Question 1

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.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A)   Transnational strategy and national responsiveness
B)   Transnational strategy and learning
C)   Transnational strategy and global efficiency
D)   Global strategy and national responsiveness D

Question 3

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.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

The answer of Briefly discuss the development and diffusion of...

Question 5

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?

Accepted Answer

The answer of The CEO of SemChem Co. was considering...

Question 6

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

Accepted Answer

A)   Multiple diverse perspectives are developed and legitimized.
B)   Physical assets and management capabilities are internationally distributed, yet interdependent.
C)   Integrative processes are flexible and robust.
D)   Knowledge is developed centrally and adapted locally.

Question 7

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

Accepted Answer

The answer of Name and briefly describe three organizational characteristics...

Question 8

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

Accepted Answer

A)   Change in individual attitudes and mentalities; then, change in interpersonal relationships and processes; and finally, change in the formal structure and responsibilities
B)   Change in the formal structure and responsibilities; then, change in interpersonal relationships and processes; and finally, change in individual attitudes and mentalities
C)   Change in interpersonal relationships and processes; then, change in the formal structure and responsibilities; and finally, change in individual attitudes and mentalities.
D)   Change in individual attitudes and mentalities; then, change in the formal structure and responsibilities; and finally, change in interpersonal relationships and processes

Question 9

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?

Accepted Answer

The answer of Historically, many large Japanese companies used a...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   Most key assets and resources are decentralized.
B)   Subsidiaries are highly autonomous.
C)   Corporate management regards subsidiaries as largely independent national operations.
D)   Reporting and oversight conflicts prevail.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements regarding knowledge diffusion is correct?

Accepted Answer

A)   In a decentralized federation, knowledge is developed in national subsidiaries and diffused throughout the organization
B)   In a centralized hub, knowledge is developed and retained at the center.
C)   In a coordinated federation, knowledge is developed at the center and transferred to overseas units for local adaptation.
D)   Knowledge diffusion is independent of structure, such that knowledge diffuses in a quite similar manner in all organizational structures.

Question 15

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

Accepted Answer

A)   Most of the key assets and resources are concentrated in the home country.
B)   Tight strategic and operational controls are maintained over the subsidiaries.
C)   Most of the manufacturing and product development is executed by the subsidiaries.
D)   Corporate management regards its subsidiaries as delivery pipelines to the global market.

Question 16

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?

Accepted Answer

A)   Decentralized and nationally self-sufficient.
B)   Centralized and globally scaled.
C)   Dispersed, specialized, and interdependent.
D)   Core competencies are centralized; other assets and capabilities are decentralized.

Question 17

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

Accepted Answer

A)   Most assets and resources are decentralized but well controlled by the headquarters.
B)   Subsidiaries are regarded as key sources of knowledge and expertise.
C)   Subsidiary control exercised by the headquarters is usually quite formal and rigorous.
D)   Corporate managers tend to regard offshore subsidiaries as extensions of domestic operations.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Briefly discuss the characteristics of the decentralized federation organizational model.

Accepted Answer

The answer of Briefly discuss the characteristics of the decentralized...

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.

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?

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.

Briefly discuss the characteristics of the decentralized federation organizational model.