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Why is it important for an IC's structures and systems to be consistent with each other and with the environmental context in which the organization is operating?
Why is it important for an IC's structures and systems to be consistent with each other and with the environmental context in which the organization is operating?
- To coordinate the activities of the resulting departments to meet the firm's overall objectives.
- To determine where formal power and authority will be located within the organization.
- To respond to change and to efficiently and effectively reconfigure the way in which its competencies and resources are integrated within and across the company's various business units.
- To ensure efficient and effective integration of the company's worldwide business activities. (correct)
What is organizational structure?
What is organizational structure?
- The size of an organization and the complexity of its business operations.
- The process that determines how a company should be organized to ensure its worldwide business activities are integrated in an efficient and effective manner.
- The way an organization formally arranges its domestic and international units and activities and the relationships among these components. (correct)
- The formal power and authority located within an organization.
What are the two main issues to consider in designing an IC's structure?
What are the two main issues to consider in designing an IC's structure?
- The size of the organization and the complexity of its business operations, and the relationship between formal power and authority within the organization.
- Product and technical expertise for the company's different businesses, and geographic expertise on the countries and regions in which the company operates.
- Customer expertise to gauge the similarity of client groups, industries, market segments, or population groups that transcend the boundaries of individual countries or regions, and functional expertise in the company's value chain activities.
- Departmentalizing to most effectively take advantage of efficiencies gained from specialization of labor, and coordinating the resulting departments' activities to meet the firm's overall objectives. (correct)
What are the four elements that need to be considered when designing the structure of an IC?
What are the four elements that need to be considered when designing the structure of an IC?
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Does structure follow strategy?
Does structure follow strategy?
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