GE Has Recently Reorganized from Eleven Businesses Down to Six

question 46

Multiple Choice

GE has recently reorganized from eleven businesses down to six core businesses. The purpose of this reorganization is to transfer core competencies in different types of technologies among GE's businesses. This is an example of

• A) increasing market power through vertical integration.
• B) efficient internal capital allocation.
• C) a focus on financial economies.
• D) increasing corporate relatedness.

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Definitions:

Informal Communication

A type of communication that occurs outside official channels without formal procedures or structure.

Systems/Contingency

A theory in organizational behavior that posits the effectiveness of a management approach is contingent upon the internal and external environment.

Virtual Organization

A business model that operates online, often without a traditional physical presence, relying heavily on information and communication technologies.

Temporary Venture

A project or enterprise undertaken for a limited duration, often to achieve a specific goal or address a particular need.