A firm's organizational structure is comprised of
A) resource strengths and competitive capabilities that allow it to incorporate attributes at lower costs than rivals whose products have similar attributes.
B) the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships by which the firm is administered.
C) excellent marketing and sales skills to convince buyers to pay a premium price for the attributes/features incorporated in its product.
D) sustainable distinctive competencies to ensure cost reduction and competitiveness.
E) a number of independent functional units involved in some common undertaking, with one unit typically in a more central role.

Question

Quizplus · Accepted Answer

Organizational structure refers to the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships by which a firm is administered. It is a framework that outlines how certain activities are divided, coordinated, and controlled within an organization. Option A refers to the concept of cost leadership, Option C refers to marketing and sales skills, and Option D refers to sustainable competitive advantage, which are unrelated to organizational structure. Option E describes a matrix structure, which is one type of organizational structure but is not a comprehensive definition of it.

A Firm's Organizational Structure Is Comprised of