The Chief Executive of a Large Telecommunications Company Wanted to Restructure

question 150

Multiple Choice

The chief executive of a large telecommunications company wanted to restructure the organization so product leaders would have more power than the executives in charge of each region.The regional executives tried to prevent this restructuring because it would weaken their power and possibly reduce their salaries in the long term.This action by the regional executives is mainly an example of resistance due to:

• A)fear of the unknown.
• B)saving face.
• C)direct costs.
• D)breaking routines.
• E)incongruent organizational systems.

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Definitions:

Product Promotion

A marketing strategy aimed at increasing consumer awareness of a product or brand, generating sales, and creating brand loyalty.

Product Differentiation

The method of differentiating a product or service from competitors in the marketplace to increase its appeal to a specified target audience.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Economic Profits

Economic profits are the excess returns over the total costs, including both explicit and implicit costs.