MANA 1301 Exam 4 Review Ch. 10

A product structure is one where an organization:

• is said to be organized by more than one dimension at the top level.

• groups products into separate divisions according to their similarities or differences.

• groups people together because they hold similar positions in a company, perform a similar set of tasks, or use the same kind of skills.

• groups products into separate divisions according to the needs of different customers.

• groups products into separate divisions according to the needs of the different geographical regions the company serves

Of the following, which is NOT a disadvantage of an international division?

• Managers in the international division may feel like “second class” citizens

• It fosters a global mindset in the people working within the division

• Core competencies and knowledge may not be shared.

• It may be difficult to capture learning-curve savings.

• Designing products with both domestic and international appeal may be difficult

According to C.K. Prahalad, the first stage of globalization is _____.

• when global firms set up operations in other countries

• when global businesses establish foreign subsidiaries to handle the exports from their home countries

• when multinational companies headquarter in their home country

• when companies produce goods in one country and export them to other countries

• when stateless corporations locate their core corporate functions and top executives in different countries

An area structure is one where an organization:

• groups products into separate divisions according to the needs of the different geographical regions the company serves.

• groups people together because they hold similar positions in a company, perform a similar set of tasks, or use the same kind of skills.

• is said to be organized by more than one dimension at the top level.

• groups products into separate divisions according to the needs of different customers.

• groups products into separate divisions according to their similarities or differences.

CEMEX has three divisions: (1) North America; (2) South America and the Caribbean; and (3) Europe, Asia, and the Middle East. CEMEX has a _____ structure.

• global

• continental

• multinational

• hybrid

• geographical region

A basic problem of the _____ structure is it is difficult to determine the responsibility and authority relationships between the functional and divisional managers.

• hybrid

• matrix

• functional

• divisional

• product

A global defense contractor needs deep functional skills as well as the ability to coordinate across the functions of each contract or project. For this example, the organizational structure that would best suit their needs would be a matrix structure.

• True

• False

The initial step toward globalization is ______.

• creating a statelessness

• creating a wholly owned subsidiary

• developing foreign manufacturing base through joint venture

• domestication

• exporting

North American Operations, GM Acceptance Corporation, International Operations, and Hughes Electronics are some of the subsidiaries of General Motors.

• True

• False

According to C.K. Prahalad, a global firm is in the third stage of globalization when it _____.

• locates its core corporate functions and top executives in different countries

• sets up operations in other countries

• is headquartered in its home country

• produces goods in one country and exports them to other countries

• establishes a foreign subsidiary to handle the exports from its home country