Question

Cisco Systems uses a differentiation strategy. It offers its customers the latest in routers and switches. Cisco products may cost a bit more, but customers believe they are worth every penny. Cisco Systems will be more effective if it has _________ (a mechanistic or an organic) structure. Which of the following reasons explain this? Check all that apply.
A. Narrower spans of management and centralized decision making offer improved product control.

B. Decentralized decision making allows for greater flexibility in meeting customer needs.

C. Vertical communication flows ensure that decisions are standardized throughout the company.

D. Shorter chains of command and horizontal communication allow for increased innovation.

Answer 1

Answer: The corrects answers are "organic", "B. Decentralized decision making allows for greater flexibility in meeting customer needs." and "D. Shorter chains of command and horizontal communication allow for increased innovation.".

Explanation: Cisco Systems will be more effective if it has an organic structure.

The reasons that explain this are that decentralized decision-making provides greater flexibility in meeting customer needs, and through short chains of command and horizontal communication, innovation is promoted.