A portfolio approach will influence organization design by determining the
A) number of SBUs.
B) autonomy of the SBUs.
C) production quotas of the SBUs.
D) human resource policies of the SBUs.
E) technology utilized by the SBUs.

Question

Quizplus · Accepted Answer

A portfolio approach focuses on evaluating and managing a company's collection of businesses as a portfolio of investments, with the goal of maximizing overall performance and minimizing risk. This approach involves categorizing the company's businesses into different strategic business units (SBUs) based on their market position and growth potential. Each SBU can then be given varying levels of autonomy based on its strategic importance and performance potential within the portfolio. Therefore, a portfolio approach will influence organization design by determining the autonomy of the SBUs.

A Portfolio Approach Will Influence Organization Design by Determining the