Question

Over time, Google grew from an Internet search company to a global mass of related and unrelated businesses operating around the globe. Google’s founders decided to give the organization a new name, Alphabet, to reflect its current diversity. They also gave it a new structure that would allow the highly specialized operations to function interdependently, meaning that there is flexibility and some autonomy but also unification and coordination. What type of structure is Alphabet using?

	a.	International divisions
	b.	Global geographic structure
	c.	Transnational model
	d.	Global product structure

Initially, you thought moving into the Chinese market would be a snap. The technological components you manufacture are universal, so there is no need for you to adapt your products to local needs. You thought it would be as simple as setting up a distribution center and a sales force. But now the Chinese government has hit you with huge fines because, they say, you’ve failed to secure the proper licenses and pay appropriate tariffs. You’re wondering what else you’ve done wrong. What can you do to cope with the increased complexity stemming from your move into China?

	a.	Establish an intercultural engineering team
	b.	Set up boundary-spanning legal and financial departments within the Chinese distribution center
	c.	Improve your cultural intelligence with language and customs training for yourself and all managers
	d.	Withdraw from the Chinese market

Over the years, Phoenix Electronics has grown through international acquisitions. The organization’s many businesses are grouped into three geographic units: North America, South America, and Asia. Unfortunately, the three division presidents don’t communicate, often compete for resources, and usually fight for dominance in the eyes of the CEO. What is the primary benefit Phoenix would get from establishing a global coordination group at the organization’s headquarters?

	a.	Better decision making and control
	b.	Product innovation
	c.	Greater economies of scale
	d.	Localized product adaptation

As the product manager for the pudding product line of a growing snack foods manufacturer in the U.S., you were excited to learn that senior leadership is thinking about going global. However, initial research into new markets has revealed that consumers in Great Britain think your puddings are too sweet, while consumers in Bangladesh think your products aren’t sweet enough. Plus, the target audience changed depending on the market, which means a unique marketing strategy for each. You’re starting to doubt that entering foreign markets will work for your product and others made by your organization. Which strategy makes the most sense for your organization to use to expand globally?

	a.	Standardization strategy
	b.	Globalization strategy
	c.	Multidomestic or localization strategy
	d.	Glocalization strategy

Your organization, which is located in the U.S., manufactures inexpensive cell phones. In recent years, competition and changing consumer preferences in the domestic market have driven sales down, which is why you’re considering entering the African market, where the demand for inexpensive cell phones is high. Which of the following provides the strongest motivation for you to expand globally?

	a.	Innovation
	b.	Economies of scope
	c.	Low-cost production factors
	d.	Economies of scale

The little sandwich shop founded by your grandfather 50 years ago has turned into a vast network of franchised sandwich shops across the U.S. As the current CEO, you’d like to see the organization continue to grow into foreign markets, yet you’re aware that consumers in some markets won’t be interested in some of the chain’s standardized menu items. You’re wondering if you can capitalize on the successful structure and reputation you’ve established while appealing to consumers outside the U.S. Which strategy makes the most sense for your organization to use to expand globally?

	a.	Multidomestic or localization strategy
	b.	Globalization strategy
	c.	Standardization strategy
	d.	Glocalization strategy

As the Chief Product Officer of an organization that produces personal and home care items, you are always on the lookout for growth opportunities. Last year, your organization decided to market its laundry detergent—one of your best-selling products across Europe—in several African nations, but sales have been dismal. The product manager hired a market research firm to find out why, and it turns out that consumers in that market object to the packaging, the scent, and the price. Despite this failure, you still believe there is a high demand for detergent products like yours in Africa, so what could you do apply your organization’s knowledge to this market?

	a.	Conduct an advertising campaign to educate African consumers on the benefits of your product
	b.	Use reverse innovation to develop a laundry detergent more suitable to local needs and preferences
	c.	Invest in a home care manufacturing organization located in Africa
	d.	Make minor modifications to the product that you think will be more appealing to African consumers

You are the CEO of a global financial services organization with more than 100,000 employees operating in nearly 95 countries. You recognize the need for flexibility and autonomy among the different operating units, yet you want to unify and coordinate the organization’s efforts so you’ve chosen to adopt a transnational model. How will you succeed in coordinating worldwide units?

	a.	By decentralizing all functions among the many geographically dispersed operations
	b.	By creating and communicating a common strategic vision and values
	c.	By encouraging subsidiary managers to share strategies and innovations across the corporation
	d.	By emphasizing vertical communications through the hierarchical structure

Answer 1

1. Over time, Google grew from an Internet search company to a global mass of related and unrelated businesses operating around the globe. Google’s founders decided to give the organization a new name, Alphabet, to reflect its current diversity. They also gave it a new structure that would allow the highly specialized operations to function interdependently, meaning that there is flexibility and some autonomy but also unification and coordination. What type of structure is Alphabet using?

b) Global Geographic Structure

2. Initially, you thought moving into the Chinese market would be a snap. The technological components you manufacture are universal, so there is no need for you to adapt your products to local needs. You thought it would be as simple as setting up a distribution center and a sales force. But now the Chinese government has hit you with huge fines because, they say, you’ve failed to secure the proper licenses and pay appropriate tariffs. You’re wondering what else you’ve done wrong. What can you do to cope with the increased complexity stemming from your move into China?   

b) Set up boundary-spanning legal and financial departments within the Chinese distribution center

3. Over the years, Phoenix Electronics has grown through international acquisitions. The organization’s many businesses are grouped into three geographic units: North America, South America, and Asia. Unfortunately, the three division presidents don’t communicate, often compete for resources, and usually fight for dominance in the eyes of the CEO. What is the primary benefit Phoenix would get from establishing a global coordination group at the organization’s headquarters?

a) Better decision making and control

4.  As the product manager for the pudding product line of a growing snack foods manufacturer in the U.S., you were excited to learn that senior leadership is thinking about going global. However, initial research into new markets has revealed that consumers in Great Britain think your puddings are too sweet, while consumers in Bangladesh think your products aren’t sweet enough. Plus, the target audience changed depending on the market, which means a unique marketing strategy for each. You’re starting to doubt that entering foreign markets will work for your product and others made by your organization. Which strategy makes the most sense for your organization to use to expand globally? d) Glocalization strategy