Why Should Managers Using the M-Form Organizational Structure to Support

question 17

Multiple Choice

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

• A) It allows a high level of integration.
• B) It helps contain the core competencies within a strategic business unit (SBU).
• C) It leads to competition between SBUs.
• D) It helps evaluate each SBU as a stand-alone profit-and-loss center.

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Definitions:

Cerebrum

The upper part of the brain consisting of the two hemispheres and the structures that connect them.

Upper Part

The higher section or portion of an object, area, or body.

Cortex

The outer layer of the cerebrum of the mammalian brain, involved in higher brain functions such as thought and action.

Thalamus

A brain structure that processes and relays sensory information to the appropriate areas of the brain.