Deck 17: Planning, Organization, and Control of Global Marketing Operations

Question 1

Under the _____ design of global activities organization, the company is configured along areas such as countries, regions, or some combination of these two levels.

A)international division
B)cryptic division
C)product-based structure
D)geographic structure
E)matrix structure

Answer 1

D

Question 2

A bottom-up planning approach starts with the _____ subsidiaries.

A)local
B)global
C)transnational
D)manufacturing
E)high-tech

Answer 2

A

Question 3

Under the _____ design of global activities organization, the company basically has two entities (the domestic division and the international division).

A)international division
B)cryptic division
C)product-based structure
D)geographic structure
E)matrix structure

Answer 3

A

Question 4

All of the following are examples of the principal designs that firms can adopt to organize their global activities except:

A)an international division.
B)a city division.
C)a product-based structure.
D)a geographic structure.
E)a matrix structure.

Question 5

Typically, when overseas sales account for a very small fraction of the company's overall sales revenues, _____ can easily handle the firm's global activities.

A)complex organizational structures
B)network organizational structures
C)simple organizational structures
D)a virtual system
E)a matrix system

Question 6

Top-down strategic planning is based on a _____ approach.

A)decentralized
B)centralized
C)regional
D)globalized
E)local

Question 7

Under the _____ design of global activities organization, the company is organized along its various product divisions.

A)international division
B)cryptic division
C)product-based structure
D)geographic structure
E)matrix structure

Question 8

Under the _____ design of global activities organization, the company uses the option of integrating two approaches so there is a dual chain of command.

A)international division
B)cryptic division
C)product-based structure
D)geographic structure
E)matrix structure

Question 9

Which of the following organizational structures is most appropriate for the high-tech company with highly complex products or MNCs with a much diversified product portfolio?

A)international division
B)cryptic division
C)global product division structure
D)geographic structure
E)matrix structure

Question 10

The first step of a global strategic marketing plan starts with:

A)market situation analysis.
B)actions plans.
C)strategies.
D)global ranking.
E)objectives.

Question 11

The content of a global strategic marketing plan covers the following four areas except:

A)a market situation analysis.
B)objectives.
C)strategies.
D)regional analysis.
E)action plans.

Question 12

Which of the following would be considered a key environmental factor that influences global organization design decisions and structure?

A)strategic importance of international business.
B)product diversity.
C)company heritage.
D)regional trading blocs.
E)quality of local managerial skills.

Question 13

A series of key criteria impact global organizations and their organizational designs.All of the following would be major environmental influences on the organizational design decision and structure except:

A)competitive environment.
B)rate of environmental change.
C)product diversity.
D)regional trading blocs.
E)nature of customers.

Question 14

A series of key criteria impact global organizations and their organizational designs.All of the following would be major firm-specific factors on the organizational design decision and structure except:

A)strategic importance of international business.
B)product diversity.
C)company heritage.
D)regional trading blocs.
E)quality of local managerial skills.

Question 15

In the area of global organizational design, the major firm-specific factors include the following except:

A)local customers.
B)strategic importance of international business.
C)product diversity.
D)company heritage.
E)quality of local managerial skills.

Question 16

Which of the following organizational structures is most appropriate for the company whose product line is not too diverse and does not require a large amount of adaptation to the local country needs?

A)international division
B)cryptic division
C)global product division structure
D)geographic structure
E)matrix structure

Question 17

Most companies that engage in global marketing will initially start off by establishing a(n):

A)city division.
B)country division.
C)international division.
D)export department.
E)export commission manager.

Question 18

The capstone of a company's global marketing activities is its _____.

A)strategic marketing plan.
B)strategic marketing design.
C)strategic marketing circle.
D)strategic marketing products.
E)strategic marketing processes.

Question 19

A recent survey of large multinational corporations found that pure _____ planning was most popular (used by 66 percent of the companies surveyed).

