Scenario D

question 10

Multiple Choice

Scenario D.As a manager working directly under the company president,Chloe has been given the assignment of transitioning the firm from a slow-moving bureaucracy to an agile,responsive organization.Chloe knows that the structure an organization adopts to accomplish agility will depend on its strategy,its customers,and its technology.
-Chloe wants to be sure that the firm focuses on competitiveness and manages its core capabilities to obtain competitive advantage.Therefore she should recommend that the company

• A)coordinate by standardization and centralize the decision-making process.
• B)formalize all processes with the written approval of the board of directors.
• C)change to a matrix structure in which functional and divisional forms overlap.
• D)accumulate the right resources and eliminate resources that do not provide value.
• E)switch to a mass customization model with large-batch technology.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, market segment, or purchase volume.

Higher Profits

An increase in the difference between a company's revenues and its expenses.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Marginal Cost

The boost in comprehensive expenditure that comes from the generation of one more unit of a product or service.