IBM Undertook a Massive Restructuring Program to Decentralize into Six

question 67

True/False

IBM undertook a massive restructuring program to decentralize into six smaller decision-making groups in order to reduce economies of scale.

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Definitions:

Market Shares

Represents the percentage of an industry's sales that a particular company controls.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, often due to economies of scale.

Economies of Scale

Economies of scale occur when increasing the production scale leads to a decrease in the long-term average costs, often due to more efficient use of inputs.

Exclusive Franchise

A legal agreement granting one party the sole right to sell or distribute a company's products or services in a particular market area.