An Organization with a Differentiation Strategy Should

question 7

Multiple Choice

An organization with a differentiation strategy should:

• A) adopt an organic structure and make extensive use of informal communication to coordinate work.
• B) centralize and formalize its organizational structure.
• C) coordinate employees by writing up formal rules and procedures.
• D) switch to a cost leadership strategy as quickly as possible.
• E) adopt a mechanistic structure with functional departmentalization.

---

Definitions:

Apparent Authority

A situation in which a person appears to have the authorization to act on behalf of another entity, leading third parties to reasonably believe such authority exists.

Knowingly

Acting with awareness or deliberate intention, often referenced in legal contexts to imply a person had knowledge or should have had knowledge of the implications of their actions.

Ratification

The act of formally confirming or approving an agreement, often after the agreement is initially made, to make it officially valid.

Fiduciary Duty

An obligation to act in the best interest of another party, such as that of a trustee towards a beneficiary.