Under What Conditions Are Customer-Centric Structures Appropriate? What Challenges Does

question 25

Essay

Under what conditions are customer-centric structures appropriate? What challenges does this type of organization structure face and why?

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Definitions:

Outstanding Shares

The total number of shares of a corporation that have been issued and are held by shareholders, including restricted shares owned by company insiders.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the original cost of the asset.

Fair Market Value

The price an asset would sell for on the open market when certain conditions are met, such as both the buyer and seller are knowledgeable, willing, and not under duress.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable assets and liabilities.