Which of the Following Statements About Implementing Corporate-Level Strategies and Effective

question 28

Multiple Choice

Which of the following statements about implementing corporate-level strategies and effective organizational structures is true?

• A) Firms pursuing a related linked strategy should implement a competitive structure with a competitive culture and centralized strategic planning activities.
• B) Firms pursuing an unrelated diversification strategy should use an SBU structure with a small corporate staff, emphasize the R&D function, and integrate divisions to achieve synergies.
• C) Firms pursuing a related linked strategy should use an SBU structure, emphasize interdependence among divisions, and manage the strategic planning function from the central office.
• D) Firms pursuing a related constrained strategy should implement a cooperative structure, use integrative devices to link divisions, centralize the R&D function, and emphasize sharing.

Understand the concept of a production function and its relevance to the efficiency of different forms of production.

Identify and describe the characteristics of short-run and long-run production periods.

Analyze the implications of fixed and variable inputs on production functions.

Explain the law of diminishing returns and its impact on production.

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Definitions:

Net Sales

The total revenue from sales transactions after deducting returns, allowances, and discounts.

Discount Period

A specified period within which a buyer can pay less than the full amount due by taking advantage of a discount offered by the seller.

Customer

An individual or entity that purchases goods or services from a business.

Sales Returns and Allowances

Concessions made to customers for returned merchandise or unsatisfactory goods, reducing sales revenue.