Briefly Describe How Technology and the Environment Should Be Considered

question 33

Essay

Briefly describe how technology and the environment should be considered in determining an appropriate structure in organisational design.

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Definitions:

Multiple

A financial metric used to compare a company's market value to its earnings, sales, or other financial measures, often indicating how much investors are willing to pay per dollar of earnings or assets.

Total Variable Costs

Total variable costs are expenses that vary directly with changes in production or sales volume, such as raw materials and labor costs tied to production levels.

Activity Level

A measure of the volume of production or services that influences costs and revenue within a specified period.

Relevant Range

The range of activity over which the assumptions about cost behavior for a company are valid.