A Company Must Do All of the Following to Match

question 92

Multiple Choice

A company must do all of the following to match structure to strategy EXCEPT

• A)choose a basic organizational design and modify it to fit the company's particular business.
• B)supplement the design structure with coordinating mechanisms.
• C)institute networking and communication arrangements to support strategy execution.
• D)set up "ideal" organizational arrangements despite having to disturb existing relationships.
• E)knit the efforts of outsourced groups together.

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Definitions:

Contribution Margin Ratio

A financial metric that measures the ability of a company to cover variable costs with its revenue.

Fixed Costs

Fixed expenses unaffected by variations in production or sales levels, like rent, wages, and insurance.

Target Income

The profit amount that a company aims to achieve within a specific period.

Required Sales

The volume of sales necessary to achieve a specific financial objective, such as covering costs or reaching a target profit.