When supporting a related-diversification strategy with the M-form organizational structure, managers typically Blank______.Multiple choice question.avoid making decisions until consulting all division managersconcentrate decision making at the top of the organizationrely on lower-level workers to make decisionsdiscourage cooperation for competency sharing
Question
When supporting a related-diversification strategy with the M-form organizational structure, managers typically Blank______.Multiple choice question.avoid making decisions until consulting all division managersconcentrate decision making at the top of the organizationrely on lower-level workers to make decisionsdiscourage cooperation for competency sharing
Solution
The correct answer is: concentrate decision making at the top of the organization.
In a related-diversification strategy, the company expands its business operations into related industries. The M-form (Multidivisional) organizational structure is a type of organizational structure where the company is separated into several semi-autonomous divisions which are guided and controlled by (financial) targets from the parent corporation.
In this structure, decision-making is typically concentrated at the top of the organization. This is because the top management of the parent corporation needs to ensure that all divisions are working towards the overall strategic goals of the corporation. They also need to manage and coordinate the sharing of resources and capabilities among the divisions to exploit synergies, which is a key aspect of the related-diversification strategy.
Similar Questions
True or false: Firms that are supporting an unrelated-diversification strategy through the use of the M-form structure should decentralize decision making.
The extent to which the ability to make decisions rests with the people at the top of a firm is referred to as Blank______.Multiple choice question.controlspecializationcentralizationformalization
If there are several levels of management between the lowest employee and the CEO, the firm has a Blank______ structure.Multiple choice question.wideroundflattall
A multidivisional organizational (M-form) structure is more likely when (note multiple correct answers are possible): Group of answer choices Technology is relatively stable in the industry The firm sells into just one market. The firm is large and produces a diverse range of products The firm produces a small range of products. There is a single division.
Which of the following is true of an M-form?Multiple choice question.Each division operates independently.There is fluid movement between divisions.All levels of the firm are highly integrated.There is a flat organizational hierarchy.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.