A)bottom-up
B)top-down
C)strategic
D)long-term
E)short-term

Question 20

As international sales grow, the organizational structure will evolve to mirror the growing importance of the firm's _____ activities.

A)local
B)regional
C)global
D)strategic
E)manufacturing

Question 21

The primary advantages of the matrix structure for organizing is that they represent the growing complexities of the global market arena and:

A)it fosters team spirit and cooperation among managers.
B)it secures higher profits.
C)it does not duplicate efforts.
D)it has smooth and accurate communications.
E)it has clear lines of communication with no confusion.

Question 22

As a profile of a twenty-first century country manager, _____ establishes a beachhead in a new market or heads a recently acquired local distributor.They should have an entrepreneurial spirit.

A)the trader
B)the representative
C)the builder
D)the ambassador
E)the cabinet member

Question 23

The regional headquarters functions as a "switchboard" between the product divisions and the country managers.

A)Scouting
B)Strategic stimulation
C)Signaling commitment
D)Coordination
E)Pooling resources

Question 24

As a profile of a twenty-first century country manager, _____ develops local markets.They are entrepreneurs who are willing to be part of regional global strategy teams.

A)the trader
B)the representative
C)the builder
D)the ambassador
E)the cabinet member

Question 25

All of the following are profiles that are suggested for the twenty-first century country manager except:

A)the trader.
B)the power broker.
C)the builder.
D)the ambassador.
E)the cabinet member.

Question 26

As a profile of a twenty-first century country manager, _____ is a team player with profit and loss responsibility for a small- to medium-sized country.Team-manship is key here.

A)the trader
B)the representative
C)the builder
D)the ambassador
E)the cabinet member

Question 27

Often the most important role of the regional headquarters is to manage strategic and tactical decisions across the region.

A)Scouting
B)Strategic stimulation
C)Signaling commitment
D)Coordination
E)Pooling resources

Question 28

Certain support and administrative tasks are often done more efficiently at the regional level instead of locally.Regional headquarters might fulfill support functions like after-sales services, product development, and market research.

A)Scouting
B)Strategic stimulation
C)Signaling commitment
D)Coordination
E)Pooling resources

Question 29

Which of the following areas are very difficult for a global product division to accomplish (therefore, this area is a shortcoming)?

A)large degree of flexibility in terms of cross-country resource allocation.
B)large degree of flexibility in terms of cross-country strategic planning.
C)scale economics.
D)facilitates a global focus.
E)easy communication and coordination among the various product divisions without duplication of effort.

Question 30

If a high-tech company organizes itself by breaking into business networks, radio communications, public telecommunications, components, and microwave systems, which of the following organizational structures would probably be in use?

A)international division
B)global product division structure
C)global network solutions
D)geographic structure
E)matrix structure

Question 31

All of the following are benefits of the global product division structure except:

A)large degree of flexibility in terms of cross-country resource allocation.
B)large degree of flexibility in terms of cross-country strategic planning.
C)scale economics.
D)facilitates a global focus.
E)easy communication and coordination among the various product divisions without duplication of effort.

Question 32

Which of the following would be considered a disadvantage or drawback of the matrix structure of organizing?

A)it does not foster team spirit.
B)it does not foster cooperation among managers.
C)dual (or triple) reporting.
D)it prohibits managers from thinking globally.
E)it causes managers to think locally only.

Question 33

With respect to regional structures, a recent survey found that all of the following roles were performed except:

A)scouting.
B)liberating.
C)strategic simulation.
D)signaling commitment.
E)pooling resources.

Question 34

The regional headquarters serves as a listening post to scan new opportunities and initiate new ventures.

A)Scouting
B)Strategic stimulation
C)Signaling commitment
D)Coordination
E)Pooling resources

Question 35

All of the following are problems with country-based subsidiaries except:

A)they are too costly.
B)they have coordination problems with corporate headquarters.
C)cross-fertilization is hindered.
D)local market conditions go unnoticed.
E)a not-invented-here mentality exists.

