Which Type of Structure Was Used by Nestle to Tailor

question 28

Multiple Choice

Which type of structure was used by Nestle to tailor products to regional differences and to achieve regional coordination?

• A) geographic-area structure
• B) network structure
• C) product-group structure
• D) international structure
• E) functional structure

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Entry Barriers

Refers to obstacles that hinder new firms from entering a market, such as patents, strong brand loyalty among existing customers, or high capital requirements, essentially similar to barriers to entry but rephrased.

Short Run

A time period during which at least one factor of production is fixed, limiting the ability of the firm to adjust to changes in demand or production costs.

Profit-Maximizing

The strategy or method of modifying the production and sales of products and services to attain the maximum possible profit.