Exam 4: Managing in a Global Environment
The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.
False
Explain the differences between a multidomestic corporation,a global company,and a borderless organization.Include examples of companies for each of the types of organizations discussed.
a.A multidomestic corporation is a multinational corporation (MNC)that decentralizes management and other decisions to the local country.Local employees are hired to manage the business and marketing strategies are tailored to that country's unique characteristics.This type of globalization reflects the polycentric attitude.Many consumer companies manage their global businesses using this approach because they must adapt their products and services to meet the needs of the local markets.With operations in almost every country on the globe,Switzerland-based Nestle's managers match the company's products to its consumers.In parts of Europe,Nestle sells products that are not available in the United States or Latin America.b.A global company centralizes its management and other decisions in the home country.These companies treat the world market as an integrated whole and focus on the need for global efficiency.Although these companies may have considerable global holdings,management decisions with company-wide implications are made from headquarters in the home country.This approach to globalization reflects the ethnocentric attitude.Some examples of companies that can be considered global companies include Sony,Deutsche Bank AG,and Merrill Lynch.c.Other companies are going international by eliminating structural divisions that impose artificial geographical barriers.This type of MNC is called a transnational or borderless organization,and reflects a geocentric attitude.Managers choose this form of international organization to increase efficiency and effectiveness in a competitive global marketplace.For example,IBM dropped its organizational structure based on country and reorganized into industry groups.Thomson SA,based in France,has eight major locations around the globe.
Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name,technology,or product specifications in return for a lump sum payment or a fee usually based on sales.
A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.
Samanex Corporation maintains production facilities in 13 different countries on three continents.Each facility is managed by a native of the country where it is located.This practice is indicative of a(n)________ attitude.
"Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________.
The ________ decentralizes its management and other decisions to the local country.
Solidarity in the European Union is being undermined by protectionist pressures in some member countries.
Helga has noticed an increasing number of female CEOs of large corporations and also that more fathers are staying home to raise children while the mothers assume positions of leadership in business.This is a culture with ________.
Harley Davidson makes motorcycles but in its retail stores it also sells clothing,motorcycle accessories,jewelry,and many related products made by other companies.Harley Davidson is engaging in ________.
Which of the following is a feature of a multidomestic corporation?
The Association of Southeast Asian Nations is a trading alliance of ________.
Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics?
Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment.Using the GLOBE model,what can we infer about Alfredo's culture?
In South America,the Sawi tribe values deceit and treachery.Taking advantage of other tribes is cause for celebration.This culture is ________.
The process of exporting involves acquiring products made abroad and selling them domestically.
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