Question 36

The _____ structure of organization explicitly recognizes the multidimensional nature of global strategic decision making.

A)international division
B)customer division
C)global product division
D)geographic
E)matrix

Question 37

By establishing a regional headquarters, the MNC does this to the region that the company is serious about doing business in that region.

A)Scouting
B)Strategic stimulation
C)Signaling commitment
D)Coordination
E)Pooling resources

Question 38

All of the following are considered to advantages of the matrix structure of organizing except:

A)it fosters team spirit.
B)it fosters cooperation among managers.
C)it does not duplicate efforts.
D)it causes managers to think globally.
E)it causes managers to think globally but act locally.

Question 39

As a profile of a twenty-first century country manager, the _____ in large, mature markets whose tasks include handling government relations and legal compliance and maintaining good relations with large, local customers.

A)the trader
B)the representative
C)the builder
D)the ambassador
E)the cabinet member

Question 40

As a profile of a twenty-first century country manager, _____ is in charge of large and/or strategic markets.Prime responsibilities include handling government relations and integrating acquisitions and strategic alliances.

A)the trader
B)the power broker
C)the builder
D)the ambassador
E)the cabinet member

Question 41

A _____ is a top-line executive (sometimes CEO) who serves as the brand's advocate.

A)brand champion
B)product champion
C)local champion
D)corporate champion
E)high-tech champion

Question 42

To make global marketing strategies work, companies need to establish a(n) _____.

A)career system.
B)development system.
C)control system.
D)appeals system.
E)listening system.

Question 43

Global branding committees are usually made up of _____executives.

A)matrix
B)network
C)medium-line
D)top-line
E)bottom-line

Question 44

Global brand manager positions are created when top management lacks _____ expertise:

A)high-tech
B)human resources
C)operational
D)manufacturing
E)marketing

Question 45

According to the Stopford and Wells model, when companies first explore the global marketplace, they start off with a(n) _____.

A)local division
B)regional division
C)international division
D)global division
E)none of the above

Question 46

A(n) _____ can be described as being where country and regional managers look at strategic issues from multiple perspectives.

A)glocal mindset
B)global mindset
C)local mindset
D)regional mindset
E)country mindset

Question 47

According to the Stopford and Wells model, as foreign sales expand without an increase in the firm's foreign product assortment diversity, the company will most likely switch to a _____ structure.

A)host-country area
B)home-country area
C)global area
D)geographic area
E)local area

Question 48

The _____ is one solution that has been suggested to cope with the shortcomings associated with the classical hierarchical organization structures.

A)international division
B)global network
C)global product division
D)geographic
E)matrix

Question 49

The first step in any control process should be to:

A)clearly establish rewards and punishments.
B)set standards (metrics).
C)set controls.
D)set monitoring mechanisms.
E)establish who the controller is.

Question 50

The Stopford and Wells model shows the relationship between the:

A)organizational structure, foreign product diversity and domestic sales.
B)organizational structure, foreign product diversity and local sales.
C)organizational structure, foreign product diversity and the importance of foreign sales.
D)organizational structure, foreign product diversity and regional sales.
E)organizational structure, foreign product diversity and high-tech sales.

Question 51

The main purpose of a _____ is to ensure that the behaviors of the various parties within the organization are in line with the company's strategic goals.

A)career system
B)development system
C)control system
D)appeals system
E)listening system

Question 52

All of the following are disadvantages or drawbacks of the matrix structure of organizing except:

A)dual reporting leads to conflicts and confusion.
B)dual profit responsibilities lead to conflicts and confusion.
C)bureaucratic bloat.
D)power clashes can occur.
E)managers think globally and act locally.

Question 53

Several management theorists have made an attempt to come up with the "right" fit between the MNC's environment (internal and external) and the organizational setup.One popular model examines the relationship between organizational structure, _____, and the importance of foreign sales to the company (as a share of total sales).

