Projects to Maximize Creativity Answer Key

Question 1 of 10 Which organizational structure simultaneously uses functions and divisional structure so that functional employees can be placed on different projects to maximize creativity? Divisional Departmental Matrix Teams Correct! This structure simultaneously uses functional and divisional structures. Question 2 of 10 A multinational corporation (MNC) headquartered in Belgium makes and sells dark chocolate truffles in its own branded retail stores in Paris, Geneva, and London. What is the global strategy used by this international business? Transnational strategy Export strategy Standardization strategy Multidomestic strategy Correct! The MNC headquartered in Belgium makes and sells one product, dark chocolate truffles, in its own branded retail stores in Paris, Geneva, and London. The MNC is using the standardization strategy. Question 3 of 10 A company is thinking about including online shopping to improve its ability to reach global markets. It is closely examining the challenges associated with using these web strategies before adopting the new process. Which challenge is associated with this change? Entry barriers to the global market More competitors in other industries Loss of inventory Communication barriers with global audiences Correct! Reaching more people in global markets will cause challenges in communication with diverse global audiences, especially if the local language and images must change with each country. Question 4 of 10 A company desires to scale its international business by taking over established organizations in the intended markets. Which strategy will allow this process to occur quickly? Franchising Acquisition Licensing International joint venture Correct! Acquisitions are appealing to companies due to the ability to have quick access to take over foreign assets for new market entry. Question 5 of 10 The chief executive officer (CEO) of a company wants to expand into the global market and has considered the costs and benefits of a variety of business strategies that would enable this goal, including direct foreign investment. After careful analysis, the CEO recommends licensing local distributors as the best option for the company to achieve this expansion. What is an advantage of using this approach? Shared costs Lower financial risk Control by local distributors Gain economies of scale Correct! Licensing as a strategy for entering foreign markets lowers financial risks. Question 6 of 10 Which term describes the practice in which a parent firm is obligated to provide its brand name, specialized equipment or services, and sometimes startup costs to another firm in return for an annual fee? Joint venture Franchising Export strategy Licensing Correct! This is the definition of franchising. Question 7 of 10 Which of Hofstede’s cultural dimensions refers to the extent that people think of themselves as members of a group or collective rather than as discrete individuals? Individualism versus collectivism Uncertainty avoidance Masculinity versus femininity Power distance Correct! In collectivist societies, group goals take precedence over individuals' goals. Question 8 of 10 What is true of expatriates? There is no risk of expatriate failure when companies assign expatriates to work in an overseas office. The culture shock that employees face upon repatriation could cause the company to lose expatriates if not handled properly. Expatriates bring inconsistencies of a company’s HR policy to international divisions. Hiring expatriates is relatively cheaper than hiring from the local labor force. Correct! This is a true statement of expatriates. Question 9 of 10 Which national cultural dimension in global business refers to how a culture ranks on values of assertiveness and materialism? Masculinity Long-term orientation Uncertainty avoidance Power distance Correct! Masculinity refers to how a culture ranks on values of assertiveness and materialism. Question 10 of 10 Which cultural dimension in global business refers to the degree of freedom that societal standards give to people in satisfying their needs? Masculinity Uncertainty avoidance Long-term orientation Indulgence Correct! Indulgence refers to the degree of freedom that societal standards give to people in satisfying their needs.