There Are Three Major Benefits When a Firm Contracts

question 7

Multiple Choice

There are three major benefits when a firm contracts.When Ford divested itself of its unprofitable foreign luxury brands and Volvo,and discontinued its Mercury brand,which of the following was the most important benefit discussed in the case?

• A) managers no longer waste resources on poorly performing brands
• B) new product items have a greater chance of being successful
• C) resources become concentrated on important Ford products
• D) reposition Ford as a domestic carmaker only
• E) all of the above

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Definitions:

Delegation

The assignment of responsibility or authority to another person to carry out specific tasks.

Entrusting Work

Assigning responsibilities or tasks to others, often to delegate authority and distribute workload.

Decision and Action

The process of making choices and following through with behaviors to enact those choices.

Organic Designs

Organic designs in organizations involve flexible, adaptable structures with less rigid hierarchies and more emphasis on teamwork and collaboration to respond quickly to changes.