Organizational Structure Concept Quiz

Harneet and Milos are discussing what needs to "fit" with the strategy according to the organizational structure concept. What is it?

• The company's budget

• The organizational capabilities

• The marketing plan

• The customer service approach

Milton and Riho are discussing organizational structure. What do most international managers find easier to determine?

• How to develop the organizational capabilities

• What to do as part of their strategy

• How to improve employee performance

• What the company's financial goals should be

Harneet and Tamara are discussing the concept of internationalization in the context of a multinational corporation (MNC). What is internationalization?

• The process by which a firm establishes its presence in domestic markets only.

• The process by which a firm gradually changes in response to international competition, domestic market saturation, and the desire for expansion, new markets, and diversification.

• The process by which a firm reduces its international activities to focus on local markets.

• The process by which a firm outsources all its activities to international partners.

During a business strategy class, Cath and Tamara discussed what Structural Evolution (Stages Model) in an MNC involves. What did they conclude?

• Reducing the number of employees to streamline operations.

• Expanding the product line to include a wider range of goods and services.

• Redesigning the organizational structure to optimize the strategy’s changes to work, making changes in the firm’s tasks and relationships, and designating authority, responsibility, lines of communication, and geographic dispersal of units.

• Centralizing all decision-making processes to the headquarters.

Riho and Milton are discussing how different companies manage their international operations. Which of the following is NOT a typical way that firms organize international activities?

• Domestic structure plus export department

• Global product structure

• International division

• Domestic structure plus domestic subsidiary

Rajni and Cath are discussing how their company is structured globally. What is the global functional structure designed on the basis of?

• The company's geographical locations

• The company's functions such as production, marketing, finance, etc.

• The company's managerial hierarchy

• The company's historical background

Riho and Milos are working on a project to integrate foreign operations into the activities and responsibilities of each department in their company's global functional structure. What is the purpose of this integration?

• To reduce the number of employees in each department

• To increase the company's global presence

• To gain functional specialization and economies of scale

• To simplify the organizational structure

In a company where Tamara and Milos work, what is the Matrix Structure?

• A traditional organization with a clear hierarchical structure

• A hybrid organization with overlapping responsibilities

• A decentralized network of independent units

• A structure based solely on project-based teams

Riho and Milos are discussing organizational structures. Has the Matrix Structure remained popular in recent times?

• Yes, it has become the standard in most firms

• No, it has generally fallen into disfavor recently

• Yes, it is gaining popularity due to its simplicity

• No, it has been completely abandoned by all firms

Meltem and Koo are working on a project about globalization. What are the two opposing forces in structural decisions they need to consider?

• The need for centralization and decentralization

• The need for differentiation and integration

• The need for diversification and investment

• The need for innovation and tradition