Free GAQM CITM-001 Practice Exam with Questions & Answers | Set: 3

Coordination is the process of aligning and integrating the activities, resources, and efforts of different units or individuals within an organization or a network of organizations. Coordination is a major problem for the global firm because it involves managing the complexity, diversity, and uncertainty of operating across multiple countries, cultures, and markets. Global firms face various challenges in coordinating their strategies, structures, systems, processes, and people, such as:

• Balancing the need for global integration and local responsiveness, which requires finding the optimal degree of standardization and adaptation of products, services, policies, and practices across different regions and markets.
• Managing the trade-offs between centralization and decentralization, which involves deciding how much authority and autonomy to delegate to the local units versus retaining at the headquarters or regional hubs.
• Fostering collaboration and communication across geographical, functional, and cultural boundaries, which requires overcoming the barriers of distance, time zones, languages, and norms.
• Leveraging the benefits of diversity and avoiding the pitfalls of fragmentation, which entails creating a shared vision, values, and culture that can unify the diverse and dispersed workforce and stakeholders.
• Coping with the environmental turbulence and uncertainty, which demands developing the capabilities to sense, respond, and adapt to the changing customer needs, competitor moves, and regulatory requirements.

Coordination is essential for the global firm to achieve efficiency, effectiveness, innovation, and competitiveness in the global market. However, coordination is not easy or costless, as it requires investing in various mechanisms and tools, such as:

• Formal structures and systems, such as organizational design, reporting lines, performance measurement, and control systems, that define the roles, responsibilities, and relationships among the different units and individuals.
• Informal practices and processes, such as culture, norms, values, and routines, that shape the behaviors, attitudes, and interactions of the organizational members.
• Information and communication technologies, such as intranet, email, video conferencing, and social media, that facilitate the exchange of information and knowledge across the organization.
• Human resource management, such as recruitment, training, development, compensation, and motivation, that attract, retain, and develop the talent and skills of the global workforce.
• Coordination by principles, such as mission, vision, strategy, and goals, that provide the direction, guidance, and alignment for the organization.

References: Practice coordination by principles: a contemporary MNC approach to …, Coordination Problems - Definition and examples — Conceptually, Emergence of Coordination in Growing Decision-Making … - Hindawi.

Information derived from processing transaction reduces uncertainty about a firm’s order backlog or financial position because it provides a quantitative and forward-looking measure of demand. Order backlog is the amount of orders that a firm has received but not yet fulfilled. It reflects the expected future revenue and cash flows of the firm, as well as its ability to meet customer needs and expectations. Order backlog can also indicate the competitive position and market share of the firm, as well as its operational efficiency and capacity utilization. Therefore, disclosing order backlog can help stakeholders such as investors, analysts, managers, and regulators to assess the firm’s performance and prospects more accurately and reliably. References: Sample Exam - GAQM, page 4; Implications of Disclosing Order Backlog, page 1-2; Backlog Definition, Implications, and Real-World Examples - Investopedia

Knowledge is a strategic resource for many organizations because it enables them to create value, innovate, and compete in the knowledge economy. Knowledge management is the process of acquiring, creating, sharing, and applying knowledge to achieve organizational goals and objectives. Knowledge strategies are the plans and actions that align the knowledge resources and capabilities of an organization with its intellectual requirements and strategic direction. A knowledge strategy defines how anorganization intends to use knowledge as a source of competitive advantage and how it will manage its knowledge assets and processes effectively and efficiently. References:

• Knowledge Strategies - Cambridge University Press & Assessment1
• Strategic knowledge management: theory, practice and future challenges - Emerald Insight2
• Managing organizational knowledge as a strategic asset - Emerald Insight3

Development cost is the type of cost that is considered as actual costs of analysis, design, and installation for the system. Development cost includes the expenses incurred during the planning, designing, building, testing, and deploying of a system. Development cost is usually estimated before the start of a project and is used to measure the feasibility and profitability of a system. Development cost is also used to monitor the progress and performance of a project and to control the scope and quality of a system. References: CITM Course Outline, Module 4, Corporate IT Strategy, page 9. CITM Training Course, Cost, page 14. CITM Certification Overview, Exam Information, Course Outline, Module 4.