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Dramatic Expressions Dramatic Expressions Is a Home Decorating Company That Sells Many

question 69

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Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Wanda thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
-Refer to Dramatic Expressions. Wanda should address all of the following when it comes to organizing the business except

Definitions:

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimal, reflecting consumer preferences and maximizing total societal welfare.

Productive Efficiency

A situation in which a goods or services are produced at the lowest possible cost, utilizing all available resources efficiently.

Monopoly Power

The ability of a single supplier to control the market price and supply of a product or service.

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.