks are duplicated for each product/ geographic area,
creating loss of economies of scale.
Transitional is the best structure.

When a company first goes international-- correct answers Company uses passive exporting

Structures need to be changed when— correct answers The international market is as important
as the domestic market.
Senior officials of the corporation have both foreign and domestic experience.

Export Department correct answers Created when exports become a significant percentage of a
company's sales

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