Custom Leather (Scenario) Lamia Has Been Hired as a Consultant for XYZ Consulting

question 31

Multiple Choice

Custom Leather (Scenario)
Lamia has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Inc., a manufacturer of high- end leather furniture. Custom Leather was founded over a decade ago with the idea that great looking, comfortable leather furniture could be custom made and delivered to customers in 30 days.
Traditionally, retailers stock leather sofas to satisfy the desire to receive new furniture fast-limiting the choice of colors and style for the consumer. In stark contrast, Custom Leather offers 13 different styles in over 70 different colors-from rich, deep browns to bright, sunflower; sleek, silver grays and bright, ruby red-through a select group of retail outlets. Each piece is built to the customer's individual requirements and is shipped within 2- 3 weeks. However, the emergence of a new manufacturing technology has enabled a few, traditionally mass- production competitors to offer greater customization, minimizing some of Custom Leather's competitive advantage. As a result, Custom Leather is considering sweeping changes to current work processes and organizational structure.
-After reading Woodward's work at Lamia's suggestion, Custom Leather CEO, Masoud, asks her about other contingency factors that should be considered in optimally designing the firm's structure. Lamia responds that another contingency factor linked to structure is .

• A) process
• B) organizational complexity
• C) market orientation
• D) size

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.

Monetary Cost

The amount of money expended to produce or acquire goods or services.

Opportunity Cost

The drawback of failing to select the next best possible choice during the decision-making process.

Free Meal

A complimentary food serving provided without charge, often as a promotional offering or as a benefit.