The Rationale for Making Strategy-Critical Value Chain Activities the Primary

question 55

Multiple Choice

The rationale for making strategy-critical value chain activities the primary building blocks in a company's organizational chart is based on

• A) the much shorter time it takes to build core competencies and competitive capabilities.
• B) the benefit such an organizational scheme has in reducing costs.
• C) the benefit such an organizational scheme has in improving the productivity of geographically scattered organizational units.
• D) the thesis that if activities crucial to strategic success are to have the resources,decision-making influence,and organizational impact they need,they have to be centerpieces in the organizational scheme.
• E) the benefit such an organizational scheme has in making the empowerment of employees more effective.

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Definitions:

Dividends

Money paid out to shareholders by a corporation, usually as a share of profits.

Retained Earnings

Profits that a company keeps or reinvests, rather than distributing to stockholders as dividends.

New Stock

Issuance of additional shares by a company to raise capital, which can dilute existing shareholders' ownership percentage.

New Equity

Capital raised by a company through the issuance of common or preferred stock, increasing the shareholders' equity.