Alkyl, Ltd

question 56

Multiple Choice

Alkyl, Ltd., designs shoes using computer-aided design, and they electronically store all new product information, including manufacturing instructions. When the designers have finished their work, they electronically transmit all the blueprints for the new products to a network of Southeast Asian suppliers and manufacturers with which Alkyl, Ltd., has formed strategic alliances. Instructions for the design of a new sole are sent to a supplier in India with instructions for the leather uppers to a supplier in Bhutan. The strategic alliance Alkyl, Ltd., follows is an example of a ________ structure.

• A) network
• B) decentralized
• C) vertically integrated
• D) diversified product

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Definitions:

Lowest Rank

Refers to the position, level, or grade of an entity or individual that is at the bottom of a hierarchical system.

Payback Periods

The length of time required to recoup the initial investment in a project or investment, measured in years or months.

Higher Risk

Refers to the increased likelihood of experiencing a loss or encountering a negative outcome in an investment or other business activity.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company would consider in order to pursue the project.