Question 1

According to the text, the simple organizational structure is often associated with:

Accepted Answer

A)  specialty businesses. 
B)  family-owned businesses. 
C)  state-owned businesses. 
D)  minority-owned businesses. 
A)  specialty businesses. 
B)  family-owned businesses. 
C)  state-owned businesses. 
D)  minority-owned businesses.

Question 2

If a firm wishes to obtain economies of scale and scope, it will need an organizational structure that more closely links its divisions so that it can employ a global strategy more effectively.

Accepted Answer

A) True 
 B)False

Question 3

If a firm is involved in a set of countries that can also be subdivided into distinct cultures, then it may be best to have a divisional structure to address each one.

Accepted Answer

A) True 
 B)False

Question 4

What is the benefit of a functional structure?

Accepted Answer

A)  Each division can operate more efficiently in a given business area. 
B)  Employees become more engaged with the firm as a whole. 
C)  Employees focus more on their functional areas. 
D)  The firm can avoid duplicating activities. 
A)  Each division can operate more efficiently in a given business area. 
B)  Employees become more engaged with the firm as a whole. 
C)  Employees focus more on their functional areas. 
D)  The firm can avoid duplicating activities.

Question 5

A mechanistic structure is one that is more flexible, innovative, and able to adapt to its environment.

Accepted Answer

A) True 
 B)False

Question 6

A(n) _____ is a separate company made from a prior division.

Accepted Answer

A)  merger 
B)  spin-off 
C)  shakeout 
D)  buyout 
A)  merger 
B)  spin-off 
C)  shakeout 
D)  buyout

Question 7

Increasing the administrative component:

Accepted Answer

A)  facilitates communication among departments. 
B)  impedes planning, coordination, and training. 
C)  increases the time needed to make decisions. 
D)  increases commitment to the organization as a whole. 
A)  facilitates communication among departments. 
B)  impedes planning, coordination, and training. 
C)  increases the time needed to make decisions. 
D)  increases commitment to the organization as a whole.

Question 8

Typically, the _____ structure is not used by international firms that have operations in large numbers of countries.

Accepted Answer

A)  functional 
B)  matrix 
C)  multidivisional 
D)  SBU 
A)  functional 
B)  matrix 
C)  multidivisional 
D)  SBU

Question 9

_____ exist when the average unit costs of a good or service decline as the quantity produced increases.

Accepted Answer

A)  Economics of agglomeration 
B)  Economies of scope 
C)  Economies of scale 
D)  Returns to scale 
A)  Economics of agglomeration 
B)  Economies of scope 
C)  Economies of scale 
D)  Returns to scale

Question 10

Organic structures are those that are focused on stability and hierarchical decision making.

Accepted Answer

A) True 
 B)False

Question 11

What is a functional organizational structure?

Accepted Answer

As a firm grows it may find that it need

Question 12

_____ are structures that are focused on stability and hierarchical decision making.

Accepted Answer

A)  Mechanistic structures 
B)  Organic structures 
C)  Nonbureaucratic structures 
D)  Joint specialization structures 
A)  Mechanistic structures 
B)  Organic structures 
C)  Nonbureaucratic structures 
D)  Joint specialization structures

Question 13

The matrix structure can work particularly well in settings where there are highly trained and highly skilled workers.

Accepted Answer

A) True 
 B)False

Question 14

The benefits of a multidivisional structure include the fact that the firm can avoid duplicating activities and may benefit from scale economies in activities such as marketing and finance.

Accepted Answer

A) True 
 B)False

Question 15

A(n) _____ organizational structure is a hybrid structure, combining different organizational forms.

Accepted Answer

A)  matrix 
B)  divisional 
C)  spin-off 
D)  SBU 
A)  matrix 
B)  divisional 
C)  spin-off 
D)  SBU

Question 16

What is a matrix organizational structure? What are the benefits and risks of a matrix structure?

Accepted Answer

A matrix organizational structure is a h

Question 17

The multidivisional is the most complicated of all the organizational structures.

Accepted Answer

A) True 
 B)False

Question 18

Economies of scope occur when cost savings result from performing two activities jointly.

