As a Manager Working Directly Under the Company President, Chloe

question 32

Multiple Choice

As a manager working directly under the company president, Chloe has been given the assignment of transitioning the firm from a slow-moving bureaucracy to an agile, responsive organization. Chloe knows that the structure an organization adopts to accomplish agility will depend on its strategy, its customers, and its technology. Chloe's boss is considering forming a strategic alliance to enter a new market. In order to be successful at doing so, Chloe recommends that before moving forward with the strategic alliance, her boss must first

• A)consider the other firm's area of expertise.
• B)be certain he would remain the president.
• C)develop a worldwide network with the other firm.
• D)ensure that the other firm uses authority as he does.
• E)find a decentralized organization with which to partner.

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Definitions:

Gambler's Fallacy

A logical fallacy in which one assumes that future probabilities are altered by past events, often seen in gambling when assuming a certain outcome is "due".

Sunk Cost Fallacy

The misconception of valuing a project or investment based on the amount of resources already invested, rather than the prospective future returns.

Argumentum Ad Hominem

A logical fallacy that occurs when an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument, rather than addressing the substance of the argument itself.

Gambler's Fallacy

The erroneous belief that if an event happens more frequently than normal during a past period, it will happen less frequently in the future, or vice versa.