Pipeline Designs Inc

question 39

Multiple Choice

Pipeline Designs Inc.is a firm that outsources designs for apparels and accessories to reputed fashion houses across Europe.Of late,it has been losing out on orders from important clients.A study conducted on the firm reflected that though the designers were highly capable,low levels of employee empowerment,motivation,and experimentation stifled their creativity.To tackle this problem the firm should:

• A) adopt a mechanistic structure.
• B) adopt high degrees of formalization and standardization.
• C) adopt an organic structure.
• D) avoid keeping its R&D activities decentralized.

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Definitions:

Actual Outputs

The real, measurable production or work results achieved by a company or an individual, often compared to planned or expected outputs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning.

Variable Costs

Expenses that change in proportion to the activity of a business.

Fixed Overheads

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance costs.