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. Centralization

b. Decentralization

c. Mediation

d. Local control

3. The most popular organizational structure in international business today is?

a. Matrix

b. Geographic Division

c. Product division

d. 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?

  1. Decisions should be made by senior managers who have the experience, expertise, and judgment to find the best course of action for the company.
  2. Decisions should be made by the employees that are closest to and most familiar with the situation.
  3. The effective configuration and coordination of the value chain depends on headquarters letting local managers deal with local market conditions.
  4. 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?

  1. Facilitates coordination of the value chain
  2. Ensures that decisions are consistent with strategic objectives
  3. Decisions made by those who directly deal with customers, competitors, and markets.
  4. Reduces the risks that lower-level employees make costly, wrong decisions.

Q3. The trend in most companies is toward more _____ structures.

  1. decentralized
  2. centralized
  3. transitional
  4. None of the above

Q4. On how many continents is Johnson and Johnson present?

  1. 3
  2. 5
  3. 6
  4. 7

Q5. A matrix organization does which of the following?

  1. Institutes overlaps among functional and divisional forms
  2. Gives functional, product, and geographic groups a common focus
  3. Has dual reporting relationships rather than a single line of command
  4. All of the above

Answers:

1) A

2) C

3) A

4) 6

5) D

Rebecca Piper

Quiz Questions Chapter 15

1.)Johnson and Johnson has a very ______structure.

a)decentralized

b)centralized

c)unorganized

d)paralyzed

2.)A disadvantage of centralization is:

a)facilitates coordination of the value chain

b)encourages lower-level managers to take initiative

c)discourages lower-level managers to take initiative

d)motivates employees

3.)Companies such as Exxon Mobile and British Petroleum use a ______structure.

a)matrix

b)functional

c)geographic

d)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)Johnson & Johnson has a______autonomy worldwide.

a)decentralized

b)distributed

c)centralized

d)oligopoly

2)An advantage of a decentralized power is:

a)Puts the organization at risk if many bad decisions are made.

b)Encourages lower-level managers to exercise initiative.

c)Impedes cross-unit coordination and capture of strategic fits.

d)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 matrix organization :

a)Institutes overlaps among functional and divisional forms

b)Gives functional product, and geographic groups a common focus

c)Has dual reporting relationship rather than a single line of command.

d)All of the above

5)GE was founded in:

a)Germany

b)Norway

c)Hungary

d)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.)Geographic

b.)Matrix

c.)International

d.)Product

3.)A matrix organization…

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

4.)Coordination systems….

a.)link the various activities of a company

b.)help CEO’s coordinate the organization structure of the company

c.)tell transfer vehicles

d.)all of the above

5.)In what country was the company lighting company Tungsram located in?

a.)Poland

b.)Germany

c.)Hungary

d.)CzechRepublic

Anwers: 1. )b

2.) a

3.) d

4. )a

5.) c