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:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, typically indicating inflation or deflation.

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.

Purchasing Power

The economic value of a currency depicted by the number of goods or services obtainable by a single monetary unit.