Keyhole Corporation is the parent company of Inspire.com and Roker Inc. To cut costs, Keyhole integrated InSpire.com's and Roker Inc.'s management functions with Keyhole's management, while keeping other functions such as product development independent. Keystone has encourage the senior teams at both Inspire and Roker to exploit the success of their existing products while exploring new products for the future. This scenario best exemplifies a(n)
A) multidivisional structure.
B) organic organization.
C) simple structure.
D) ambidextrous organization.

Question

Quizplus · Accepted Answer

The goal for managers who want to pursue a blue ocean strategy is to build an ambidextrous organization, one that enables managers to balance and harness different activities in trade-off situations. Here, the trade-offs to be addressed involve the simultaneous pursuit of low-cost and differentiation strategies. Ambidexterity describes a firm's ability to address trade-offs not only at one point but also over time. It encourages managers to balance exploitation-applying current knowledge to enhance firm performance in the short term-with exploration-searching for new knowledge that may enhance a firm's future performance.

Keyhole Corporation Is the Parent Company of Inspire