Module 7 Vocabulary

Question 1

The formal way a company divides labor, groups employees, and assigns responsibilities

Answer 1

Organizational structure

Question 2

Companies completely owned or controlled by a parent company

Answer 2

Subsidiaries

Question 3

Large corporations made up of several combined companies, often formed through mergers and takeovers

Answer 3

Conglomerates

Question 4

Dividing organizational activities into smaller tasks

Answer 4

Division of labor

Question 5

A visual map of the roles and relationships within an organization and how functions and responsibilities are divided

Answer 5

Organizational chart

Question 6

Lines on an organizational chart showing the relationships within an organization

Answer 6

Vertical and horizontal linkages

Question 7

One employee should only report to one person

Answer 7

Unity of command

Question 8

Organizing a company’s people, tasks, and resources based on goods or services

Answer 8

Product departmentalization

Question 9

Organizing a company’s people, tasks, and resources based on the type of customer served

Answer 9

Market departmentalization

Question 10

Organizing a company’s people, tasks, and resources based on a geographic region

Answer 10

Geographic departmentalization

Question 11

An organizational structure dividing employees into departments based on business functions

Answer 11

Functional/departmental structure

Question 12

An organizational structure grouping employees into departments based on products, processes, or geographic regions

Answer 12

Divisional structure

Question 13

An organizational structure that combines more than one organizing perspective at once, such as combining geographic and product models

Answer 13

Matrix structure

Question 14

A newer type of organizational structure that includes a group of workers, with complementary skills, all working toward a common goal, such as a specific project

Answer 14

Team structure

Question 15

Organizational structures with many levels

Answer 15

Tall structure

Question 16

Organizational structures with few layers

Answer 16

Flat structure

Question 17

An independent division within a large company with responsibility for specific products or activities

Answer 17

Specific strategic business unit

Question 18

A company that operates in two or more countries

Answer 18

Multinational corporation

Question 19

The degree to which decision-making authority is concentrated at higher levels in an organization and business functions controlled in a central location

Answer 19

Centralization

Question 20

Companies with structures that limit decision-making to higher levels in the organizational hierarchy

Answer 20

Centralized companies

Question 21

Companies with structures that distribute the authority to make decisions to lower levels of employees who are closer to the problem

Answer 21

Decentralized companies

Question 22

The degree to which a company is able to use the same products and methods in multiple countries

Answer 22

Global integration

Question 23

The degree to which a company must customize its products and methods to meet the conditions in other countries

Answer 23

Local responsiveness

Question 24

An international commerce strategy that focuses on shipping domestic products to other countries

Answer 24

Export strategy

Question 25

A strategy for international commerce that does not customize products for local markets

Answer 25

Standardization strategy

Question 26

A strategy of international commerce that customizes products to each country

Answer 26

Multidomestic strategy

Question 27

An international commerce strategy that combines the aspects of standardization and multidomestic strategies

Answer 27

Transnational strategy