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.

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Definitions:

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A rate that reflects the actual annual cost of a loan or the earnings on an investment, taking into account the effect of compounding.

False Consensus Effect

A psychological bias where individuals believe their own viewpoints, actions, and behaviors are more common in the general population than they actually are.

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