Emerson Electric Formed an Operating Group of Several Otherwise Autonomous

question 22

Multiple Choice

Emerson Electric formed an operating group of several otherwise autonomous business units that make different types of electrical motors and tools.By sharing production facilities,marketing activities and a common sales force,the group was able to reduce the costs of both per-unit production and marketing.Emerson Electric is trying to:

• A)gain operating synergies through sharing resources
• B)preserve its position in established product markets
• C)generate excess cash to support its product and market development efforts
• D)devote a proportion of resources to the development of new product markets

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Definitions:

Coordinate Labour

The organization and alignment of worker efforts and tasks to ensure efficient and effective achievement of collective goals.

Achieve Goals

The process of setting targets and successfully reaching them through planning and effort.

Top Executives

Individuals who hold the highest management positions in an organization, responsible for overall strategic decisions.

Environmental Constraints

Refers to the physical or legal limitations that impact the operations and decisions of an organization or individual.