Exam 13: Implementing Strategy in Companies That Compete Across Industries and Countries

When implementing an international strategy,many companies create global divisions that they add to their existing divisional structures.

Transfer pricing is used most commonly in a

In a multidivisional structure,corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

The easiest and cheapest type of diversification strategy for a company to manage is

Starbucks' Frappuccino is distributed by Pepsi.Nestle and Coca-Cola announced an agreement with Beverage Partners Worldwide through which Coca-Cola will distribute and sell Nestle's Nestea throughout the globe.These are examples of which of the following?

Which of the following structures results in the creation of an office of corporate headquarters staff?

A camera manufacturer that has separate divisions for making personal cameras,movie cameras,and film acquired a small film developer and a car battery supplier.Which of the following structures is most appropriate for this firm?

To expand its global sales,the U.S.-based foods maker ConAgra purchased a firm that processes grains in the United Kingdom.ConAgra plans to manage the new business by allowing it to continue as before,with little integration into the rest of the firm.Based on this information,which strategy is ConAgra pursuing?

Divisional battles may lead to battles over transfer pricing.

In its U.S.operations,Japanese-based Sony has decentralized almost all of its tasks to an independent firm that it created and which it owns.Based on this information,which entry mode is Sony using in the United States?

Which structure has been adopted by most large,complex U.S.companies?

Companies pursue a localization strategy when they want to maximize responsiveness to the unique needs of customers in each country.

Business-to-business (B2B)networks link firms to

A global strategy

Unfortunately,different divisions in a firm with a multidivisional structure are not given authority to adopt their own organizational structures.

Ownership of the company created by a joint venture

Implementation problems can arise in unrelated acquisitions when managers from the acquiring company apply inappropriate structure and controls to manage the new business.

Which of the following factors must be considered in choosing the structure and control systems for managing a global business?

A company that makes and sells the same product in many different countries often groups its overseas divisions into ____ to simplify the coordination of products across countries.

Implementation of a global matrix provides a company with which of the following advantages?