The Design of Organizational Structure Needs to Match the Firm's

question 7

Multiple Choice

The design of organizational structure needs to match the firm's strategy.Which of the following statements shows a mismatch?

• A) Costco with a competitive advantage of low cost tries to minimize the number of employees by assigning decisions to a few people at corporate headquarters.
• B) Walmart targeting price-sensitive customers centralizes organization structures.
• C) Retailers targeting high-fashion clothing customers have more managers.
• D) Best Buy built a competitive advantage based on low cost by allowing decision-making at the local store level.
• E) High-fashion clothing retailers tailor their merchandise and service to meet the needs of local markets.

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Definitions:

Prospect's Concern

Any issue or question that a potential customer has regarding a product or service, which may affect their purchasing decision.

Free Discussion

An open conversation in which participants are encouraged to share thoughts and ideas on a topic without strict structures or limitations.

Nondirective Question

A nondirective question is an open-ended query that encourages a detailed response, allowing the person to express thoughts and feelings without leading them in a specific direction.

Closed Ended

Pertains to questions or statements that limit responses to a simple "yes" or "no," often used in surveys, interviews, and sales techniques to control the direction of a conversation.