Chapter 4: End-of-Chapter Questions

1. An MNC operates in markets that span nations and cultures.

2. Uncertainty for an MNC is caused by the inability of the information system to provide the information that is needed to perform the management function.

3. MNC executives respond to uncertainty by building information systems that fit their administrative heritage and provide environmental information.

4. The book is not specific as to which structure would be the most complex. It would depend on the particular company—how large it is, the number of divisions and products, and so

on. However, worldwide functional divisions and the worldwide product divisions types of organizational structure would probably be the most challenging from a communications standpoint because separate networks would be established for each division and product. The international divisions structure would likely be the simplest because it is a single, separate network for the global operations; it is like a separate company. The geographic regions structure is not too complex because of the lack of linkages between the regions.

5. Since it is the responsibility of the information specialists to work with users when developing systems, the different MNC organizational structures enable the specialist to identify where the users are located.

6. The key word is coordination.

7. The global strategy appeals the most to executives who want to maintain control. The multinational strategy would appeal the least because it is essentially a “hands off’ strategy.

8. The transnational strategy requires a multinational development team.

9. A GIS is a CBIS that is used to manage a global business operation. The main difference would appear in the data communications hardware and software; they would generally be much more complex for the GIS than for a firm with operations localized within the home country.

10. The global business drivers define the type of support that is to be provided by the GIS— facilitate flexible operations, reduce risks, best utilize scarce supplies, and so on. The strategic plan for information resources would specify how these objectives would be achieved.

11. Figure 4.6 shows that the GBDs vary by industry.

12. The government of the subsidiary country can restrict imports of hardware and software, require that certain types of data be processed within the country rather than elsewhere, and permit only certain types of data to be transmitted into and out of the country.

13. If there are no hardware or software vendors in a country, or if the better ones are excluded for some reason, the situation will severely limit the ability of the MNC to obtain the computing technology that is needed.

14. Data is the key to global standardization since it is more likely to be constant from one country to another, and change little over time. Processes, on the other hand, can be unique and highly volatile.

Topics for Discussion

1. Answers will vary.

2. The ability of an information system to store data and make contents available quickly and easily contribute to the coordination advantages of flexibility in response to competitors, responding in one country to changes in another, and transferring knowledge. When the information system has a marketing research capability, data can be gathered on customer needs and distributed internally, producing the advantages of keeping abreast of market needs, and achieving and maintaining diversity in the firm’s products. When the information system enables management to do a better job of controlling operations, the advantages of reduced costs of operations and increased efficiency and effectiveness can be achieved.

3. Information specialist knowledge can include such topics as computer expertise, business fundamentals, systems theory, information use in problem solving, the systems development process, and systems modeling capability. Skills can include communications, analytical ability, creativity, and leadership.