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Ds, Ch. 15

(T/F) There are two global organization options: management is either centralized in the home country or distributed to local, foreign centers.
F
(T/F) The first step in establishing a corporate strategy and structure for globalization is to determine the appropriate technology platform.
F
(T/F) Global business drivers can be divided into two groups: general cultural factors and specific business factors.
T
(T/F) The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.
T
(T/F) The collapse of the Eastern block has speeded the growth of a world culture.
T
(T/F) Micromarketing describes the direct marketing of products to individuals rather than groups.
F
(T/F) A powerful strategic advantage for a globalized firm is lowered cost factors in production.
T
(T/F) Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.
F
(T/F) At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules.
T
(T/F) Globalization means that companies can be less concerned with the laws governing the movement of information.
F
(T/F) European countries have very strict laws concerning transborder data flows and privacy.
T
(T/F) The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information.
T
(T/F) To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country.
T
(T/F) With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets.
F
(T/F) Accounting practices can vary significantly from country to country.
T
(T/F) In international companies, English has become a kind of standard business language.
T
(T/F) In a multinational strategy, financial management is centralized while production and sales are decentralized.
T
(T/F) Global systems allow fixed costs to be amortized over a much smaller customer base.
F
(T/F) One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.
T
(T/F) Private networks may not provide the same level of quick and predictable response as VPNs.
F
A force in the environment to which businesses must respond and that influences the direction of the business is called a business
A) driver.
B) threat.
C) process.
D) matrix.
A
22) The major dimensions of international systems architecture include each of the following except
A) the global environment.
B) corporate global strategy.
C) technology platform.
D) transborder data flows.
D
General cultural factors driving global business are
A) global communication and transportation technologies, a global knowledge base, and global social norms.
B) the development of global markets, political stability, and a global workforce.
C) the rise of the global workforce, political stability, and a global knowledge base.
D) the rise of a global workforce, global economies of scale, and global production and operations.
A
Global coordination of all of the major business functions permits the location of business activity according to
A) social norms and values.
B) comparative advantage.
C) competitive threat.
D) knowledge base.
B
Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?
A) choosing a global strategy
B) organizing the global business structure
C) organizing the systems management
D) defining the global environment
D
Making judgments and taking action on the basis of narrow or personal characteristics is referred to as
A) localization.
B) cooptation.
C) particularism.
D) prejudicial.
C
Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?
A) Free Trade Agreement
B) European Union Data Protection Directive
C) United Nations Privacy Act
D) European Transborder Data Flow Act
B
General challenges and obstacles to global business systems are typified by
A) different technology standards, shortages of skilled consultants, and social expectations.
B) brand-name expectations, language differences, and commercial regulations.
C) different work hours, transborder data and privacy laws, and different technology standards.
D) different communications standards, language differences, and network reliability.
B
Which of the following is not a specific challenge to global business system?
A) shortages of skilled consultants
B) language differences
C) different telecommunication standards
D) different data transfer speeds
B
To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms
A) maintain a master database at their head offices.
B) develop a master system that meets the standards of all the countries concerned.
C) use microwave satellite transmission to move data.
D) develop separate systems within each country.
D
German companies
A) do not recognize the profit until the project is completely finished and they have been paid.
B) recognize profits before the project is finished.
C) recognize profits when the project is initialized.
D) do not recognize the profits until they have been formally audited.
A
Most large companies with overseas operations have inherited
A) recently built technology platforms for international systems.
B) batch-oriented reporting from independent foreign divisions to corporate headquarters.
C) transaction-oriented reporting based at the home office for overseas business.
D) global marketing systems developed domestically.
B
In terms of global business strategy and structure, a domestic exporter will use a policy of
A) some dispersed sales, with centralized production, accounting, human resources, and strategic management.
B) centralized production and accounting with decentralized marketing and human resources.
C) centralized production, accounting, marketing, and human resources.
D) dispersed production and marketing, with centralized accounting, human resources and strategic management.
A
Most companies pursuing a global strategy begin as
A) domestic exporters.
B) multinationals.
C) franchisers.
D) transnationals.
A
A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy.
A) domestic exporter
B) franchising
C) transnational
D) multinational
D
In terms of global business strategy and structure, a multinational company will use a policy of
A) mixed sales and marketing, with centralized production, accounting, human resources, and strategic management.
B) centralized production, accounting, marketing, human resources, with strategic management.
C) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
D) dispersed production and marketing, with centralized accounting and strategic management.
D
Which of the following is not one of the three kinds of organizational governance used by global companies?
A) centralized
B) decentralized
C) coordinated
D) localized
D
In terms of global business strategy and structure, a franchise company will use a policy of
A) centralized production, accounting, marketing, human resources, with strategic management.
B) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
C) dispersed production and marketing, with centralized accounting, human resources and strategic management.
D) dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting.
D
Which of the following is not one of the primary types of system configuration discussed in the chapter?
A) decentralized
B) duplicated
C) coordinated
D) networked
C
In terms of global business strategy, the governance of ________ firms has been likened to a federal structurestrong central management core of decision making, but considerable dispersal of power and financial resources.
