ULUSLARARASI İŞLETME - Deneme Sınavı - 5

Strategy as total organizational process is an emerging view while the others are traditional.

The international division structure reduces the CEO’s burden of the direct operation of overseas subsidiaries and domestic operations.

Organizations with diverse products and services prefer product structure. Many international businesses use global product structure. Products and product groups are central to this organizational structure. All international operations are also organized around these products and product groups. Organizations that adopted a global product structure may also have regional experts. Thus, they can determine the region-specific needs more accurately and respond to these needs faster. Following the global product structure, each product group can make their own operational decisions, evaluate investment opportunities, and market-relevant products and services.Organizations with diverse products and services preferm to use a product structure.

Global area structure is a commonly preferred organizational structure by international businesses. When businesses operate in different geographical areas with different specifications, the global area structure offers a few advantages for international businesses. In this structure, businesses are organized around countries or country groups. The departments and divisions are responsible for the whole functions and products in a given geographical area.

A matrix structure is a hybrid organizational design option that blends two organizational responsibilities, such as functional structure and product structure or regional structure and product structure .

Efficiency refers to how an organization utilizes its resources while achieving its goals. If organizational resources are wasted or kept idle, then it could be said that efficiency is low. The correct answer is B.

Exploratory learning refers to the learning of product and process development skills that are entirely new to the current experiences of the firm. Search, variation, risk-taking, experimentation, play, flexibility, discovery, and innovation are among the keywords in exploratory learning activities.  The correct answer is B.

Exploitative learning refers to learning from the knowledge and skills that are familiar with the organizations’ current experiences. The correct answer is D.

In market development strategies, businesses modify the characteristics of their products and services. By doing so, modified products and services enable the organization to enter new markets. For example, an aircraft manufacturer that manufactures passenger aircrafts modifies its aircraft to carry air cargo that, in return, enables the manufacturer to sell its aircraft to logistics companies. The correct answer is C.

The diversification strategy is generally known as the riskiest strategy in the matrix. This is because, according to diversification strategy, businesses change both their product mix and their markets (Ansoff, 1957: 114). Simultaneous changes in the market and product mix cause this strategy to be known as risky.  The correct answer is D.

Porter (1980), in his pioneering book Competitive Advantage, identifies three generic strategies for businesses. Each of these strategies aims to help organizations achieve a competitive advantage. These three strategies are cost leadership, differentiation, and focus. The correct answer is C.

Global area structure is a commonly preferred organizational structure by international businesses. When businesses operate in different geographical areas with different specifications, the global area structure offers a few advantages for international businesses. In this structure, businesses are organized around countries or country groups (Figure 4.9). The departments and divisions are responsible for the whole functions and products in a given geographical area. The correct answer is A.

A matrix structure is a hybrid organizational design option that blends two organizational responsibilities, such as functional structure and product structure or regional structure and product structure . For example, if the structure is a combination of regional and functional structures, then the structure is developed to combine the geographic support for - global integration and the one for local responsiveness; also it can be used to utilize personnel skills and experience shared across functional and divisional structures (Deresky, 2014: 267). In the matrix structure, the lines of responsibility are drawn both vertically and horizontally. The correct answer is E.

The matrix structure enables an organization to focus on its capabilities and experiences and share its resources between its divisions, which, in turn, leads to efficient use of organizational resources. Especially when the environmental conditions call for specialization, innovation, and meeting regional needs, the matrix structure could be an excellent organizational design option. On the other hand, there are a few disadvantages of the matrix structure. First, it may lead to problems in authority. The dual authority that is inherent in the matrix structure may cause problems for both employees and supervisors since subordinates report to two supervisors in the structure. When not appropriately managed, the matrix structure is prone to communication problems. Finally, the matrix structure is a costly structure. Offering constant training to the employees and supervisors, and establishing an effective communication system are the essential for a strong structure. The correct answer is E.

Cost Leadership Strategy The focus of the cost leadership strategy is to reduce the costs of the business while maintaining quality. This strategy requires the business to achieve costs lower than its competitors. The correct answer is A.

The BRIC countries (Brazil, Russia, India, and China) were identified as the future major players in the world economy in the early 2000s.

Ethnoscapes are the people mobile throughout the globe, such as immigrants, tourists, guest workers.

Hofstede’s cultural dimensions include the following: individualism/collectivism, power distance, masculinity/femininity, uncertainty avoidance, long/short-term orientation, and indulgence/restraint.

The opposite of market capitalism is centrally-planned socialism, where the state decides on what to produce and how much to produce.

Differential advantage refers to the ability to provide better market offerings than the competitor’s offerings.