Asked by Tanvi Madkaiker on Sep 24, 2024
An international producer is trying to centralize its R&D.This is consistent with it trying to
A) Set up a functional division
B) Take advantage of the economies of scale
C) Take advantage of the learning curve effect
D) All of the above
R&D
Stands for research and development; the activities companies undertake to innovate and introduce new products or services.
Functional Division
A structure within an organization where departments are divided based on specific functions or roles, such as marketing or finance.
Economies of Scale
Economic gains that organizations derive from their magnitude of operations, with the expense per produced unit usually diminishing as the operational scale grows.
- Comprehend the qualities and benefits of functional organization within companies.
- Identify the characteristics and advantages of M-Form (Multidivisional Form) organizational configurations.
- Examine how the design of an organization affects the distribution of information, the achievement of scale economies, and the cultivation of specialized knowledge.
Learning Objectives
- Comprehend the qualities and benefits of functional organization within companies.
- Identify the characteristics and advantages of M-Form (Multidivisional Form) organizational configurations.
- Examine how the design of an organization affects the distribution of information, the achievement of scale economies, and the cultivation of specialized knowledge.