When a Large and Established Firm Gets into a New

question 214

Multiple Choice

When a large and established firm gets into a new line of business, either on its own or by acquiring a smaller and newer innovative firm, what kind of structure does the new innovative unit require compared to that of the established parent?

• A)More mechanistic
• B)More organic
• C)More matrix
• D)More virtual
• E)More modular

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Definitions:

Satisficing Decisions

Solutions that aim for acceptable results rather than for the best or optimal ones.

Tactical Decisions

Short-term choices made to achieve specific objectives that are part of a larger strategic plan.

Heuristics

Shortcuts or “rules of thumb” that allow us to make judgments and decisions quickly and efficiently.

Rules Of Thumb

Simple, practical guidelines or principles derived from experience and used to make decisions or solve problems quickly.