If a Planned Strategy Is Not Compatible with the Company's

question 51

Multiple Choice

If a planned strategy is not compatible with the company's current culture, and management is not willing to make major organizational changes required to manage around the culture, what should the organization do?

• A)Find a joint-venture partner or contract with another company to carry out the strategy.
• B)Implement the new strategy and identify how it is superior to the old strategy.
• C)Move forward very carefully by introducing small steps and modifications before full implementation.
• D)Manage around the culture by establishing a new structural unit to implement the new strategy.
• E)none of these

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Definitions:

Selling Price

The amount of money a customer pays to purchase a product or service.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a set criteria, like direct labor hours.

Direct Labor Costs

The compensation provided to employees who are directly engaged in manufacturing goods or delivering services.

Total Overhead

The sum of all indirect costs incurred by a company, including administrative expenses, depreciation, and utilities.