Which of the following is true of a product structure?

1.Which of the following is true of a product structure?A.It groups together jobs and activities being performed in the same location.B.It is used when there is a need to differentiate products or services in variouslocations.C.It groups together jobs and activities that are serving the same customers or clients.D.It clearly links costs, profits, problems, and successes in a market area with a centralpoint of accountability.E.It helps focus attention on the unique cultures and requirements of different nations.Answer: D

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Which of the following is true for a product structure?
What is meant by product structure?
Which of the following is not true for a product structure?
What is an example of product structure?

Learning Objective: 11.2Difficulty: ModerateAACSB: Analytical thinkingBloom’s Taxonomy: Knowledge1.Slice-It Inc., a fast food organization operating in many countries, varies its menusin different countries according to local tastes and preferences. It groupstogether employees and tasks working in the same location. Which of thefollowing structures is Slice-It Inc. using?

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Learning Objective: 11.2Difficulty: HardAACSB: Application of knowledgeBloom’s Taxonomy: Application1.Which of the following is true about the geographical structure?

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1. The manner in which organizations structure subunits and use coordination and control mechanisms to achieve their strategic goals is the

a. Organizational structure.
b. Organizational culture.
c. Degree of formalization.
d. Organizational design.

d. Organizational design.

2. The functional structure is considered most efficient when

a. An organization gets too large.
b. When customers need special functions.
c. When the organization is in the mature phase of the life cycle.
d. When organizations have few products.

d. When organizations have few products.

3. All of the following statements are true about the functional structure EXCEPT

a. In the functional structure, departments perform separate business functions such as marketing or manufacturing.
b. The functional structure is the simplest of organizations.
c. In small organizations, the functional structure is the least efficient of all structures.
d. Because functional subunits are separated from each other, coordination among the units can be difficult.

c. In small organizations, the functional structure is the least efficient of all structures.

4. One of the major reasons why companies choose a functional structure is because

a. It allows adapting products to country tastes.
b. It enables responding to the needs of different types of customers.
c. It helps balance the strategy with the organization design.
d. It helps achieve efficiency.

d. It helps achieve efficiency.

5. All of the following statements are true about product structures EXCEPT

a. The product structure is the most efficient of all structures.
b. Product organizations must still perform some functional tasks of a business.
c. The structure builds a department or subunit around a product .
d. Managers choose product structures when they believe that a product or a group of products is sufficiently unique to require focused efforts on one type of product or service.

a. The product structure is the most efficient of all structures.

6. The least efficient of the following structural options is

a. Product structure.
b. Functional structure.
c. Vertical structure.
d. Graphic structure.

a. Product structure.

7. Organizations that are designed with mixtures of structures that are the best to implement their strategies are

a. Product structures.
b. Geographic structures.
c. Hybrid structures.
d. Functional structures.

c. Hybrid Structures

8. When exports become a significant percentage of company sales and a company wishes greater control over its export operations, managers often create a separate

a. Export department.
b. Functional department.
c. Product department.
d. Liaison office.

a. Export department.

9. The structure adopted by companies in the early stage of internationalization is usually

a. Replica.
b. Network.
c. Export department.
d. Transnational subsidiary.

c. Export department.

10. The type of subsidiary that supports a multinational firm strategy based on location advantages is a/an

a. Export department.
b. Minireplica subsidiary.
c. Transnational subsidiary.
d. International division.

c. Transnational subsidiary.

11. The minireplica subsidiary

a. Copies the structure and strategy of companies located in the same country.
b. Mostly copies the structure and strategy of the parent company.
c. Replicates only minor parts of the parent's production technology.
d. Copies the structure of small foreign firms.

b. Mostly copies the structure and strategy of the parent company.

12. Transnational subsidiaries

a. Look pretty much like a domestic division of the parent company.
b. Often have different structures and functions in each location.
c. Exist near the border to facilitate exporting.
d. Serve mostly to coordinate international currency exchange.

b. Often have different structures and functions in each location.

