Chapter 15: Designing a Global Organization

1. In the ‘multi-business global product division’ organizational model (choose both that apply):

Local subsidiaries report to a regional corporate headquarters Functional activities are coordinated at corporate headquarters Each division is responsible for its profit and losses Local autonomy of subsidiaries is dependent upon the global organization of each division  

2. The geographical organizational models are most suitable for:

Single business companies Producers of low-cost standardized products or services Industries in which customers across the world exhibit strong divergent needs and tastes Industries with high potential for economies of scale Segments within multi-business firms  

3. Which of the following factors describe the advantages of matrix structures (choose both that apply)?

Simplicity Dilution of responsibility Dual focus of integration and responsiveness Forcing collaboration  

4. What is the key characteristic of the transnational model of organization?

It is simple It relies on management processes and culture Global managers are given more power than local managers It is another way of defining a ‘matrix’ organization  

5. What is the role of ‘initiator’ regional headquarters?

Facilitating relationships with local governments Helping business development Focusing on administrative tasks Financing local subsidiaries Coordinating activities across subsidiaries