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47.A functional structure is recommended when a firm:A.has a broad focus in terms of its product/serviceofferings.B.has a low level ofdiversification.C.has a low degree ofspecialization.D.diversifies into different product lines andgeographies.A functional structure is recommended when a firm has a fairly narrow focus in termsof product/service offerings [i.e., low level of diversification] combined with a smallgeographic footprint.AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 11-05 Describe different organizational structures and match them with appropriate strategies.Topic: Matching Structure And Strategy
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Essential Calculus: Early Transcendentals
Stewart
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48.Which of the following is an advantage of using a functional structure when pursuing acost-leadership strategy?A.It allows a cost leader to upgrade core competencies in manufacturingand logistics.B.It enables a cost leader to build products that are different from itscompetitors' offerings.C.It enables a cost leader to increase costs above that of itscompetitors.D.It allows a cost leader to operate in a decentralized organizationalstructure.To effectively implement a cost-leadership strategy, managers must create afunctional structure that contains the organizational elements of a mechanisticstructure—one that is centralized, with well-defined lines of authority up and down thehierarchy. Using a functional structure allows the cost leader to nurture and constantlyupgrade necessary core competencies in manufacturing and logistics.AACSB: AnalyticAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 11-05 Describe different organizational structures and match them with appropriate strategies.Topic: Matching Structure And Strategy49.Plow Inc. is a greeting card manufacturing company. Plow's market dominance existsprimarily because of the innovative designs of its greeting cards when compared tothose of its competitors. In this scenario, Plow Inc.'s managers must ideally rely on afunctional structure that resembles a[n] _____.A.simpleorganizationB.organicorganizationC.mechanisticorganizationD.integratedorganizationIn this scenario, Plow Inc.'s managers must rely on a functional structure thatresembles an organic organization. By creating greeting cards with innovativedesigns, Plow Inc. is using a differentiation strategy. The goal of a differentiationstrategy is to create a competitive advantage by offering products or services at ahigher perceived value, while controlling costs.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: ApplyDifficulty: 3 HardLearning Objective: 11-05 Describe different organizational structures and match them with appropriate strategies.
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Essential Calculus: Early Transcendentals
Stewart
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