1. When the organization is comprised of many different units that work on different kinds of
tasks that is?
a. centralization
b. mediation
c. differentiation
d. organizational matriculation
2. When managers, usually at or below the country level are making important decisions and
implementing them, this is referred to as?
a.
b.
c.
d.
Centralization
Decentralization
Mediation
Local control
3. The most popular organizational structure in international business today is?
a.
b.
c.
d.
Matrix
Geographic Division
Product division
international division structure
4. This kind of organizational structure has dual reporting relationships rather than a single line of
command?
a. geographic division
b. matrix
c. contemporary
d. network
5. This idea was popularized by Jack Welch, CEO of General Electric, who wanted to
eliminate vertical and horizontal boundaries within the company as well as break down
barriers between the company and its customers, suppliers, and other stakeholders.
a. mixed structure
b. contemporary structure
c. network structure
d. Project structure
Answers:
1. c
2. b
3. c
4. b
5. b
Q1. Which of the following is a premise of centralization?
A. Decisions should be made by senior managers who have the experience,
expertise, and judgment to find the best course of action for the company.
B. Decisions should be made by the employees that are closest to and most
familiar with the situation.
C. The effective configuration and coordination of the value chain depends on
headquarters letting local managers deal with local market conditions.
D. It ensures that operations in different countries operate toward achieving
global objectives by meeting national goals.
Q2. Which of the following is an advantage of decentralization?
A. Facilitates coordination of the value chain
B. Ensures that decisions are consistent with strategic objectives
C. Decisions made by those who directly deal with customers, competitors, and
markets.
D. Reduces the risks that lower-level employees make costly, wrong decisions.
Q3. The trend in most companies is toward more _____ structures.
A. decentralized
B. centralized
C. transitional
D. None of the above
Q4. On how many continents is Johnson and Johnson present?
A. 3
B. 5
C. 6
D. 7
Q5. A matrix organization does which of the following?
A. Institutes overlaps among functional and divisional forms
B. Gives functional, product, and geographic groups a common focus
C. Has dual reporting relationships rather than a single line of command
D. All of the above
Answers:
1) A
2) C
3) A
4) 6
5) D
Rebecca Piper
Quiz Questions Chapter 15
1.)
a)
b)
c)
d)
Johnson and Johnson has a very _______ structure.
decentralized
centralized
unorganized
paralyzed
2.)
a)
b)
c)
d)
A disadvantage of centralization is:
facilitates coordination of the value chain
encourages lower-level managers to take initiative
discourages lower-level managers to take initiative
motivates employees
3.)
a)
b)
c)
d)
Companies such as Exxon Mobile and British Petroleum use a _______ structure.
matrix
functional
geographic
product
4.) When there is elimination of vertical, horizontal, or external boundaries, it is
called
a) no boundaries
b) boundarylessness
c) nada boundaries
d) in bounds
5.) _____________ control uses external market mechanisms to establish objective
standards.
a) bureaucratic
b) clan
c) autocratic
d) market
Correct Answers
1….a
2….c
3….b
4….b
5….d
Chapter 15 Questions
1)
a)
b)
c)
Johnson & Johnson has a___________ autonomy worldwide.
decentralized
distributed
centralized
d) oligopoly
2)
a)
b)
c)
d)
An advantage of a decentralized power is:
Puts the organization at risk if many bad decisions are made.
Encourages lower-level managers to exercise initiative.
Impedes cross-unit coordination and capture of strategic fits.
Subsidiary will likely favor its own projects and performances at the expense of
global and overall performance.
3) Centralization is the degree to which high-level managers, usually above
the_____________ level, make important decisions and pass them down to lower
levels for implementation.
a) country
b) region
c) state
d) continent
4)
a)
b)
c)
d)
A matrix organization :
Institutes overlaps among functional and divisional forms
Gives functional product, and geographic groups a common focus
Has dual reporting relationship rather than a single line of command.
All of the above
5)
a)
b)
c)
d)
GE was founded in:
Germany
Norway
Hungary
Belgium
Answers:
1) A
2) B
3) A
4) D
5) C
Chapter 15 Questions
1.) What pharmaceutical company has been extremely successful in international
organization according to the case study?
a.) Merk
b.) Johnson and Johnson
c.) Tap
d.) Astrozenica
2.) What division structure is popular when foreign operations are large and are not
dominated by a single country or region?
a.)
b.)
c.)
d.)
Geographic
Matrix
International
Product
3.) A matrix organization…
a.)
b.)
c.)
d.)
Institutes overlaps among functional and divisional forms
Gives functional, product, and geographic groups a common focus
Has dual reporting relationships rather than a single line of command
All of the above
4.) Coordination systems….
a.)
b.)
c.)
d.)
link the various activities of a company
help CEO’s coordinate the organization structure of the company
tell transfer vehicles
all of the above
5.) In what country was the company lighting company Tungsram located in?
a.)
b.)
c.)
d.)
Poland
Germany
Hungary
Czech Republic
Anwers: 1. )b
2.) a
3.) d
4. )a
5.) c