Accepted Answer

A) True 
 B)False

Question 19

_____ are cost savings that result from performing two activities jointly.

Accepted Answer

A)  Returns to scale 
B)  Economies of scale 
C)  Economics of agglomeration 
D)  Economies of scope 
A)  Returns to scale 
B)  Economies of scale 
C)  Economics of agglomeration 
D)  Economies of scope

Question 20

As a firm grows it may find that the various parts of the business are too large to effectively coordinate with a simple functional structure. In this case, the firm develops a(n):

Accepted Answer

A)  SBU. 
B)  matrix structure. 
C)  multidivisional structure. 
D)  entrepreneurial structure. 
A)  SBU. 
B)  matrix structure. 
C)  multidivisional structure. 
D)  entrepreneurial structure.

According to the text, the simple organizational structure is often associated with:

If a firm wishes to obtain economies of scale and scope, it will need an organizational structure that more closely links its divisions so that it can employ a global strategy more effectively.

If a firm is involved in a set of countries that can also be subdivided into distinct cultures, then it may be best to have a divisional structure to address each one.

What is the benefit of a functional structure?

A mechanistic structure is one that is more flexible, innovative, and able to adapt to its environment.

A(n) _____ is a separate company made from a prior division.

Increasing the administrative component:

Typically, the _____ structure is not used by international firms that have operations in large numbers of countries.

_____ exist when the average unit costs of a good or service decline as the quantity produced increases.

Organic structures are those that are focused on stability and hierarchical decision making.

What is a functional organizational structure?

_____ are structures that are focused on stability and hierarchical decision making.

The matrix structure can work particularly well in settings where there are highly trained and highly skilled workers.

The benefits of a multidivisional structure include the fact that the firm can avoid duplicating activities and may benefit from scale economies in activities such as marketing and finance.

A(n) _____ organizational structure is a hybrid structure, combining different organizational forms.

What is a matrix organizational structure? What are the benefits and risks of a matrix structure?

The multidivisional is the most complicated of all the organizational structures.

Economies of scope occur when cost savings result from performing two activities jointly.

_____ are cost savings that result from performing two activities jointly.

As a firm grows it may find that the various parts of the business are too large to effectively coordinate with a simple functional structure. In this case, the firm develops a(n):

Introduction to International Management

Culture and International Management

The Economic, Legal, and Political Environment

Strategy Fundamentals and Corporate Strategy

International Market Entry

Business- and Functional-Level Strategy

Motivation

Leadership

Decision Making

Influence and Negotiation

Evaluation and Control

Human Resources Management

The Future of International Management

Filters

Exam 13: The Structure of the International Firm

According to the text, the simple organizational structure is often associated with:

If a firm wishes to obtain economies of scale and scope, it will need an organizational structure that more closely links its divisions so that it can employ a global strategy more effectively.

If a firm is involved in a set of countries that can also be subdivided into distinct cultures, then it may be best to have a divisional structure to address each one.

What is the benefit of a functional structure?

A mechanistic structure is one that is more flexible, innovative, and able to adapt to its environment.

A(n) _____ is a separate company made from a prior division.

Increasing the administrative component:

Typically, the _____ structure is not used by international firms that have operations in large numbers of countries.

_____ exist when the average unit costs of a good or service decline as the quantity produced increases.

Organic structures are those that are focused on stability and hierarchical decision making.

What is a functional organizational structure?

_____ are structures that are focused on stability and hierarchical decision making.

The matrix structure can work particularly well in settings where there are highly trained and highly skilled workers.

The benefits of a multidivisional structure include the fact that the firm can avoid duplicating activities and may benefit from scale economies in activities such as marketing and finance.

A(n) _____ organizational structure is a hybrid structure, combining different organizational forms.

What is a matrix organizational structure? What are the benefits and risks of a matrix structure?

The multidivisional is the most complicated of all the organizational structures.

Economies of scope occur when cost savings result from performing two activities jointly.

_____ are cost savings that result from performing two activities jointly.

As a firm grows it may find that the various parts of the business are too large to effectively coordinate with a simple functional structure. In this case, the firm develops a(n):

Introduction to International Management

Culture and International Management

The Economic, Legal, and Political Environment

Strategy Fundamentals and Corporate Strategy

International Market Entry

Business- and Functional-Level Strategy

Motivation

Leadership

Decision Making

Influence and Negotiation

Evaluation and Control

Human Resources Management

The Future of International Management

Filters