A)product prices
B)domestic services
C)foreign product deliveries
D)foreign product diversity
E)purchasing habits

Question 54

The networked global organization is sometimes referred to as _____.

A)international.
B)multinational.
C)transnational.
D)local-national.
E)quasi-national.

Question 55

Formal control systems are also called _____ control systems.

A)administrative
B)conductive
C)selective
D)bureaucratic
E)strategic

Question 56

Asea Brown Boveri (ABB), the Swiss-Swedish engineering company is an example of _____.

A)local networking
B)regional networking
C)global networking
D)domestic networking
E)high-tech networking

Question 57

The _____ model is an attempt to reconcile the tension between the need for local responsiveness and the wish to be an integrated whole.

A)international division
B)global network
C)global product division
D)geographic
E)matrix

Question 58

In the area of global branding strategies, the following options are used except:

A)global branding committee.
B)brand champion.
C)global brand manager.
D)informal, ad-hoc branding meetings.
E)network meetings.

Question 59

In the process of global brand management, if a company decides against a formal structure, it might still find it worthwhile to have an informal mechanism.This usually takes the form of a(n) _____ branding meeting.

A)ad-hoc
B)temporary
C)longitudinal
D)outside
E)domestic

Question 60

All of the following are parts (or basic building blocks) of a formal control system except:

A)the establishment of performance standards.
B)the measurement and evaluation of performance against standards.
C)the analysis and correction of deviation from standards.
D)perfection training.

Question 61

The first step of a global strategic marketing plan starts with market situation analysis.

Question 62

The _____ form of corporate culture is distinguished by an embodiment of a long socialization process; strong, power norms; and a defined set of internalized controls.

A)market based
B)leader based
C)employee based
D)clan based
E)tradition based

Question 63

The two types of standards are behavior and _____.

A)outcome-based.
B)performance-based.
C)intellectual-based.
D)strategic-based.
E)structural-based.

Question 64

The _____ form of corporate culture is distinguished by norms that are loose or absent; socialization processes are limited; and control systems are purely based on performance measures.

A)market based
B)leader based
C)employee based
D)clan based
E)tradition based

Question 65

The capstone of a company's global marketing activities is its strategic marketing plan.

Question 66

In a decentralized structure, most of the decision-is made at the country-level.

Question 67

In industries where competition is highly localized, a centralized structure is recommended.

Question 68

The two most common forms of informal control are human resource development and _____.

A)manufacturing
B)production
C)network structure
D)strategic control
E)corporate culture

Question 69

Trading blocs rarely impacts company marketing efforts.

Question 70

Companies with substantial product diversity tend to go for a global geographic division configuration.

Question 71

The global product structure is most appropriate for companies whose product line is not too diverse and does not need a large amount of adaptation to local country needs.

Question 72

To shape a shared vision, cultural values primarily demand which of the following properties?

A)easy to understand in only one way and written in English.
B)have clarity, continuity, and consistency.
C)have symbolism, sex-appeal, and sensitivity.
D)be dynamic, demanding, and declarative.
E)be global, gifted, and guiding.

Question 73

Corporate culture rarely impacts international organizational structure.

Question 74

Corporate cultures can be clan-based or _____.

A)market based
B)leader based
C)employee based
D)symbol based
E)tradition based

Question 75

The global product division system concentrates the global resources of the company.

Question 76

The charter of the international division is to develop and coordinate the firm's global operations.

Question 77

The diversity of the company's foreign product line is another key factor in shaping the company's organization.

Question 78

Although proper reward systems are crucial to motivate subsidiary managers, a recent study has shown that the key role played is by the presence of _____.

A)strong leadership
B)bonuses
C)perks
D)due process
E)nondiscrimination

Question 79

With a global product division structure, each of the company's different product divisions are treated as a cost center.

Question 80

A relentless product-driven orientation can distract the company from local market needs.