13. The international division differs from the export department in that

a. The international division is usually larger and has greater responsibilities.
b. The international division has more extensive staff with international expertise.
c. Top management expects the staff of the international division to perform functions such as negotiating licensing and joint venture agreements, translating promotional material, or providing expertise on different national cultures and social institutions.
d. All of the above are true.

d. All of the above are true.

14. Which of the following are considered to be the structural building blocks for running a multinational?

a. International division
b. Metanational
c. Mini replica
d. Foreign subsidiaries

d. Foreign subsidiaries

15. Adopting strategies that include both concerns for local adaptation needs and concern for the economic and product development benefits of globalization is possible with the

a. Worldwide product structure.
b. Worldwide geographic structure.
c. Hybrid structure.
d. None of the above

c. Hybrid structure.

16. The worldwide geographic structure is usually considered best to implement a _____ strategy.

a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting

a. Multidomestic or regional

17. The worldwide product structure is usually considered best to implement a/an _____ strategy.

a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting

c. International

18. The most balanced structural solution to the national responsiveness versus global efficiency dilemma is

a. The transnational network structure.
b. The worldwide product structure.
c. Worldwide geographic structure.
d. The matrix structure.

d. The matrix structure.

19. All of the following statements are true about the worldwide matrix structure EXCEPT

a. To balance the benefits produced by geographic and product structures and to coordinate a mixture of product and geographic subunits, some multinationals create a worldwide matrix structure.
b. Unlike most hybrid organizations, the worldwide matrix structure is a symmetrical organization.
c. It has unequal lines of authority for product groups and for geographic divisions.
d. The matrix structure works well only when there are near equal demands from the environment for local adaptation and for product standardization with its associated economies of scale.

c. It has unequal lines of authority for product groups and for geographic divisions.

20. Which of the following structures best support strategies that emphasize global products and rationalization?

a. The functional structure
b. The matrix structure
c. The geographic structure
d. The product structure

d. The product structure

21. A __________ helps link the organization horizontally.

a. Control system
b. Coordination system
c. Cultural system
d. Centralized operations

b. Coordination system

22. The type of vertical control mechanism most often associated with a profit center is

a. Bureaucratic.
b. Output.
c. Cultural.
d. Decision making.

b. Output.

23. The type of control system favored by the transnational is

a. Bureaucratic.
b. Output.
c. Cultural.
d. Decision making.

c. Cultural.

24. _________ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.

a. Dispersed subunits
b. Specialized operations
c. Interdependent relationships
d. None of the above

a. Dispersed subunits

25. __________ help link the organization vertically, up and down the organizational hierarchy.

a. Coordination systems
b. Dispersed subunits
c. Control systems
d. Subunits

c. Control systems

26. Output control systems

a. Focus on managing behaviors, not outcomes, within the organization.
b. Represent the level in the organizational hierarchy where managers have the authority to make decisions.
c. Assess the performance of a unit based on results, not on the processes used to achieve those results.
d. Use the organizational culture to control the output and attitudes of employees.

c. Assess the performance of a unit based on results, not on the processes used to achieve those results.

27. Which of the following types of control system uses budgets, statistical reports, standard operating procedures, and centralized decision making to manage organizational processes?

a. Profit center
b. Bureaucratic control system
c. Decision-making control
d. Cultural control system

b. Bureaucratic control system

28. A permanent unit of the organization designed to focus the efforts of different subunits on particular problems is a

a. Task force.
b. Full-time integrator.
c. Liaison.
d. Team.

d. Team.

29. Temporary groups created to solve a particular organizational problem such as entering a new market are

a. Teams.
b. Liaisons.
c. Taskforces.
d. Full time integrators.

c. Taskforces.

30. Which of the following is NOT true regarding the use of control options by most multinationals?

a. Most multinationals use several types of coordination mechanisms.
b. Multinationals with export departments have very high need for coordination.
c. Matrix and transnational structures have very high needs for coordination.
d. For transnational networks, teams are increasingly virtual with members seldom meeting face-to-face.

b. Multinationals with export departments have very high need for coordination.

31. All of the following are TRUE about product structures EXCEPT

a. Product structure organizations must still perform functional tasks of a business.
b. In product structures, functional areas are concentrated in separate subunits.
c. Product structures are required when products or service are sufficiently unique to require different functional support.
d. All of the above are true.

b. In product structures, functional areas are concentrated in separate subunits.

