Because Controlling the Production of Many Different Foods Within the Same

question 39

Multiple Choice

Because controlling the production of many different foods within the same manufacturing unit proved to be difficult and resulted in increasing costs, a packaged food manufacturer created separate product divisions that make frozen vegetables, frozen entrees, canned soups, and baked goods. This design decision will ________ within the organization.

• A) decrease horizontal differentiation
• B) increase vertical differentiation
• C) increase horizontal differentiation
• D) decrease vertical differentiation

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Definitions:

Capacity

The maximum output that an entity can produce under normal conditions over a certain period of time.