Why Should Managers Using the M-Form Organizational Structure to Support

question 17

Multiple Choice

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

• A) It allows a high level of integration.
• B) It helps contain the core competencies within a strategic business unit (SBU).
• C) It leads to competition between SBUs.
• D) It helps evaluate each SBU as a stand-alone profit-and-loss center.

---

Definitions:

Subsurface Material

Material (such as rocks, soil, and sediment) found beneath the surface layer of the Earth, important in geotechnical engineering and environmental studies.

Permeability

A measure of how easily fluids can flow through a porous rock or material.

Uncompacted Clays

Clay material that has not been subjected to pressure, typically soft and easily deformed, often leading to stability issues in construction.

Porosity

The measure of empty spaces within rocks or soil, determining their ability to absorb and hold water or other fluids.