Business Management Concepts
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Business Management Concepts

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@PowerfulMesa

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Questions and Answers

What is the term used to describe the unproductive use of functional resources by divisional managers?

  • Transfer pricing
  • Information distortion
  • Organizational slack (correct)
  • Profit center
  • What is the primary role of an intrapreneur manager?

  • To pioneer and lead new venture projects or divisions (correct)
  • To establish performance goals for each division
  • To monitor the activities of divisional managers
  • To improve communication between divisions
  • What is the term used to describe a collection of employees linked by technology who rarely meet face-to-face?

  • Network structure
  • Knowledge management system
  • Business-to-business marketplace
  • Virtual organization (correct)
  • What is the term used to describe the process of establishing a fair price for a resource or skill developed in one division that is to be transferred to another division?

    <p>Transfer pricing</p> Signup and view all the answers

    What is the primary purpose of a knowledge management system?

    <p>To provide access to employees with the expertise needed to solve problems</p> Signup and view all the answers

    What is the term used to describe a cluster of different companies whose actions are coordinated by contracts and outsourcing agreements?

    <p>Network structure</p> Signup and view all the answers

    What type of organization connects employees through laptops, smartphones, and global video teleconferencing?

    <p>Virtual organization</p> Signup and view all the answers

    What is the primary function of a knowledge management system?

    <p>To systematize employee knowledge and provide access to expertise</p> Signup and view all the answers

    What is the primary characteristic of a self-contained division?

    <p>It is a separate business unit with all necessary functions</p> Signup and view all the answers

    What is the main goal of a Business-to-Business (B2B) Marketplace?

    <p>To connect buyers and sellers to lower costs</p> Signup and view all the answers

    What is the primary role of a corporate headquarters staff?

    <p>To provide guidance to self-contained divisions</p> Signup and view all the answers

    What is the main advantage of a multidivisional structure?

    <p>It allows companies to grow and diversify while reducing coordination and control problems</p> Signup and view all the answers

    Study Notes

    Organizational Structures

    • Virtual organization: a collection of employees linked by laptops, smartphones, and global video teleconferencing who may rarely meet face-to-face, but who join and leave project teams as their skills are needed.
    • Multidivisional structure: a complex organizational design that allows a company to grow and diversify while reducing coordination and control problems, using self-contained divisions and a separate corporate headquarters staff.

    Self-Contained Divisions

    • Defined as an independent business unit or division that contains all the value chain functions it needs to pursue its business model successfully.
    • Treated as a separate financial unit, with financial controls used to establish performance goals and measure profitability (profit center).

    Corporate Headquarters Staff

    • A team of top executives, as well as their support staff, responsible for overseeing a company's long-term multi-business model and providing guidance to increase the value created by the company's self-contained divisions.

    Challenges in Organizational Structures

    • Organizational slack: the unproductive use of functional resources by divisional managers that can go undetected unless corporate managers monitor their activities.
    • Information distortion: the manipulation of facts supplied to corporate managers to hide declining divisional performance.
    • Transfer pricing: the problem of establishing the fair or "competitive" price of a resource or skill developed in one division that is to be transferred and sold to another division.

    Integration and Innovation

    • Integrating roles: managers who work in full-time positions established specifically to improve communication between divisions.
    • Intrapreneurs: managers who pioneer and lead new venture projects or divisions, and act as inside or internal entrepreneurs.
    • New-venture division: a separate and independent division established to give its managers the autonomy to develop a new product.

    Knowledge Management and Networking

    • Knowledge management system: a company-specific information system that systematizes the knowledge of all its employees and provides access to employees who have the expertise needed to solve problems as they arise.
    • Business-to-business (B2B) Marketplace: an industry-specific trading network established to connect buyers and sellers through the Internet to lower costs.
    • Network structure: a cluster of different companies whose actions are coordinated by contracts and outsourcing agreements rather than by a formal hierarchy of authority.

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    Description

    This quiz covers key concepts in business management, including virtual organization, knowledge management systems, and business-to-business marketplaces. Test your understanding of these important business principles.

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