Exam 4: Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility

Installing a matrix structure is the most effective way to transition from an organization based on multiple regional divisions to one able to manage both geographic and product diversity.

Which of the following strategic approach and strategic capabilities cannot be paired?

The key capabilities of national responsiveness, learning and transfer of home country knowledge abroad, and global efficiency are mutually exclusive. That is, having one capability inhibits the concurrent possession of others.

Briefly discuss the development and diffusion of knowledge in the decentralized federation, the coordinated federation and the centralized hub, respectively.

The CEO of SemChem Co. was considering how to reorganize the company following the management team's decision to create four new product divisions, while maintaining SemChem's existing three regional divisions. A consultant has recommended a solution that centers on driving the change by restructuring the organization around a matrix. Briefly describe the matrix structure and discuss some practical difficulties associated with this organizational structure?

Which of the following is not characteristic of companies with a transnational strategy?

Name and briefly describe three organizational characteristics that distinguish the transnational organization from multinational, international or global organizations.

Which of the following describes the preferred sequencing of changes associated with implementing the typically more effective emerging change process model?

Historically, many large Japanese companies used a centralized hub configuration. The 2011 earthquake in Japan resulted in a significant cost to Canon by inhibiting its production process. In response, the CEO of Canon announced in the 2011 annual report that they will have three headquarters, instead of one. These will be based in each of the US, Europe, and Japan. What are the challenges that the company will face during this transition?

In a transnational organization, knowledge is developed at the headquarters and transferred to foreign units.

In the transnational organization, capable managers situated in the national subsidiaries act as the primary source for sensing and analysing worldwide opportunities and threats.

Which of the following is not a core characteristic of the decentralized federation structure?

A transnational organization integrates its dispersed assets, resources, and capabilities through flexible processes involving centralization, formalization and rationalization.

Which of the following statements regarding knowledge diffusion is correct?

Which of the following is not a characteristic of the companies with centralized hub structure?

Isatis Co. has successfully transitioned from a global strategy to a transnational strategy. Which of the following describes the likely configuration of assets and capabilities that now most likely prevails at Isatis?

Which of the following is not a core characteristic of the coordinated federation structure?

Companies that pursue a multinational strategy are inclined to adopt the decentralized federation organizational model.

Summit Corp. is transitioning from a multinational strategy to a transnational strategy. It would probably be more effective and less costly if the company commenced its accompanying organizational transition by focusing on changing employees' attitudes and mentalities, than it would be if it led its efforts by engaging in structural change.

Briefly discuss the characteristics of the decentralized federation organizational model.