What Would Most Likely Cause an Organization to Decentralize

question 5

Multiple Choice

What would most likely cause an organization to decentralize?

• A) The need to make decisions that could cost the company millions of dollars
• B) A large number of new and untested middle managers
• C) A dynamic or complex environment
• D) A corporate culture that believes that all important decisions must be made by top-level managers
• E) Strong leadership at top levels

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Definitions:

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the competition level among them.

Dominant Strategy

In a strategic interaction (game) between two or more players, a course of action (strategy) that a player will wish to undertake no matter what the other players choose to do.

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

First-Mover Advantages

Competitive benefits that accrue to the initial entrant into a market, including brand recognition and product loyalty before competitors enter.