Chapter 12

Question 1

Strategy

Answer 1

A planned set of actions that managers employ to make best use of the firm’s resources and core competencies to gain competitive advantage

Question 2

Visionary leadership

Answer 2

A quality of executive management that provides inspirational guidance and motivation to personnel, leading the firm to a better future

Question 3

Organizational Culture

Answer 3

The pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt

Question 4

Organizational processes

Answer 4

Managerial routines, behaviors, and mechanisms that allow the firm to function as intended

Question 5

Global team

Answer 5

An internationally distributed group of employees charged with a specific problem-solving or best-practice mandate that affects company operations, or a major aspect of company operations, worldwide

Question 6

Multidomestic industry

Answer 6

An industry in which competition takes place on a country-by-country basis

Question 7

Global industry

Answer 7

An industry in which competition is on a regional or worldwide scale

Question 8

Global integration

Answer 8

Coordination of the firm’s value-chain activities across countries to achieve worldwide efficiency, synergy, and cross-fertilization in order to take maximum advantage of similarities between countries

Question 9

Local responsiveness

Answer 9

Management of the firm’s value-chain activities on a country-by-country basis to address diverse opportunities and risks

Question 10

Home replication strategy

Answer 10

An approach in which the firm views international business as separate from, and secondary to, its domestic business

Question 11

Multidomestic strategy

Answer 11

An approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness

Question 12

Global Strategy

Answer 12

An approach in which headquarters seeks substantial control over its country operations in order to minimize redundancy and maximize efficiency, learning, and integration worldwide

Question 13

Transnational strategy

Answer 13

A coordinated approach to internationalization in which the firm strives to be relatively responsive to local needs while retaining sufficient central control of operations to ensure efficiency and learning

Question 14

Organizational structure

Answer 14

Reporting relationships inside the firm that specify the links between people, functions, and processes

Question 15

Export department

Answer 15

A unit within the firm charged with managing the firm’s export operations

Question 16

International division structure

Answer 16

An organizational design in which all international activities are centralized within one division in the firm, separate from domestic units

Question 17

Geographic Area structure

Answer 17

An organizational design in which management and control are decentralized to the level of individual geographic regions

Question 18

Product structure

Answer 18

An arrangement in which management of international operations is organized by major product line

Question 19

Functional structure

Answer 19

An arrangement in which management of the firm’s international operations is organized by functional activity, such as production and marketing

Question 20

Global matrix structure

Answer 20

An arrangement that blends the geographic area, product, and functional structures to leverage the benefits of a purely global strategy while keeping the firm responsive to local needs