Question 1

A joint venture occurs when two equal-sized firms agree to blend their operations,creating one larger firm.

Accepted Answer

A) True 
 B)False

Question 2

For its South American operations,Caterpillar performs most functions at its U.S.headquarters but markets through cooperative relationships with local distributors.Based on this information,which entry mode is Caterpillar using in South America?

Accepted Answer

A) Internal new venture 
B) Joint venture 
C) Merger 
D) Acquisition 
E) Intrapreneurship

Question 3

The wasteful duplication of functional resources is most likely to arise with a

Accepted Answer

A) functional structure. 
B) product team structure. 
C) matrix structure. 
D) multidivisional structure. 
E) geographic structure.

Question 4

In general,the choice of structure and control systems for managing a global business is a function of which of the following factors?

Accepted Answer

A) The decision of how to distribute and allocate responsibility between managers at home and managers abroad 
B) The selection of the organizational structure that groups divisions both at home and abroad and that allows for the best use of resources 
C) The selection of the right kinds of integration and control mechanisms 
D) All of these choices 
E) None of these choices

Question 5

The multidivisional organization structure offers several advantages,including

Accepted Answer

A) enhanced corporate financial control. 
B) enhanced strategic control. 
C) enhanced growth. 
D) stronger pursuit of internal efficiency. 
E) all of these choices.

Question 6

Explain the benefits of the multidivisional structure for managing a firm that competes in several industries.

Accepted Answer

The answer of Explain the benefits of the multidivisional structure...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Information technology facilitates

Accepted Answer

A) output control. 
B) behavior control. 
C) integration between divisions. 
D) integration between divisions and corporate headquarters. 
E) all of these choices.

Question 9

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?

Accepted Answer

A) Internal new venture 
B) Acquisition 
C) Joint venture 
D) Divestiture 
E) Merger

Question 10

A joint venture can be dangerous to a company if its partner is acquired by a competitor.

Accepted Answer

A) True 
 B)False

Question 11

It is important for corporate managers to be able to identify high-performing and underperforming divisions and to take corrective action as necessary.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) How to distribute and allocate responsibility and authority between managers at home and abroad 
B) The selection of the organizational structure that groups divisions both at home and abroad 
C) The selection of the right kinds of integration and control mechanisms 
D) The selection of the right kinds of organizational culture 
E) All of these choices

Question 13

In an unrelated multidivisional structure,the idea of corporate culture is meaningless.

Accepted Answer

A) True 
 B)False

Question 14

When a firm's managers are very concerned about the possibility of losing control of proprietary know-how,which entry mode should the firm avoid?

Accepted Answer

A) Acquisition 
B) Internal new venture 
C) Joint venture 
D) Divestiture 
E) Merger

Question 15

Oracle experienced difficulty in understanding its customers' needs and problems because Oracle was not using the very software it sold to other companies.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Multidivisional 
B) Product 
C) Product team 
D) Market 
E) Functional

Question 17

At the level of organizational structure,control,and culture,____ has given strategic managers many new options in implementing strategies.

Accepted Answer

A) research and development 
B) marketing research 
C) outsourcing 
D) benchmarking 
E) information technology

Question 18

The U.S.firm Intel,a maker of semiconductor chips,built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D)and marketing are centralized in the United States.Based on this information,which strategy is Intel pursuing?

Accepted Answer

A) Localization 
B) Transnational 
C) International 
D) Global standardization 
E) Stuck in the middle

Question 19

When the decision has been made to enter a new industry,which entry mode is most commonly used and what issues must managers address with this mode of entry?

Accepted Answer

The answer of When the decision has been made to...

Question 20

An international strategy

Accepted Answer

A) centralizes only the research and development (R&
D) and marketing functions. 
B) centralizes all functions. 
C) involves an appropriate mix of centralization and decentralization. 
D) is the most complex strategy. 
E) maximizes local responsiveness.

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

A joint venture occurs when two equal-sized firms agree to blend their operations,creating one larger firm.

For its South American operations,Caterpillar performs most functions at its U.S.headquarters but markets through cooperative relationships with local distributors.Based on this information,which entry mode is Caterpillar using in South America?

The wasteful duplication of functional resources is most likely to arise with a

In general,the choice of structure and control systems for managing a global business is a function of which of the following factors?

The multidivisional organization structure offers several advantages,including

Explain the benefits of the multidivisional structure for managing a firm that competes in several industries.

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

Information technology facilitates

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?

A joint venture can be dangerous to a company if its partner is acquired by a competitor.

It is important for corporate managers to be able to identify high-performing and underperforming divisions and to take corrective action as necessary.

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

In an unrelated multidivisional structure,the idea of corporate culture is meaningless.

When a firm's managers are very concerned about the possibility of losing control of proprietary know-how,which entry mode should the firm avoid?

Oracle experienced difficulty in understanding its customers' needs and problems because Oracle was not using the very software it sold to other companies.

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

At the level of organizational structure,control,and culture,____ has given strategic managers many new options in implementing strategies.

The U.S.firm Intel,a maker of semiconductor chips,built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D) and marketing are centralized in the United States.Based on this information,which strategy is Intel pursuing?

When the decision has been made to enter a new industry,which entry mode is most commonly used and what issues must managers address with this mode of entry?

An international strategy