Which of the following statements about companies that adopt a low-cost producer strategy is true?

Which of the following statements about companies that adopt a differentiation strategy is True?
A) They believe that people will pay more for a product that is unique in some way.
B) Their focus is on being as efficient as they can be.
C) They rely on selling products at the lowest possible cost.
D) They are more likely to take a mechanistic approach to organizational design.
E) They concentrate on developing large quantities of the same product, thereby providing cost advantages to their customers.

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Mechanistic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments. Mechanistic organizations are typified by a structure that relies on high levels of formalization, a rigid and hierarchical chain of command, high degrees of work specialization, centralization of decision making, and narrow spans of control. In contrast, organic organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments. Organic organizations are typified by a structure that relies on low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control.

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Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and
sells hair products for youth, male, female, elderly, and ethnic populations all over the United States
and several other countries. So far, the company has followed a simple structure. However, with fastpaced
growth, it has become a necessity that the company explore other organizational structures.
John, a long-time employee at Splash Hair Care, has collected information on how some of its
competitors have organized their companies. Streaks Inc. groups its employees by their different areas
of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in
the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division,
Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the
accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small
Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular
colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and
Shades of Blonde Division.
Which of the following describes Color Lite International's organizational structure?
A. Client-based
B. Product
C. Geographic
D. Functional
E. Matrix

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and
sells hair products for youth, male, female, elderly, and ethnic populations all over the United States
and several other countries. So far, the company has followed a simple structure. However, with fastpaced
growth, it has become a necessity that the company explore other organizational structures.
John, a long-time employee at Splash Hair Care, has collected information on how some of its
competitors have organized their companies. Streaks Inc. groups its employees by their different areas
of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in
the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division,
Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the
accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small
Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular
colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and
Shades of Blonde Division.
Which of the following describes Pure Oil's organizational structure?
A. Client-based
B. Product
C. Geographic
D. Functional
E. Matrix

Splash Hair Care Inc. is growing very fast in both sales and number of employees. It manufactures and
sells hair products for youth, male, female, elderly, and ethnic populations all over the United States
and several other countries. So far, the company has followed a simple structure. However, with fastpaced
growth, it has become a necessity that the company explores other organizational structures.
John, a long-time employee at Splash Hair Care, has collected information on how some of its
competitors have organized their companies. Streaks Inc. groups its employees by their different areas
of expertise such as Marketing, Finance, Human Resources, and Operations. Pure Oil, primarily in
the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division,
Southwest Division, and Central Division. Curlz Inc. has organized its employees according to the
accounts they serve, such as Large Company contracts, Internet Sales, Individual Sales, and Small
Salon Direct Sales. Finally, Color Lite International has grouped its business units around popular
colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and
Shades of Blonde Division.
Which of the following describes Curlz's organizational structure?
A. Client-based
B. Product
C. Geographic
D. Functional
E. Matrix

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Which of the following best describes a company that has adopted a low

Which of the following best describes a company that has adopted a low-cost producer strategy? It focuses on efficiency and productivity.

Which of the following is true of a low

Which of the following is true of a low-cost strategy? Correct It gives managers greater control over the organizational activities. The culture at Fired-Up Electronics focuses on empowering its employees and makes use of cross-functional teams.

Which of the following has been the most common kind of restructuring in recent years quizlet?

The most common kind of restructuring in recent years has been a "flattening" of the organization.

Which of the following items typifies the structure that organic organizations rely on?

Organic organizations are typified by a structure that relies on low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control.