A strategy of unrelated diversification where synergies


1. Pharmaceutical giant Eli Lily used the power of the internet to launch Innocentive, an online incentive-based scientific network to enable scientists outside the company to collaborate on product development. This is an example of a(n)

a. modular organization

b. virtual organization

c. ambidextrous organization

d. divisional structure

2. ConAgra, a 13-billion-dollar food producer, has many different business units. It is difficult to coordinate and plan activities. As a result, they decided to design their organizational structure based on business unit commonalities. They grouped their business units into three strategic business units: food services (restaurants), retail (grocery stores), and agricultural products. This is an example of:

a. holding company

b. divisional structure

c. matrix structure

d. simple structure

3. A strategy of unrelated diversification where synergies between the businesses are limited often results in which type of organizational structure?

a. Strategic business unit structure

b. Holding company structure

c. Matrix structure

d. Functional structure

4. Which new entry strategy did Under Armor use when they entered the market with improved athletic apparel that helped wick moisture away from the body?

a. None of the above

b. adaptive

c. imitative

d. pioneering

5. All of the following are typical types of boundaries that can place limits on organizations except

a. mechanistic boundaries

b. external boundaries

c. geographic boundaries

d. vertical boundaries

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Operation Management: A strategy of unrelated diversification where synergies
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