Restructuring at Digital Arts (Scenario)

question 134

Multiple Choice

Restructuring at Digital Arts (Scenario)
Victor Lee is the founder and president of Digital Arts, a Vancouver-based company that makes games for popular electronic game consoles. The company has experienced tremendous growth over the years, but now Victor is concerned that the company's structure has become too tall and rigid. He explains, "Twenty years ago we started with five people and one product. Today we are a global operation with 500 people employed in six countries producing over 200 game titles." Digital Arts is currently organized into five specialized departments: product development, production, marketing, accounting, and human resources. To coordinate the workflow, many rules and regulations have been introduced. Victor now worries that the increased bureaucracy is beginning to stifle innovation. He ponders several restructuring options.
-Another option is to establish separate business units for each of the six countries in their global operation.Each regional manager would have strategic and operational authority over his or her unit.Digital Arts would then have a ________ structure.

• A)functional
• B)divisional
• C)matrix
• D)network

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Definitions:

Wage Rate

The fixed amount of compensation or payment provided to an employee by an employer in return for work performed, typically expressed per hour or year.

Utility Maximizer

An individual or entity that seeks to achieve the highest level of satisfaction possible from their consumption choices, given their resources.

Net Seller

An individual or entity that sells more than it purchases in a given market, often resulting in a net inflow of funds.

Net Buyer

An entity or individual that purchases more of a commodity or asset than they sell in a specific period.