A) domestic exporter
B) multinational
C) franchiser
D) transnational
D
Of the following, which is not one of the three central principles recommended in this chapter for a firm organizing itself for international business?
A) Organize value-adding activities along lines of comparative advantage.
B) Establish a single office responsible for international systems and a global CIO position.
C) Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
D) Develop and operate systems units at each level of corporate activityregional, national, and international.
C
In centralized systems
A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) systems development and operations occur totally at the domestic home base.
D
In duplicated systems
A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.
A
In networked systems
A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.
C
In decentralized systems
A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B) each foreign unit designs its own unique solutions and systems.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) foreign units design the solutions and systems used at the domestic home base.
B
Domestic exporters typically have highly ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
B
Multinational companies tend to have ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
D
Franchise companies have typically had ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
A
Transnational companies have tended to use a ________ systems configuration.
A) duplicated
B) centralized
C) networked
D) decentralized
C
The network systems structure is the most visible in ________ services.
A) production
B) financial
C) marketing
D) software design
B
Effective networked systems must have a
A) powerful telecommunications backbone.
B) culture of shared applications development.
C) shared management culture that crosses cultural barriers.
D) both B and C.
E) A, B, and C.
F) none of the above.
E
Two of the management challenges in developing global systems are listed in your text as
A) (1) managing the privacy concerns of different countries and (2) coordinating applications development.
B) (1) creating a financial structure that will operate internationally and (2) managing the privacy concerns of different countries.
C) (1) agreeing on common user requirements and (2) managing the privacy concerns of different countries.
D) (1) coordinating software releases and (2) introducing changes in business processes.
D
Which of the following is not one of the principal management challenges in developing global systems?
A) encouraging local users to support global systems
B) coordinating applications development
C) defining an acceptable test plan
D) agreeing on common user requirements
C
Logically related tasks to produce specific business results best defines
A) information systems.
B) business processes.
C) SOPs.
D) core competencies.
B
The way to identify core business processes is to conduct a
A) cost-benefit analysis.
B) work-flow analysis.
C) business process analysis.
D) feasibility analysis.
C
As a firm moves from local option systems to regional and global systems
A) agency costs increase.
B) coordination costs decrease.
C) transaction costs increase.
D) both transaction and agency costs increase.
A
Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?
A) only systems that support functions that are absolutely critical to the organization
B) core systems and worthwhile provincial systems
C) core systems and any financial systems that can be easily integrated with each other
D) financial and accounting systems
A
Based on your reading of the chapter, why should companies avoid creating an all-encompassing, new global system when moving towards global operations?
A) These may fail due to lack of visibility.
B) It is difficult to quantify and explain the benefits of information systems that are that large.
C) “Grand design” approaches typically fail to identify centers of excellence.
D) Opposition is strengthened because of requirements for huge resources.
D
The ability of global systems to optimize the use of corporate funds over a much larger capital base means that
A) capital in a surplus region can be moved efficiently to expand production of capital-starved regions.
B) capital costs can be accounted or spread over a larger base of constituents.
C) costs can be amortized over a larger customer base.
D) value chains can be synchronized more effectively.
C
Which of the following is not one of the main benefits to implementing global systems?
A) superior management and coordination
B) vast improvements in operation
C) new economies of scale at production facilities
D) reduced hardware costs
D
When developing a global system, bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called
A) cooptation.
B) change management.
C) implementation.
D) advocacy.
A
A global firm can develop transnational centers of excellence as an effective technique to
A) ensure connectivity between regional systems.
B) encourage user support of global systems.
C) effectively identify global business processes.
D) develop a merit-based hierarchy among regional groups.
C
In relation to global systems building, the Internet
A) allows the seamless flow of information through the enterprise.
B) affords local groups stable broadband access.
C) has reduced some networking problems.
D) all of the above.
C
A critical necessity for ensuring the integration of local systems into a global system is
A) adherence to data and technical standards.
B) use of standard hardware at the local level.
C) use of standard user software at the local level.
D) all of the above.
A
VPNs
A) use the public Internet for communications.
B) may not be able to support large numbers of remote users, due to the variable traffic on the Internet.
C) provide many of the same services as private networks.
D) all of the above.
D
Which of the following is not one of the principal problems of international networks?
A) network capacity
B) poor quality of international service
C) network standards
D) regulatory constraints
C
Sixty-eight percent of the world’s mobile phone subscriptions are in
A) developing countries.
B) Europe.
C) the United States.
D) the United States and Canada.
A
Software localization is the process of
A) translating a user interface into a second language.
B) converting software programming to run on a different platform.
C) converting software to operate in a second language and with local conventions.
D) modifying software so that it can be adopted in other countries without engineering changes.
C
Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis?
A) TPS systems
B) EDI systems
C) CRM systems
D) none of the above
B
The chapter outlines three steps in developing an effective global system solution. Which of the following is not one of these steps?
A) Identify outdated legacy systems to be replaced.
B) Identify the core systems to coordinate centrally.
C) Choose a developmental approach: incremental, evolutionary, or other.
D) Define the core business processes.
A

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