Bubble-Up, Inc

question 77

Multiple Choice

Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share. There is a wide-spread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys. Which one of these statements is most likely TRUE?

• A) The owners of Bubble-Up are unconcerned about Mega-Toy's entry to the market because of the resource dissimilarity between the firms.
• B) Bubble-Up's greater organizational slack will allow it to aggressively attack Mega-Toy.
• C) Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.
• D) Competitive rivalry will not increase for Bubble-Up because Mega-Toy is not dependent on the educational toy market.

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Definitions:

Poorer Coordination

The ineffective organization and alignment of activities and tasks among members of a group, leading to suboptimal outcomes.

Specialization of Skills

The process of focusing on and becoming expert in a specific area of skills or knowledge, improving efficiency and effectiveness.

Matrix Organizational Structure

An organizational layout that assigns specialists from different functional departments to work on one or more projects led by a project manager.

Overlays

In organizational context, refers to additional or supplementary structures or systems laid on top of existing ones to address specific needs or challenges.