Why Should Structures, Systems, and Management Styles in Firms Operating

question 20

Multiple Choice

Why should structures, systems, and management styles in firms operating in mature industries, mesh several performance goals? Because:

• A)Employees are more demanding in these firms
• B)Competitive advantage requires achieving two conflicting aims: operational efficiency and innovation
• C)They are always necessary, regardless of the stage of the industry life cycle
• D)Competition is stronger in mature industries

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Definitions:

Prisoners' Dilemma

The Prisoners' Dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Repeatedly Interact

Engaging in continuous or frequent exchanges or encounters between individuals or entities.

Maximin Strategy

A strategy in game theory and decision-making that aims to maximize the minimum gain that can be achieved, often used in situations of uncertainty to minimize risk.

Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.