D080 Module 7: Organizational Structures in International Business Quiz latest updated exam questions with acccurate answers

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Stanley & Sons is based in the United States and produces performance fabrics that are used in the construction industry. Its products have been revolutionary for enabling construction companies to build highways in mountainous areas, mostly in the U.S. and Canada. The company was started 15 years ago in North Carolina by Jack Stanley and his two sons.

For the past two years, the growth of their company has encouraged them to think about restructuring in order to meet increasing demand for their products. Currently, the company produces 10 types of fabrics that help with soil erosion, which is a by-product of highway construction. The processes used to manufacture the different types of fabric are mostly the same, and Jack and his sons handle most of the business decisions. The company employs 50 workers on the production floor that is overseen by Jack and his sons. Because everything funnels through Jack and his sons, they are feeling overwhelmed, and the company is not being as efficient as it needs to be. Stanley & Sons wants to departmentalize employees into functions.

In addition to figuring out the best organizational structure, Stanley & Sons is contemplating which steps to take to grow the company outside of the U.S. and Canada. Stanley & Sons is thinking about starting up a new manufacturing facility in Germany and is considering using a centralized decision-making method at that location. They are not sure if they should incur large amounts of debt in order to open a facility in Germany or if they should go in a different direction. They believe that providing their products to construction companies in Germany will lead to further international growth. Stanley & Sons is considering using an international standardization business strategy.

Q1: Which organizational structure is appropriate for forming the departments for Stanley & Sons?

A. Teams

B. Matrix

C. Functional

D. Divisional

C. Functional

Based on the fact that manufacturing processes are the same and they want to departmentalize employees into functions, a functional structure would be the best fit.

Q2: Which structure is Stanley & Sons using to control the structural hierarchy at a low level?

A. Functional structure

B. Tall structure

C. Matrix structure

D. Flat structure

D. Flat structure

The flat structure controls the hierarchy at a low level with only a few layers between frontline employees and the top level.

Q3: What is an advantage of using the decision-making method proposed for a facility in Germany?

A. Operations would be customer-centered.

B. Employees would feel empowered.

C. Decision-making processes would be consistent.

D. Business would be flexible to meet local needs.

C. Decision-making processes would be consistent.

An advantage of a centralized decision-making method is consistency across different international divisions.

Q4: Which business strategy should Stanley & Sons use to meet goals if leaders choose not to create an international division in Germany but they would still like to serve German customers?

A. Transnational

B. Export

C. Standardization

D. Multidomestic

B. Export

This strategy would be used by Stanley & Sons if leaders decided to focus on their production facility in North Carolina.

Q5: What is the effect on global integration and local responsiveness if Stanley & Sons chooses to use an international standardization business strategy?

A. Low global integration and high local responsiveness

B. High global integration and high local responsiveness

C. Low global integration and low local responsiveness

D. High global integration and low local responsiveness

D. High global integration and low local responsiveness

This combination of the two would represent a standardized strategy.