Define the Three Major Dimensions of Organizational Structure: Specialization, Centralization

question 124

Essay

Define the three major dimensions of organizational structure: specialization, centralization, and formalization. How do these dimensions vary in organizations implementing the cost-leadership, differentiation, and the cost-leadership/differentiation strategies?

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Definitions:

Credit Terms

Terms for payment on account by the buyer to the seller.

Sales Discount

A reduction in the price of goods or services offered to customers, often to prompt early payment or bulk purchases.

Perpetual Inventory System

A system for managing inventory accounts that automatically updates the sale or purchase records using computerized point-of-sale technology and software for enterprise asset management.

Merchandise Inventory

The total value of a company’s goods that are available for sale to customers, comprising both raw materials and finished products.