Why Do Changes in Company Strategy Often Require Changes in the Way

question 10

Multiple Choice

Why do changes in company strategy often require changes in the way an organization is structured?

• A) Structure dictates how objectives and policies will be established.
• B) Structure dictates how resources will be allocated.
• C) Structure should be designed to facilitate the strategic pursuit of a firm.
• D) All of the above
• E) None of the above

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Definitions:

Four-Firm Concentration Ratio

A measure of market concentration that indicates the combined market share of the four largest firms in an industry.

Productive Efficiency

A situation where a good or service is produced at the lowest possible cost.

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the total benefit to society.

Collusive Oligopoly

A market structure where a few firms dominating the market agree to set prices or output levels, reducing competition and maximizing collective profits.