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International Business Final > Chapter 14 > Flashcards

Chapter 14 Flashcards

1
Q

What accurately characterized the reality of the global matrix structure?

A

It can be difficult to get work done because of power struggles between divisions

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2
Q

This produces an inflexible organization that is unable to reach a decision quickly

A

Global matrix structure

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3
Q

This refers to the totality of a firm’s organization, including formal organizational structure, control systems and incentives, organizational culture, processes and people

A

Organizational architecture

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4
Q

By organizational structure, we mean what 3 things

A

The formal division of the organization into subunits
The location of decision-making responsibilities within that structure
The establishment of integrating mechanisms to coordinate the activities of subunits

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5
Q

These are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits

A

Control systems

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6
Q

These are the decided used to reward appropriate managerial behavior

A

Incentives

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7
Q

The manner in which decisions are made and work is performed within the organization

A

Processes

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8
Q

This refers to the norms and value systems that are shared among the employees of an organization

A

Organizational culture

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9
Q

This refers to not only the employees of the organization, but also the strategy used to recruit, compensate, and retain those individuals and the type of people that they are in terms of their skills, values, and orientation

A

People

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10
Q

Organizational structure can be thought of in terms of what three dimensions

A

Vertical differentiation
Horizontal differentiation
Integrating mechanisms

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11
Q

This refers to the location of decision-making responsibilities within a structure

A

Vertical differentiation

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12
Q

This refers to the formal division of the organization into subunits

A

Horizontal differentiation

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13
Q

These are mechanisms for coordinating subunits

A

Integrating mechanisms

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14
Q

This structure tends to be favored by firms with a low degree of diversification and a domestic structure based on functions. The world is divided into geography areas

A

Worldwide area structure

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15
Q

This tends to be adopted by firms that are reasonably diversified and, accordingly, ironically had domestic structures based on product divisions. Each division is a self contained, largely autonomous entity with full responsibility for its own value creation activities.

A

Worldwide product division structure

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16
Q

What are the three components of a firm’s organizational structure?

A

The formal division of the organization into subunits
Location of decision-making responsibilities within the organization,
The establishment of integrating mechanisms to coordinate the activity in the subunits

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17
Q

These are societies of individuals who perform collective tasks with their own distinctive cultures and subcultures

A

Organizations

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18
Q

What are the three dimensions of organizational structure?

A

Vertical differentiation
Horizontal differentiation
Integrating mechanisms

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19
Q

Level of performance ambiguity associated with transnational firms

A

High

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20
Q

Level of performance ambiguity associated with global standardization firms

A

Medium

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21
Q

Level of performance ambiguity associated with localization firms

A

Low

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22
Q

The importance of local responsiveness in pursuing a localization strategy leads firms to adopt a ____ decision making model

A

Decentralized

23
Q

This allows for horizontal differentiation in product division and geographic areas

A

The global matrix structure

24
Q

Which control system is achieved by personal contact with subordinates

A

Personal

25
Q

The ______ strategy used both centralized control go realize location and experience effects that reduce costs, and decentralized decision making to meet the needs of local responsiveness

A

Transnational

26
Q

When performance ambiguity is high, the cost of control will be

A

High

27
Q

Three ways firms can divide themselves into subunits using horizontal differentiation

A

By type of business, by geographic area, by function

28
Q

Two benefits of the worldwide product division structure

A

Enhances the consolidation of value creation activities at key locations
Facilitates the transfer of core competencies within a division’s worldwide operations

29
Q

What conditions must be fulfilled to achieve superior enterprise profitability? (2)

A

Different elements of the firm’s organizational architecture must be internally consistent
Organizational architecture, the firm’s strategy, and the competitive environment must be consistent

30
Q

Four main types of control systems

A

Personal controls
Bureaucratic controls
Output controls
Cultural controls

31
Q

This control is achieved by personal contact with subordinates

A

Personal control

32
Q

This type of control tends to be most widely used in small firms, and also structured the relationships between managers at different levels in multinational enterprises

A

Personal controls

33
Q

This control is achieved through a system of rules and procedures that directs the actions of subunits

A

Bureaucratic control

34
Q

This control involves setting goals for subunits to achieve and expressing those goals in terms of relatively objective performance metrics such as profitability, productivity, growth, market share, and quality

A

Output control

35
Q

This control exists when employees “buy into” the norms and value systems of the firm. Employees tend to control their own behavior, which reduces the need for direct supervision

A

Cultural control

36
Q

The control system where goals are set for subunits to achieve and performance metrics are used to judge attainment of those goals is called

A

Output controls

37
Q

The basic principle of an incentive scheme for an individual employee is to link the incentive to

A

An output target

38
Q

The basic principle of this for an individual employee is to link the incentive to an output target

A

An incentive scheme

39
Q

This gives subunits an amount it can spend in a given year

A

A budget

40
Q

This gives headquarters control over how the money is spent by subunits

A

Capital spending rules

41
Q

Which strategy would reflect the lowest level of performance ambiguity

A

Localization

42
Q

The control system where employees tend to control their own behavior and need little direct supervision, because they have elected to follow the forms and values of the firm is

A

Cultural controls

43
Q

Facilitating coordination, making it easier for top-level managers to bring about change, eliminating duplication of activities and making decisions consistent with organizational objectives are arguments for ______ of decision making

A

Centralization

44
Q

The ___ strategy may use a mix of centralization and decentralization depending on the pressures for local responsiveness and the need to coordinate a dispersed value chain and transfer core competencies. There is a high need for coordination when using this strategy

A

The transnational strategy

45
Q

What is the method of control where actions of subunits are directed by a system of rules and procedures?

A

Bureaucratic

46
Q

The _____ strategy is the strategy in which businesses centralize functions such as R&D and marketing functions, but decentralize operating decisions to subsidiaries

A

The international strategy

47
Q

A _____ strategy has firms operating with worldwide area structures, where operating decisions are decentralized to functionally self-contained country subsidiaries

A

Localization

48
Q

Integrating mechanisms are used by a firm to help ____

A

Achieve coordination between subunits

49
Q

These are used by a firm to help achieve coordination between subunits

A

Integrating mechanisms

50
Q

The first principle of successful organizational change is to unfreeze the organization though

A

Shock therapy

51
Q

The norms and value systems of a company make up the company’s ____ and are a source of organizational inertia

A

Culture

52
Q

This exists when the causes of a subunit’s poor performance are not clear

A

Performance ambiguity

53
Q

Two measures a company might use when refreezing an organization

A

Change hiring policies

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International Business Final (4 decks)

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