The Rationale for Making Strategy-Critical Value Chain Activities the Primary

question 74

Multiple Choice

The rationale for making strategy-critical value chain activities the primary building blocks in a company's organizational chart is based on the

• A)much shorter time it takes to build core competencies and competitive capabilities.
• B)benefit such an organizational scheme has in reducing costs.
• C)benefit such an organizational scheme has in improving the productivity of geographically scattered organizational units.
• D)thesis that if activities crucial to strategic success are to have the resources,decision-making influence,and organizational impact they need,they have to be centerpieces in the organizational scheme.
• E)benefit such an organizational scheme has in making the empowerment of employees more effective.

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Definitions:

Vertical Merger

The merger of one or more firms engaged in different stages of the production of a particular final good.

Antitrust Cases

Legal disputes focused on stopping or managing businesses that violate competition laws designed to promote market fairness and prevent monopolies.

Herfindahl Index

A measure of market concentration and competition, calculated as the sum of the squares of the market shares of all firms within an industry.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing monopolies.