32. Subunits of a multinational company located in other countries than the parent company's headquarters is known as

a. Functional divisions.
b. Foreign functional divisions.
c. Foreign subsidiaries.
d. International minireplica.

c. Foreign subsidiaries.

33. The basic issue (s) that need to be considered for organizational design are

a. Division of work.
b. Coordination.
c. Control.
d. All of the above

d. All of the above

34. A large, entrepreneurial multinational that is able to tap into hidden pockets of innovation, technology, and market know-how scattered around the world, especially in emerging markets is known as

a. A transnational.
b. A minireplica subsidiary.
c. A metanational.
d. A foreign subsidiary.

c. A metanational.

35. Which of the following control systems uses the organizational culture to control behaviors and attitudes of employees?

a. Cultural control systems
b. Decision-making control systems
c. Bureaucratic control systems
d. Output control systems

a. Cultural control systems

36. Which of the following is NOT one of the questions asked when designing an organization?

a. How should work be divided among the organization's subunits?
b. How should the work be coordinated among the various subunits?
c. How should the work of the various subunits be controlled?
d. How many subunits should the multinational have?

d. How many subunits should the multinational have?

37. Which of the following control systems focuses on managing behaviors of employees rather than outcomes?

a. Bureaucratic control systems
b. Budgets and standard operating procedures
c. Cultural control systems
d. None of the above

a. Bureaucratic control systems

38. Which of the following represents the strongest coordination mechanism?

a. Task forces
b. Teams
c. Liaison roles
d. Direct contact

b. Teams

39. Knowledge that usually resides within employees and is dependent on the organization's culture and context is

a. Explicit knowledge.
b. Knowledge management.
c. Tacit knowledge.
d. None of the above

c. Tacit knowledge.

40. Which of the following statements regarding explicit knowledge is FALSE?

a. Explicit knowledge can be easily codified.
b. Explicit knowledge can be found in records and other information repositories.
c. Explicit knowledge can be easily transferred from employee to employee.
d. Explicit knowledge usually resides within employees and is dependent on the organization's context and culture.

d. Explicit knowledge usually resides within employees and is dependent on the organization's context and culture.

52. One reason why multinationals should worry about organizational design is

a. new competition.
b. lack of environmental change or a way to produce change.
c. the need to redirect efforts toward exploring new markets and stop exploring existing markets.
d. organizational structures tend too often to be aligned with a firm's markets and intended strategy.

a. new competition.

53. As very small organizations grow to a point where no longer does everyone do the same thing and everything

a. it is important to not lose the ability of everyone to do the same thing by dividing work into specialized jobs.
b. coordination and control become a threat to not only further growth but also to survival.
c. an aligned organizational design may allow a quick response to altered conditions.
d. A and B above.

c. an aligned organizational design may allow a quick response to altered conditions.

54. A functional organization structure is all of the following EXCEPT

a. the simplest of organizations.
b. examples include marketing or manufacturing departments.
c. is typical of small business but is also used sometimes in large organizations.
d. is a description of an organization which functions properly in carrying out its mission.

d. is a description of an organization which functions properly in carrying out its mission.

55. In the evolution of a firm's internationalization, most companies never reach a

a. matrix structure.
b. transnational network structure.
c. hybrid structure.
d. metanational state.

d. metanational state.

56. Cultural control as explained in the text

64 terms

Amy-steed8

Which of the following is true for a product structure?

1. Which of the following is true of a global product structure? It provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions. It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.

What is meant by product structure?

Product structure is a hierarchical decomposition of a product, typically known as the bill of materials (BOM). As business becomes more responsive to unique consumer tastes and derivative products grow to meet the unique configurations, BOM management can become unmanageable.

Which of the following is not true for a product structure?

There is direct contact with customers during manufacturing of products is not true.

What is an example of product structure?

For example, if a company has a bakery division and clothing division, each of those product-based divisions will have its own sales department, marketing department, manufacturing department and other functional groups.