Why Do Changes in Company Strategy Often Require Changes in the Way

question 16

Multiple Choice

Why do changes in company strategy often require changes in the way an organization is structured?

• A)Structure dictates how resources will be obtained.
• B)Structure dictates how money is spent.
• C)Structure dictates authority over projects.
• D)Structure dictates how goals and objectives will be established.
• E)Structure dictates strategy.

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Definitions:

Total Cost of Ownership

The comprehensive assessment of the direct and indirect costs associated with the purchase and operation of a product or system over its entire lifespan.

Centralization

A process where decision-making authority is concentrated at a single point in the organization, often at the top management level.

Buying Specialization

A procurement approach where purchasing responsibilities are divided amongst team members based on specific categories of goods or services.

Purchasing Consortium

A group of companies or organizations that join together to pool their purchasing power, aiming to negotiate better terms and prices from suppliers.