When a Large and Established Firm Gets into a New

question 214

Multiple Choice

When a large and established firm gets into a new line of business, either on its own or by acquiring a smaller and newer innovative firm, what kind of structure does the new innovative unit require compared to that of the established parent?

• A)More mechanistic
• B)More organic
• C)More matrix
• D)More virtual
• E)More modular

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Definitions:

Henry Ford

An American industrialist and founder of the Ford Motor Company, notable for pioneering mass production techniques like the assembly line.

Pin Factory

An example used by Adam Smith to describe the benefits of division of labor and specialization in increasing production efficiency.

Automobile Assembly

The process of putting together the various parts of cars or other vehicles.

Inefficient Processes

Processes that utilize more resources or time than necessary, leading to reduced productivity or increased costs.