Answer the following questions and then press 'Submit' to get your score.
Question 1
What do organizational structures explain?
a] Who does what, where and when
b] The competitive advantage of the firm
c] Formal and informal reporting within the firm
d] The core competencies of the firm
Question 2
What are the advantages of the functional structure?
a] It enhances communication between top and low level managers.
b] It makes communication easy among people from different functions.
c] It makes communication easy among people from the same specialists.
d] It enhances team spirit throughout the organization.
Question 3
When is the international division structure appropriate?
a] When foreign operations are relatively small.
b] When foreign operations are relatively high.
c] When pressure to respond to local needs is high.
d] When pressure to respond to local need is low.
Question 4
When is the geographical division appropriate?
a] When economies of scale are necessary.
b] When customers' taste does not vary significantly across countries.
c] When cultural differences are very high.
d] When customers' taste varies significantly across countries.
Question 5
Typically, in a global product structure:
a] adaptation to local needs is high.
b] marketing is the most important function.
c] marketing is subservient to operations.
d] operations is subservient to marketing.
Question 6
Barlett and Ghoshal [1989] said that the matrix structure is:
a] "too simple for a complex environment".
b] "speeds decision making".
c] "prove all but unmanageable".
d] "easy to manage".
Question 7
A significant weakness of the multi-domestic arrangement is:
a] dual reporting system.
b] duplication of activities.
c] cumbersome structure.
d] does not respond to local needs.
Question 8
In transnational firms, managers must emphasize:
a] the importance of control systems.
b] formal hierarchies of the firm.
c] dependence between subsidiaries.
d] interdependence between subsidiaries.
Question 9
According to the Stopford and Wells model, a high degree of diversification and high level of foreign sales should lead the multinational firm to adopt:
a] Matrix structure
b] International division structure
c] Area structure
d] Global product structure
Question 10
The transnational structure is:
a] dominated by hierarchy.
b] not dominated by hierarchy.
c] designed for vertically integrated international firm.
d] appropriate for export firms.