Exam 10: Strategizing, Structuring, and Learning

Global R&D has pros and cons for the firm that uses that approach. However, suppose you are the leader of the country where that firm is based. How might you view having R&D being conducted by a global team in a matter that is vital to the nation's economic health/and or security?

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Question 1

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There is always a risk of knowledge leakage. To a company the benefits in obtaining profitable may offset the risks that competitors may get the results of the R&D and benefit also. However, when an organization is engaged in an activity in which the benefits and risks go far beyond the company and could significantly affect the entire nation, you as a leader might be concerned as to whether the global approach is used for the R&D and if so what type of controls exist to prevent leakage.
One real world example would the global R&D that was involved during World War II in developing the atomic bomb. There was leakage of vital information that was of immense value to the Soviet Union Russia) and its bomb development program - thus ultimately creating huge problems for the non-communist world.

Four strategic choices for MNEs do not include: a. Home replication. b. Domestic. c. Multidomestic. d. Transnational. e. Global.

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Question 2

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Dome stic

Knowledge management not only depends on IT, but also on informal social relationships within the MNE.

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Question 3

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The structure that is typically set up when firms initially expand abroad is a: a. International division structure. b. Geographic area structure. c. Global product division structure. d. Global matrix structure. e. Flexible matrix structure.

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Question 4

Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization? a. Better motivates subsidiary-level managers and employees through empowerment. b. Reduces corporate level overload of responsibilities. c. Better motivates subsidiary level managers. d. Sufficient power for corporate-level managers to initiate necessary actions. e. All of the above.

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Question 5

Which of the following is a key idea regarding the reciprocal relationship between strategies and structures within MNEs? a. The fit between strategies and structures is crucial. b. The relationship is two way. c. Strategies and structures are not static. d. All of the above. e. A good strategy cancels the effect of a bad structure.

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Question 6

Many MNEs have phased out the geographical area structure.

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Question 7

Knowledge management uses "centers of excellence" in which type of MNE? a. Home replication. b. Local multidomestic). c. Global. d. Transnational. e. All of the above.

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Question 8

Mega Global Corporation has centralized all of its global operations. The firm's manager in Lower Slobovia would like to see more decentralization. Her complaint: "We are the experts on what needs to be done in this country but we have to get approval from people who have no idea as to what is going on here. That makes neither sense nor dollars." Evaluate her statement.

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Question 9

Which is true of globalized R&D? a. Is often known as innovation-avoidance expense. b. One way to access such a high technology and research-rich cluster is to avoid FDI. c. R&D work performed by different locations and teams around the world virtually guarantees failure. d. For large firms, there are actually diminishing returns for R&D. e. Global virtual teams, which do not meet face to face, may overcome communication and relationship barriers.

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Question 10

Transnational strategy aims to capture "the best of both worlds" by endeavoring to be both cost efficient and locally responsive.

(True/False)

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Question 11

European MNE's are more likely than Japanese MNE to appoint host-country or third country nationals as head of a foreign subsidiary.

(True/False)

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Question 12

It is hard to distinguish between subsidiary initiative and empire building.

(True/False)

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Question 13

In a transnational MNE, the role of subsidiaries is to adapt and leverage parent company competencies.

(True/False)

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Question 14

Pressures for cost reductions and local responsiveness include: a. The framework of how to simultaneously deal with these two sets of pressures. b. Host country demands and expectations. c. Being locally responsive makes local customers and governments happy but increase costs. d. All of the above. e. None of the above.

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Question 15

Customer-focused dimensions cut across all three existing mainstream dimensions.

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Question 16

An international division serves as a means of coordination with the rest of the firm.

(True/False)

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Question 17

Suppose you are the leader of a nation which currently has few capabilities other than a well-educated populace that could contribute to economic growth. However, you think you have a bright idea. You are going to encourage MNEs from around the world to locate their headquarters in your country. What might attract them and how might that pay off if you are successful?

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Question 18

This structure is often used to supply customers often other MNEs) in a coordinated and consistent way across various countries. a. Global account structure. b. An industry sector structure. c. Solutions-based structure. d. All of the above. e. None of the above.

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Question 19

Which are not true in regards to institution-based considerations? a. Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments. b. Host-country governments often encourage, or coerce MNEs into undertaking certain activities. c. Strategists weigh the informal, backlash against activities which result in domestic job losses. d. Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks. e. To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary.

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Question 20

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Global R&D has pros and cons for the firm that uses that approach. However, suppose you are the leader of the country where that firm is based. How might you view having R&D being conducted by a global team in a matter that is vital to the nation's economic health/and or security?

Four strategic choices for MNEs do not include: a. Home replication. b. Domestic. c. Multidomestic. d. Transnational. e. Global.

Knowledge management not only depends on IT, but also on informal social relationships within the MNE.

The structure that is typically set up when firms initially expand abroad is a: a. International division structure. b. Geographic area structure. c. Global product division structure. d. Global matrix structure. e. Flexible matrix structure.

Many MNEs have phased out the geographical area structure.

Knowledge management uses "centers of excellence" in which type of MNE? a. Home replication. b. Local multidomestic). c. Global. d. Transnational. e. All of the above.

Transnational strategy aims to capture "the best of both worlds" by endeavoring to be both cost efficient and locally responsive.

European MNE's are more likely than Japanese MNE to appoint host-country or third country nationals as head of a foreign subsidiary.

It is hard to distinguish between subsidiary initiative and empire building.

In a transnational MNE, the role of subsidiaries is to adapt and leverage parent company competencies.

Customer-focused dimensions cut across all three existing mainstream dimensions.

An international division serves as a means of coordination with the rest of the firm.

This structure is often used to supply customers often other MNEs) in a coordinated and consistent way across various countries. a. Global account structure. b. An industry sector structure. c. Solutions-based structure. d. All of the above. e. None of the above.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizing

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

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