Exam 11: Mne Organization Structure and Design

The product region matrix overlaps a regional divisional structure with a number of product managers who are expected to achieve business results and whose responsibilities cut across regional lines.

A multidomestic strategy is one in which strategic and operational decisions are delegated to strategic business units in each country.

A multidomestic strategy leverages economies of scale and can quickly disseminate innovations across borders; however, it lacks in responsiveness to local markets.

In the ____________________ or conglomerate format, businesses are managed as investment rather than profit centers with wide reporting variations.

The international division format was mainly used by firms with a low ratio of domestic revenues and low foreign product diversity.

Which of the following is not a product of global structure?

What subsidiary strategies play a key role in balancing integration and local responsiveness?

A __________ strategy is one in which strategic and operational decisions are delegated to strategic business units in each country.

Aetna is an example of a global firm with ____________________.

Advances in communication technology and the decline in _____________ have made global products more attractive by making it possible to establish multinational teams consisting of individuals who are physically apart.

The major disadvantages of the geographic structure are

Global structures were based on principles of unity of command, reducing communications barriers and enhancing coordination.

An essential component of organizational structure in MNEs is_______________.

This role is where subsidiaries operate in less strategically important markets but have competence to maintain local operations.

The organization design decision can be summarized as a choice between differentiation and integration.

Which of the following strategies leverages economies of scale and can quickly disseminate innovations across borders; however, it lacks in responsiveness to local markets?

The European Union creates powerful forces towards ______________, which makes divisional structure more feasible and facilitates coordination and control among country units?

Interestingly, this does not play a big role in the Asian Pacific region.

Removing compartmentalization between domestic and international operations allows a company to improve knowledge flow within its two new business units.

The national subsidiary structure used to be called the "mother-daughter" design.