Why Does a Firm Use an Organic Organization Combined with a Functional

question 18

Multiple Choice

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

• A) It allows the firm to create incentives to foster process innovation in order to drive down cost.
• B) It allows the firm to reduce its cost below that of competitors while offering acceptable value.
• C) It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
• D) It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.

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Definitions:

Primary Boycott

The act of refraining from purchasing the products or services of a company to protest its actions or policies, usually at the initiative of labor unions.

Strike

A work stoppage caused by the mass refusal of employees to work, typically aimed at protesting against an employer’s terms or practices.

Wide-Area Bargaining

A negotiation process that involves multiple business units or geographical locations aiming for a common agreement in labor terms.

Telecommunications

The transmission of words, sounds, images, or data in the form of electronic or electromagnetic signals over distance.