To effectively compete against lower-priced foreign manufacturers, Mr. Johnson concludes that Prairie needs to pursue a strategy of cost minimization. The efficiency and tight controls associated with this strategy are best achieved through a(n) _________ structure.
A) boundaryless
B) mechanistic
C) network
D) organic
E) virtual

Question

Quizplus · Accepted Answer

A mechanistic structure is often associated with a cost minimization strategy as it emphasizes efficiency, standardization, and tight controls. This type of structure is hierarchical, with clearly defined roles and responsibilities, and formalized communication channels. A boundaryless structure emphasizes flexibility, innovation, and collaboration, which may not be as effective for cost minimization. Network and virtual structures rely heavily on technology and may not be suitable for a manufacturing company like Prairie. An organic structure emphasizes adaptability and employee empowerment, which may not be as effective for cost minimization as a mechanistic structure.

To Effectively Compete Against Lower-Priced Foreign Manufacturers, Mr