An important lesson from the Chapter 11 Opening Case about Borders is that
A) Borders did a good job of implementing its strategy but its structure was wrong.
B) structures rarely evolve in response to strategic change.
C) while a firm's structure usually follows the strategy, once in place, structure can have a significant effect on strategy.
D) Borders' decentralized structure led to poor decision making.

Question

Quizplus · Accepted Answer

The case highlights that while a firm's structure usually follows the strategy, once in place, structure can have a significant effect on strategy. Borders' decentralized structure made it difficult for the company to respond effectively to changes in the book industry, leading to poor decision-making and ultimately bankruptcy. This suggests that a mismatch between strategy and structure can have serious consequences, and that firms need to periodically evaluate their structure to ensure that it remains aligned with their strategic goals. Option A is incorrect because Borders' structure was the problem, not its strategy implementation. Option B is not supported by the case, and option D is only partially correct as poor decision-making was an effect of the decentralized structure.

An Important Lesson from the Chapter 11 Opening Case About